Tuesday, September 23, 2008

Gold's Reaction to US Government's Bail Out Plan

Gold, silver and other markets see the US government's bail out plan as a big over all negative.
The HUI (AMEX's gold & silver shares index) was up.

The Dow was down.

The USD dropped big time. The index was down ** 3 ** from Friday's high.

Bonds were down. The yield was too low. The market wants higher interest rates.

Silver and gold were up.

The US's financial system almost froze up on Monday, thus the announcement of the bail out plan over the weekend. It still actually hasn't happened. The White House
is making announcements this morning that it will happen, trying to re-assure the rest of the world as well as "Wall Street", and the average Tom, Dick and Harry.

9:17AM Bush: Assured foreign leaders that mortgage plan will pass
9:03AM Paulson says his mortgage plan must hit the ground running
8:45AM Bernanke says Congress must pass Paulson debt plan

These guys are sweating bullets after Monday's market actions.

Are we in deep trouble? Come on, tell me the truth.


Putin calls for changing the architecture of the international financial system

20.09.2008, 17.56

SOCHI, September 20 (Itar-Tass) -- Prime Minister Vladimir Putin called for changing the architecture of the international financial system.


From the Los Angeles Times


Europeans on left and right ridicule U.S. money meltdown


September 20, 2008



The finance minister of Italy's conservative and pro-U.S. government warned of nothing less than a systemic breakdown. Giulio Tremonti excoriated the "voracious selfishness" of speculators and "stupid sluggishness" of regulators. And he singled out Alan Greenspan, the former chairman of the U.S. Federal Reserve, with startling scorn.

"Greenspan was considered a master," Tremonti declared. "Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most. . . . It is clear that what is happening is a disease. It is not the failure of a bank, but the failure of a system. Until a few days ago, very few were willing to realize thei ntensity and the dramatic nature of the crisis."

In an interview Thursday in the Italian newspaper Corriere della Sera,Tremonti drew a comparison to corruption-ridden Albania in 1997, when a nationwide pyramid scheme cost hundreds of thousands of people their savings and ignited anarchic civil conflict.

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