Adrian Day’s reputation for discovering big winners adds credibility to the global investing pioneer’s insights, which he is sharing with The Gold Report via excerpts from recent articles in Adrian Day's Global Analyst. Acknowledging what trying times these are for investors, in this first segment of a five-part series, Day discusses what led to the current economic crisis and how he sees Washington’s $700 billion (and counting) bailout playing out. Full Story
By: By Olivier Garret, CEO Casey Research – The Casey Report - 17 October, 2008
In the last few weeks, it has become clear that the current financial meltdown is not our usual, run-of-the-mill crisis. It’s supersized, inexorably linked to the rest of the world, ruled by chaos, and precariously perched atop a mountain of debt. ”What makes this crisis different from some of the earlier ones,” says IMF Historian James Boughton, “is that the interlinkages among financial institutions are much greater now than they used to be.” Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 17 October, 2008
In an amazing feat of revisionist history, somehow Hoover's interventionist policies have been completely forgotten. It is taken as fundamental that his inaction led to the Depression and Roosevelt's "heroics" got us out. Unfortunately, since we have learned nothing from history, we are about to repeat the very mistakes that lead to the most dire economic circumstance of the last century. Full Story
You can't blame the king of Persia for printing up money no one could trust. His neighbors in China were doing the same, after all, and with the same inevitable consequences, too... Full Story
By: Bill Bonner & The Daily Reckoning Crew - 17 October, 2008
-Who's afraid of a big, bad financial meltdown?…the problem with free enterprise… -Economics is simple: the mistakes don't just go away if you deny them…if you don't bother to save, you have no savings to fall back on… -Taking the good with the bad…are you a 'C player'?…heading to Buenos Aires to 'grow cabbages'…and more! Full Story
By: Dr. Ron Paul, U.S. Congressman - 17 October, 2008
Dr. Ron Paul, the Champion of the Constitution & currently the world's most prominent representative of Liberty talks on CNN American Morning (17th October). Topics addressed include; Inflation, Death of the Dollar, End of Monetary System. - "It's an immoral system" - 'Can't trust McCain or Obama' - 'We're going to suffer' Full Story
It is said the market can sniff out prospective problems and price itself accordingly. If so, then someone needs to get this dog some nasal spray, lickedy-split! The deflation scare currently hovering over the entire market, particularly in the metals and commodities sectors, has been brutal. But the key question today is whether this “scare” will evolve into a genuine deflation threat to the US and the world? Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 17 October, 2008
The brutal stock markets have been exceedingly hostile to long-term investors for a couple months now, crushing all stocks regardless of their individual fundamentals and merit. And in the last couple weeks, even speculators have been getting slaughtered. This frenetic hyper-volatile environment is making short-term trading nigh-on impossible to execute successfully, even to the short side. Full Story
Clearly, the Bailouts and Interventions of recent weeks by the U.S. Fed/Treasury/Central Bankers have facilitated an even greater concentration of power in the private-for-profit U.S. Federal Reserve, key Central Banks, and Favored Financial Institutions. Clearly, too, the U.S. Taxpayer (and, indirectly, many investors) is on the hook for a few trillion dollars in additional debt burden. The only remaining question is “how many trillion?,” as Deepcaster and many other commentators have pointed out. Full Story
By: Jason Hommel, Silver Stock Report - 17 October, 2008
The 125 bars sold in my last auction, that closed yesterday on Wednesday, were sold for an average price of $15.56/oz., and, at the time, silver was $10.33, so the premium was $5.23 per ounce for Engelhard bars, a premium of 50.6% over spot. The 26 separate auctions were won by 16 different bidders. One person won 70 bars in the auction! 95% of the silver was shipped out today, to everyone whose wire came in. Full Story
By: David Morgan, Silver Investor - 17 October, 2008
No one likes to be a prophet of doom, but the simple truth is that silver is the world’s money of last resort. Should a severe economic collapse occur, leaving paper assets worthless, silver will be primary currency for purchase of goods and services. (Gold will be a store of major wealth, but will be priced too high for day-to-day use.) Thus, every investor should own some physical silver-and store a portion of it where it’s accessible in an emergency. Full Story
By: Joseph Brusuelas, Merk Investments - 17 October, 2008
Going forward we expect the consumer to begin increasing her rate of savings over the next year as individuals adjust to a diminished employment and income picture. Reduced demand for goods overall and imported goods in particular, will hit the retailers quite hard and curtail overall growth. Full Story
The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness. The colossus of JPMorgan is a monster, a predator, nurtured by pond scum. Full Story
Markets are cyclical and one day the sun will shine brightly on financial stocks, technology stocks and the like again. But in our opinion this recent drop in the paper markets is not a simple pull back and “buying opportunity”. Instead we believe this “correction” is a full blown “crash” that will take many years to recover from. Full Story
By: John Browne, Euro Pacific Capital - Senior Market Advisor - 17 October, 2008
The truth is that these enormous bailouts enacted around the world, most notably in the United States, have done little or nothing to tackle the enormous deleveraging that is driving us into a serious recession and, if badly handled, a depression. Full Story
As one puts some effort into trying to understand the plutocrats and how they manipulate and control most of the world’s financial markets (certainly in the US, Europe, Africa [South of the Sahara] and parts of Asia), it seems inevitable that some conclusions can be developed on the probable direction of the markets in the future as long as they are subject to the influence and control of the plutocratic masters. Full Story
By: Richard Daughty, The MOGAMBO GURU - 17 October, 2008
I don't know about how they do it in Dubai, but here in America, we destroy our money by creating more and more of it, which I measure with Total Fed Credit, which is the magical stuff that appears in the banks as an increase in credit available for lending. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 16 October, 2008
-Paulson's desperate measures to save his friends on Wall Street…the fix is in - but the market won't stay fixed… -Perhaps we needs this meltdown…selling your soul to save the economy… -Outlook not so good for profits and jobs…biggest drop in retail sales in three years…crude oil under $70…and more! Full Story
Given the financial economic world meltdown, some die hard Gold Bulls have to be wondering what it takes or will take to get Gold to move up. What we now know is that the current world credit crisis is not the situation it will take to do so. That leaves inflation. My guess is that once inflation comes back, Gold will bottom and move up and over $1000 an ounce. Another possibility is the failure of the Bailout Plan that is being implemented in practically every major world economy today. Full Story
By: Dr. Ron Paul, U.S. Congressman - 16 October, 2008
It has been long understood that our federal government is going deeper into debt, consistently raising the debt ceiling and demonstrating no fiscal restraint. In recent years, debt ceiling increases have been placed in “must pass” legislation as a means to guarantee that Republicans as well as Democrats would vote for them when Congress was under Republican control. Full Story
All I am quite certain about is that the world has changed in the past two weeks, and that hoping to get back to ‘business as usual’ is totally unrealistic. The late 2000s banking crisis will now go into stages two and three, and we must be prepared for some nasty shocks along the way. Full Story
Watch the premium on 90% and 40% US silver coins, first over and above the fraudulent COMEX price, and then, after COMEX defaults, over and above 100 ounce silver bars. That premium has been zero or negative until very recently. That premium is the "monetary" premium in silver. As this plays out, the premium on 90% and 40% silver coins will greatly exceed the premium on 100 ounce silver bars. These old quarters, dimes and half dollars will be the people's money. I don't see any other way out of this deep dark place. Full Story
The US bail-out, European unity, Gordon Brown's sainthood, every new mortgage application...all these things now look incredible – quite literally unbelievable – against the stark backdrop of no credit, no leverage today. But nothing lacks credibility like trying to make fast money in finance right now. Full Story
What a week! What a month! S&P 500 started around $1,250 a month ago, was as high as $1,200 at some point two weeks ago, no one had ever imagined it could drop below $850 last Friday. I gave out an $800 target in August last year at one of my old articles, which S&P 500 is on its way to test now. Full Story
By: Richard Daughty, The Mogambo Guru - 16 October, 2008
This guy has now won a Nobel Prize, which is now just another award that used to have some prestige, but which is now - as the prizes to Al Gore and Krugman attest - just another filler blurb in the newspaper ('More Nobel Prizes awarded to miscellaneous friends of the Left'). Full Story
By: Rick Ackerman, Rick's Picks - 16 October, 2008
Anyone who was worried that the stock market had taken leave of its senses should have felt greatly relieved after yesterday’s 733-point drop in the Dow Industrials. Added to the plunge from the previous day’s fleeting high at the opening, the Indoos have now given back 1264 points of their ill-gotten, 1900-point gain from Monday’s low. Could it be that Wall Street isn’t so crazy after all? Full Story
By: Bill Bonner & The Daily Reckoning Crew - 15 October, 2008
-Finance has replaced weather as the ultimate small-talk topic…the Committee to Save the Economy… -How do you weather this storm? Get out your galoshes, dear reader… -Ronald Reagan must be spinning in his grave…getting in the spirit of saving money…and more! Full Story
By: Bob Chapman, The International Forecaster - 15 October, 2008
To err is human. To really foul things up requires a computer. But to create a catastrophic disaster of epic proportions, just turn a bunch of rocket scientists loose on Wall Street. The mere thought of it makes our hair stand on end. Question: What do you get when you mix rocket scientists with black boxes on Wall Street? Answer: A massive cluster-you-know-what. Full Story
The 936 point rally on Monday will not be the only rally in this falling market. There will be more. There will be also more lows. We have not yet seen the bottom. We’re not even close. That’s not the fat lady singing that you hear. It’s the sound of your stock broker throwing up. Full Story
Bond markets have started heading south despite the falls on Wall Street - not the normal reaction and an indication that this huge market has begun to sniff its biggest enemy: inflation. This is odd because deflation of assets - from houses to stocks - is the big issue now. Could this fall in bonds indicate that after this period of deflation, the multi-trillion dollar attempts to rescue the banking system will knock deflation concerns out of the picture and put inflation back on the map? Full Story
Who is to blame for this extraordinary crisis? Arguably, it is the most personal of the many crises visited upon us in my lifetime and probably the most far-reaching since, as of this morning, it had engulfed most of the world. Congress and the American people are looking for a "villain" or "villains" -- someone or some group that can be tagged with the blame for what has happened to the world economy. Full Story
By: Richard Daughty, The Mogambo Guru - 15 October, 2008
I don't know why anybody is surprised at this, as, according to the novel-yet-laughably-stupid theory propounded by the financial services industry of always 'putting money and equity to work', you are SUPPOSED to have zero excess cash! Full Story
By: Rick Ackerman, Rick's Picks - 15 October, 2008
Today’s commentary features the unhedged opinions of Karim Ghaidan, a subscriber whose serene trading style, disciplined approach and expansive point of view have gained him a devoted following in the Rick’s Picks chat room. An institutional trader with nearly two decades of experience in the major leagues, Karim has been consistently ahead of the curve with his predictions. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 14 October, 2008
-America is up to its old Rooseveltian ways…the U.S. government has already bought into 9 major U.S. banks… -Europe has come up with its own bailout plan - but where is the money coming from?…Chris Mayer has surveyed the wreckage, and found two new buys… -A bounce in the bear market is not cause for celebration, it's cause for selling…it's time to downsize, and relax a bit…and more! Full Story
By: Jason Hommel, Silver Stock Report - 14 October, 2008
The price manipulation at the COMEX is so severe, that it has now created the profit incentive to create a free market in silver, through this auction, in order to arbitrage between the two markets, by buying in one, and selling to the other. Full Story
As all of the world’s currencies weaken in tandem with the U.S., since they are all tied to some degree to that ailing foreign reserve standard, gold will slowly at first, and then suddenly, surge into new record territory. These are the events that have irrevocably set the stage for $2,000 gold, and though many skeptics may marvel at the audaciousness of this sentiment still being echoed after all these years, it is now imminent and definite. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 14 October, 2008
We are experiencing the most severe financial crisis since 1929. It hurts. There appears to be no relief in site. What began with mortgage defaults has now spread to the derivative markets. You will hear the term “credit default swaps” by the hour as this mess deepens and worsens. What are credit default swaps? Full Story
Goldsmiths, Parts X, XX and XXI, discussed the coming plutocrat planned deflationary collapse in America. Right now, it looks like things are on track. But instead of achieving a deflationary fall that the nation can recover from, I submit that the Rothschild team of fat cats will instead bring on a hyperinflationary bust and depression which will be more along the lines of what happened in Weimar Germany in the 1920s. Full Story
For believers in liberty and sound economics, it has been a series of devastating weeks. The crisis of fiat money, long foretold by the Austrian School, finally came, but there turns out to be no great satisfaction in saying, "I told you so." Full Story
In conclusion, The G7 governments are just now getting the picture of the enormity of the problems their policies have fostered. Decades of easy money, deficit spending, deindustrialization, rising taxes and misreported inflation are now being paid for. It is not over by a long shot and the money printing will go to another level from here as outlined above. The Governments of the G7 on all levels are bankrupt “morally and fiscally”, as are so many of their citizens and it is set to continue. Full Story
The US bond market was closed yesterday for Columbus Day, while US stocks enjoyed their biggest rally since the stock market crash in 1929. That ought to be enough to caution anybody who thinks the problems are over in capital markets - after the 1929 rally markets lurched lower for several years. Full Story
By: Richard Daughty, The Mogambo Guru - 14 October, 2008
Equally weird is that gold is also paradoxically going down in price, even though the dollar is going down in buying power because inflation is higher than the yields the dollars can buy, and the only strength of the dirtbag dollar is that it is appreciating against other currencies, but it is only because those other currencies are a worse bunch of dirtbags! Full Story
This widely held notion that loose credit is the key factor in the collapse of financial bubbles is perhaps best summarized in the title of a forthcoming book entitled “Bailout Nation: How Easy Money Corrupted Wall Street and Shook the World Economy.” The belief that easy money equals speculative boom followed by inevitable bust has become so firmly ingrained that it’s almost impossible to challenge it in the popular discourse. Full Story
By: Mary Anne & Pamela Aden, The Aden Forecast - 13 October, 2008
So much has happened this month, where to begin? It’s been a month to end all months with one monumental crisis following another. At times, events were moving so quickly it was hard to keep up. Many analysts we know stayed up all night, several times, as developments and markets spiraled out of control in what’s being called a financial tsunami. Full Story
On Friday, October 10, the price of silver crashed, falling almost 25% from its price level 24 hours earlier. It is down roughly 50% from where it traded a few months ago. While a broad array of markets fell sharply in price that day and over the past few months, from oil to gold to grain to just about every commodity, none fell as sharply as silver. As regular market observers know, this is usually the case. I intend to explore why this is usually the case and what I think readers should do about it. Full Story
As you know from yesterday’s brief message I had a very bad feeling about what was coming based on the tentative title of today’s piece, and sure enough Awaiting Armageddon appears to have been right on the mark in terms of outcomes in the equity markets, but certainly sooner than anybody had expected. And although I was not quite sure if precious metals would join this party concurrently or not, I did have my suspicions that were confirmed in yesterday’s bloodbath, with not just the shares being dragged down due to liquidity fears, but also, the metals themselves. Why did this occur? Answer: Because in essence what we have here is a ‘deflation scare’ that could quickly turn into the real McCoy if growth rates of the M’s do not begin to accelerate upward immediately. Full Story
By: Bill Murphy, Le Metropole Cafe - 13 October, 2008
This was to be my title for today, but the above was too compelling based on what is sent to me on a daily basis on the growing restrictions regarding gold availability at the bullion banks around the world…
Time To Take Delivery of CBT/COMEX Gold/Silver Futures Full Story
The G7 met over the weekend with the hope of re-instilling confidence in global financial markets. The communiqué was the standard "we're prepared to do whatever is necessary" message. Of course no details were provided, but what is abundantly clear at this point is that they're prepared to throw as much money at the crisis as they possibly can. Full Story
By: Steve Saville, Speculative Investor - 13 October, 2008
Further to the above, we think it makes sense to prepare for a very lengthy period of slow, or no, economic growth. In general terms, this should involve strengthening one's balance sheet. More specifically, it SHOULD involve staying (or getting) out of debt and COULD involve building up exposure to gold and income-producing investments other than bonds (energy trusts, for instance). Fortunately, a good balance-sheet-strengthening opportunity is likely to present itself over the next 6 months because the immediate crisis will probably soon give way to a multi-month stock market rebound and the ILLUSION that policy-makers have managed to ignite a sustainable recovery. Full Story
From the author of this video: "Inflationary Holocaust. 'Legendary investor Jim Rogers warned during a CNBC interview this morning that global central banks are creating the environment for an inflationary holocaust by their ceaseless overprinting of currency, a measure that isn't even successful in stabilizing the stock market. Full Story
Imagine a country such as Venezuela announced that it was bailing out an investment bank, then just days later said it was nationalizing its mortgage industry, and then just days later that it was bailing out its biggest insurance company, and then just days later its government pledged 700B$ to inject into its failing banks, and then just days later its stock market fell 20%. Would you feel comfortable having your money invested in such a country, in its stock market, in its bond market or in its currency? Full Story
The danger, according to deflationists is that no matter how much ‘money’ global authorities throw at the problem, a black hole created by decades of credit/debt (as the primary macro-economic fundamental) is going to suck it all up with a near infinite appetite to correct the mess made by a system in its death throes. Full Story
By: Peter Schiff, Euro Pacific Capital - 13 October, 2008
If you are a mortgage holder who is either struggling with crushing payments, bitter for having overpaid for your home during the bubble, or who has extravagantly refinanced when prices were rising, the government's landmark $700 billion bailout package has an important message for you: stop making your mortgage payments . . . immediately. Furthermore, if you believe that with some planning and sacrifice you may be able to meet your mortgage obligations, the government's message is clear: relax, don't bother. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: Arch Crawford Full Story
By: Bob Chapman, The International Forecaster - 12 October, 2008
The heart of the current crisis is the quadrillion plus derivative market. Roughly half of these derivatives are listed on exchanges, but the other half are on the totally unregulated, totally opaque, poorly documented and mostly naked (no reserves or collateral given to secure performance) OTC derivatives market. Full Story
As the precipitous drop of the Dow Jones index of industrial stocks to the 8600 level on Thursday shows, the $700 billion bailout is an exercise in futility. The rescue effort administers one wrong medicine after another. Shunting rotten assets to the balance sheet of the central bank is not the way to go. Consolidating banks through forced mergers is not the way to go. Cutting interest rates is not the way to go. These measures make the problem worse, not better. Full Story
This article responds to a request to explain the recent strength in the dollar, by which I think was meant the dollar index. The following discussion explains some of the longer term factors that I think are important. This provides perspective on the recent movement. After that, the discussion turns to the question of gold prices. Full Story
By: John Mauldin, Millennium Wave Advisors - 12 October, 2008
I have been writing for almost a year that the next shoe to drop on US banks would be commercial construction lending. Today we look at some hard numbers. We look across the pond to sort out the problems in Europe. We look at the consequences of the losses stemming from Lehman. Then we look at one of the more serious consequences of the banking crisis, one that will bring the crisis home to you. Finally, we look at what the various governments of the world must do in response. Full Story
By: Joseph Brusuelas, Merk Investments - 12 October, 2008
The week of October 13-17 will see perhaps the most important week of macroeconomic data and Fed talk of the year. The weekend of Oct 10-12 will see the G-7 meeting in Washington where finance ministers will attempt to formulate a common policy to stem the damage to global financial markets. We expect them to consider guaranteeing all term lending at the meeting. Full Story
Now we can put two and two together and see at once that when the cabal made its plans, last year or whenever, the needs for huge new paper sales to foreigners and a strong dollar were seen at once. What has happened, the past couple of months, are things which were preplanned and scheduled long ago. This backdrop on the dollar proves manipulation and preplanning conclusively. Full Story
By: Richard Daughty, The Mogambo Guru - 12 October, 2008
Purposely causing inflation! This is insane! This is beyond insane! This is the work of the anti-Christ! The purpose of a central bank is to prevent inflation, and to make sure that inflation is always, always, always zero! Full Story
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