It seems Wall Street doesn't like the idea of nationalizing the banks
Fears of a nationalisation of Citigroup and Bank of America shook global markets on Friday, sending shares in the troubled banks tumbling and dragging down the entire financial sector.
It emerged that the US government is to begin its planned “stress tests” of banks’ financial health, which Wall Street executives told the Financial Times could start next week.
Gold prices broke the $1,000 a troy ounce barrier, the highest level in 11 months, as investors shunned risky assets for the relative safety of bullion amid renewed fears about the health of the global financial system.
“Gold investors hear ‘trillions and trillions’ and ‘bail-out after bail-out’ and look at gold as the only asset good for capital preservation,” said Tom Pawlicki, of commodities brokerage MF Global in Chicago.
But is it really the fear of nationalization per say or the fear the banks are insolvent?
Is there any wonder?
I've been a Gold-Hoarding-Seditionist(tm) for many years now. Every time I bring up gold there are always plenty of people who are ready to criticize the very concept. The contempt for gold (and silver) has gotten to the point of being irrational. Gold is entering its 8th year of a bull market, yet few in America are interested. The average American actually owns less gold today than he/she did 4 years ago.
Can you imagine an 8-year long bull market in stocks or bonds being ignored by people?
I can understand why Wall Street hates it - they can't profit from it. I can understand why the government hates it - they can't track it because it isn't attached to debt.
But why would the Main Street hold it in contempt?
At $1000 a troy ounce
Is it worth spending my vacation panning again?
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Maximum jobs, not maximum profits.
no but it is worthwhile
to run TV ads 24 hours a day trying to convince stupid and desperate people to put the family jewels in an envelope to "get some money" for that "oh so useless gold" that is just "laying around the house".
In Oregon
I know of at least 4 communities that openly offer "old fashioned" prospector-tourism, to various levels (from the "free panning" on the Illinois tributary of the Rogue to "full scale gold mining" with $120/day rental on a modern carpeted riverbank dredge that you "clean yourself so that you get every last flake"). Seems to me at these prices, one *might* just pay for a very luxurious vacation with 2 days of work in the middle.
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Maximum jobs, not maximum profits.