Trading was tempararily shut down on futures trading yesterday, talk of shutting down nyse was also buzzing and now fed wants to lower interest rates by .1/2 percent! Greenspan has also made statements that we probually cannot avoid a major economic reccesion at this point. Folks they know we are in serious trouble and they are in panic mode because all the finiancial trickery they have done so far such as the bailouts are not working. Confidence is at an all time low and boy does it show. The general feeling is that we are in for a very rough reccession even though its very hard to find one of the talking heads actually saying we have been in one for a coule years. The 2 major problems with all the solutions put forth
1- The USA's economic engine (jobs) doesnt exist. We are losing jobs by the thousands and job growth is growing at a heafty rate. Even if there is easy money to get in the form of a loan at a killer rate people need a job to pay it off right?
2- printing money when ever times get tough- this produces inflation due to the extra fiat currency being put out in the world. Inflation is really bad when there are no jobs out there or as it is currenlty, your employer does not pay you with increase or bonuses to keep up with the inflation rate which technically is at 10%.
Investing in gold in times like these assures you of at the least holding your savings value and at best growing that savings as gold prices rise. Fact: Gold prices tend to rise with inflation.
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GOLD AS AN INVESTMENT DOES NOT GROW. AS YOU HAVE STATED IT KEEPS EVEN WITH INFLATION. GOLD NEEDS A REASON TO RISE, ( ECONOMIC CONDITIONS NOW MAY BE A GOOD REASON ) BUT WITH A LONGER VIEW GOLD WILL SETTLE DOWN AND JUST KEEP PACE WITH INFLATION. IF YOU CAN GET IN AND OUT WITH THE RIGHT TIMING AND LOW TRADING COSTS YOU MIGHT MAKE MONEY BUT THIS IS NOT ALWAYS AN EASY THING TO DO.--D.A.D.--
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