Investors....come in please!

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Yeah, seems like the short/uptick rule removal would have to Pablo. Probably dosen't matter in the long term, but from day to day it has to pull markets lower. You know, I'd even forgotten about trading curbs until they got triggered a few days ago. Volatility has definitely increased.

These big up days are exciting, but there dosen't seem to be any carry through. They're followed by big down days. The Dow transports are going through a bad time now, and they're a precurser of the market as a whole, since all products have to be moved from the factory to consumer. High fuel costs are part of it. Add in the morgage melt-down, and I see lower company profits in Q4.

I could be wrong though....
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No, Pablo, the reason is elsewhere. The Fed has lost the confidence (in all meanings of the word) because now any its step will lead to a deadlock and the market thinly feels it. Alan, despite knowing well the situation and all possible consequences, he was always trying to inspire hopes into investors. "We are around the corner" and this was enough investors would jump into a black hole. Well, he still had a time before everything would start to collapse. Ben cannot repeat the same tales because the environment has changed a lot. So what's now ? The Fed didn't yet decide what it would be less harmful for the US now: to save stocks or to save US$. But both ways lead to a deep recession, the great depression II and World Crisis. It's too late to do something with Yuan: it will be revaluated itself in a New Era. Amero will not help because for Canada it will be to heavy to endure the US and Mexico weights. What remains ? It remains a war as the last solution of all economic problems. We may still see how Turkey will burst the situation and draw Iran into the conflict. Think no need to clarify who will establish a full control over oil and gas region. But this is too dangerous way.
 
Primus may be on to something. There are indicators of a slowing European economy. If it, indeed, does slow, the European Central Bank might be tempted to lower interest rates. No need for the Fed to defend the U.S. Dollar if European interests rates are falling.
 
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Primus may be on to something. There are indicators of a slowing European economy. If it, indeed, does slow, the European Central Bank might be tempted to lower interest rates. No need for the Fed to defend the U.S. Dollar if European interests rates are falling.

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Classic! I mean we may be considered the sh#thole of the world by Europe and Asia, butt if we get so weak we don't buy their junk....
 
No doubts European economy is slowing down and in fact is no far in better shape than that of the US. The only difference is its better finance state in general. As for interest rates, ECB is also on a crossroad and hesitating because of increasing inflationary pressure. However, the EU economy is suffering less because raw materials are quoted in US$.

Pablo,
Don't take everything personal. I never heard somebody is claiming the US is a sh#thole. We are all in this hole. And people worry about their future and want to understand what to do. But the future is far from to inspire an entusiasm. How the situation may be developped soon is well discribed in a commentary of William Buckler from the Privateer:

If an accelerating outflow of funds now held by foreigners inside the US were to start, it is a near certainty that at some point in this accelerating outflow, the US would act to institute a version of FOREIGN EXCHANGE CONTROLS. In effect, these would prohibit funds owned by foreigners from leaving the US. For all those who had lent to the US, that would be a global catastrophe.

The recent freeze-up in the global interbank payments system would be small potatoes in comparison because the flow of money across the world's borders would also start to freeze up. Many smaller nations in this bind would promptly institute their own national versions of foreign exchange controls and some of them would simply seize American assets inside their borders and sell them in their own local markets, using the proceeds from the sale to compensate their nationals from the losses they had suffered from having their money blocked by the US. International trade and air travel would come to a shuddering halt. Factories beyond number would be standing still because required foreign components would not be arriving. Economically, most nations would be thrown backwards to function upon the productive means presently existing inside their own borders. Deep recessions and outright depressions would follow.
 
Nothing taken or given personally – my comments if aimed, are aimed primarily at China in particular and their insults. Lest they forget who their primary customers are. I would just like people to realize the USA is probably the most open country to incoming goods, yet we hardly expect current reprocicity – just the promise of future free trade. Yet the China leaders blatantly insult their largest customer. But that’s not my primary beef – it’s with people buying into China remembi /markets because the USA as a country (not the dollar) may tank……seems like faulty reasoning to me! Don’t get me wrong – I invest internationally – a LOT and have made a lot on the dollar’s fall.
 
I am looking at putting maybe 20% of all my "Safe Money" in FXC (Canada Dollar) , FXE(EURO), FXA (Australian Dollar). My only problem is the Currency Share Trusts may be as much prone to collapse as the U.S. Government.

Hoping Gold falls at some point. I'd love to buy a lot more.

Maybe food stuffs are a good idea.
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The problem with other currencies - yeah they look better when the US dollar gets weaker.....but in a true collapse - they indeed will be useless too. I think the loonie and euro are over bought right now. Maybe the ozzie will move a bit. You mean there is no currency share trust for the renmembi?
 
Looks like Gold Cartel just lost one of its solders: Bank of America Think this is a lesson how dangerous to play against the market even on the side of Gold Cartel.

Gold Carry Trade. Gold loans

According to different estimations central banks have leased and swapped from 10000 to 15000 tons, e.i. about 1/3 to 1/2 of total world reserves. But this gold is already sold. It means that central banks don't have gold they are reporting. The volume of these operations is about three times more than that reported by Gold Fields Mineral Services and World Gold Council.

Quite recent example: according to report of Bank of Portugal 80 % from 546 tons considered as national reserves were swapped and leased. This is 10 % more than menionned by Jay Tailor in his article Portugal's gold is missing

It's also quite symbolic that IMF has recommended central banks to report not only gold in stock, but also gold that was leased, swapped and used as deposits. And seems results have not kept waiting. The discovery by James Turk of the Freemarket Gold & Money Report that, as Turk puts it: "the U.S. Treasury quietly made a subtle change to its weekly reports of the U.S. International Reserve Position, which includes the U.S. Gold Reserve. This change was first made May 14 ... It says the U.S. Gold Reserve is 261.499 million ounces and importantly, that the gold is now reported 'INCLUDING GOLD DEPOSITS AND, IF APPROPRIATE, GOLD SWAPPED' (emphasis added).
 
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I just bought some FEXPX; with the outlook that the dollar is still going to continue falling off a cliff - todays rate cut and likely one or two more rate cuts, I think this one should do well in the next several years.
 
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I just bought some FEXPX; with the outlook that the dollar is still going to continue falling off a cliff - todays rate cut and likely one or two more rate cuts, I think this one should do well in the next several years.

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I've held FEXPX FIDELITY EXPORT & MULTINATIONAL since the 1990's (it used to be called something else "Export" only or somesuch) I just buy new shares with dividends and cap gains. It's been a pretty good fund.
 
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