There is only so much safety in gold but it looks like the gold standard is back. I don't know about you but something isn't right. I had supper with a top hedgie from San Francisco and he was confused. The fundamentals are so good. Apple and Microsoft have enough cash to stop the debt problems Obama faces. Dividend yields are whacko. There is still demand for many products and services. Cash is sloshing around (except in the coffers of governments). The problem he says is tax. It is going to have to go up considerably but as Laffer shows, higher tax doesn't mean more revenue. It is often less. There needs to be a redistribution or we will have Google et al owning governments.
So the markets tank. Again. Any news that is negative is deemed bad news. It's a signal. Something big is coming. Not sure what but it could make Lehman look like a walk in the park. I hope not. The end of the Euro? Moodys moves the US to junk? Earthquake in California?
And its pissing down with rain in London.
Depression, recession, its all bloody gloomy (telegraph)
Chavez blings up (bloomberg)
Dow to be back below 10,000 very soon.