Were are possibly on the eve of congress voting to pass the revamped 700 billion dollar bailout package. The dow made a minor comback but still very hesitant. The credit industry is basically frozen and not as willing as it was to lend to anyone with a pulse. Gold prices have risen in this mess which shows gold is the one true investment that everyone turns to when other financials go bad.
There is one question we all should be asking ourselves before this bailout happens, what got us into this mess? Answer-All of the "easy credit" that was put out there to everyone so they could purchase all the things they could want and live beyond their means. It brought americans a false sense of owned wealth that they never really had. Ultimately they either would have to pay it back with high or ever increasing interest rates or lose what they bought due to foreclosures and reposetions. We never had the wealth is the key here to live the lives we were living. Salaries were not keeping up with the rate of inflation yet our appetite for toys grew.
The inflation was rising due to the decreasing value of the dollar and the easy credit and loans were put out there to try and pump the economies engine which was failing. Job losses were growing and inflation was too. We should have never been taking off the gold standard which would have kept inflation in check. If this bailout package passes inflation will climb even higher making the dollars we currently have worth less. In these dire times gold investment is a necassary means to preserve and increase your wealth.
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