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Odds 'n Sods:
I noticed that spot
silver dropped a full dollar per ounce on Tuesday, and spot gold was
down about $30 per ounce--both moved by short term gains by the US dollar
in international trade. Buy on "dip" days
like these! As I've said before, I think that gold will outperform silver in
the next run-up. Get
out of dollars and into tangibles. But remember what Doc Sweeny
calls The Five Gs. (GGGGG.)
Get right with God and then acquire your guns, groceries, and ground before you
buy any gold. Be advised: You can't eat gold, and Krugerrands make very expensive
projectiles for a Wrist Rocket.
o
o o
We just got alarming news that the London Interbank Offered
Rate (LIBOR) rate spiked this week, tripling to an
all-time
high of 6.875%. The LIBOR is the benchmark rate at which banks loan
money
to
other banks. The spikes illustrates the absolute peril that the credit collapse
has
created, and the unprecedented level of distrust between banks.
It
will be interesting to see what this higher cost of inter-bank borrowing has
as it trickles down to credit card interest rates and Adjustable Rate Mortgages
(ARMs). It is conceivable that monthly ARM payments could double. The
global credit market
has
just suffered the equivalent of a massive myocardial infraction. Dr. Bernanke
is greasing
up
the
defibrillator paddles now...
o o o
Eric found this at The Globe and Mail: Credit
cards to ‘implode:'
analyst
o o o
Gary flagged this Time magazine op-ed piece: Let
Risk-Taking Financial Institutions
Fail. Gary's comment: The derivative threat has finally hit the [mainstream]
news.
I thought that you wouldn't be surprised, since you saw it coming.
o o o
Reader "Stamps" mentioned a
nonprofit organization that will send you free seeds with just a self addressed
stamped envelope. They pick randomly from
what they have available. Most are seeds that people harvest and donate
to this project.
