Top News Stories and the latest Commentary

December 14, 2007 by david.pennington.

FITCH DOWNGRADES $29 BILLION IN SUB PRIME LOANS 

http://biz.yahoo.com/ap/071121/fitch_cdo_ratings.html?.v=1

A PERFECT STORM FOR GOLD - SUPPLY DOWN, DEMAND UP

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/15/bcngold115.xml

MORE FUEL ADDED TO FIRE OF FINANCIAL CRISIS
 


Here comes more. Today please add CLOs (securitized corporate debt) to the disintegrating financial system. This additional piece of over the counter paper weapons of mass financial obliteration is securitized corporate debt. Markets haven’t examined the biggie out there and that is the combination of auto lending to anyone over 50 degrees F. and the ubiquitous credit card debit that has ballooned by being used to pay for gas and now heating oil.
 


The size of the mountain of over the counter derivatives is above $450 trillion dollars. The size of the world economy is slightly above $145 trillion.
 


What do you think the risk factor is on $450 trillion worth of garbage paper, from CDOs, CBOs and now CLOs?
 


Is it $2 trillion like the London Financial Times said yesterday; is it $20 trillion or maybe even $200 trillion?
 


The thermometer of this meltdown is the dollar and inversely, gold.
 


Keep this axiomatic concept in mind. The jumping up and down of a thermometer cannot and will not make the mess cooler. It will only make gold go higher because it presents a false face of the systemic financial collapse. Operation “White Noise” is an effort to break the thermometer so the brainwashed many do not get alarmed. The alarm, just like this day in Asia and Europe, will ring and that ring sounds to me like $1050 - $1650.
 


In the 70s gold shares lagged into the first cross of $850. Gold shares led gold on the next rise by a huge margin.
 


This is it!
 


Have you made the simple moves to free your assets from intermediaries? 
 


Do you hold paper certificates of your long-term share investments? 
 


Have you ordered your coins delivered? 
 


Are you still investing via Internet financial entities? 
 


Do you have balances anywhere in excess of $100,000? 
 


Do you trust FDIC to function perfectly if there is a significant call on it from many depositors of many banks? 
 


Do you trust SIPC to guarantee your cash and security housed by many with Internet financial entities? 
 


Are you alert to the many scams breaking out in the silver and gold arena? 
 


Have you done anything to protect yourself, an activity easily reversible, and at a cost called chump change?
 


This is it. ladies and gentlemen, prepare to defend yourselves.

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