Curried Wealth Building
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October 15, 2008
Issue 15  -  Where We Are
 
Note:  Due to time constraints I am no longer going to be linking my references.  This is just too time consuming and since I don't make (and don't want to) any money with this, I am going to stop this VERY time consuming task.  If you need a reference, please email me at currymagic@gmail.com .  I just want to get the data up as quickly as possible. 
 
The markets are obviously entering a very volatile period. I believe the stock market is in a bear market and has further to fall. The election is having an effect also. Don’t think for a second that the intervention is not about the election.

From urbansurvival:

"In Michigan: Gas in August 2004 was 3.16 and by Oct that year is dropped to 2.16. This year in Aug/Sept it was up to 4.00 plus, and today in Oct it's 2.99.

Must be coincidence, I'm sure."

The take down of commodities will end and their rises will resume. The talk of the commodity "bubble" is just that, talk. There has never been a bubble that had low supply levels. Remember how many tech stocks were started in 1999-2000? That was a HUGE supply of stock and limited buyers so it was destined to crash. There are record LOW supplies of many commodities. Silver is impossible to get in large quantities and yet the price is lower. To buy a ton of silver, which is not a great quantity, (approximately $250,000) now requires a wait of 14-16 weeks delivery time. These anomalies cannot last and will resolve to the upside.

The main reason for the sell off in commodities is hedge fund liquidations. Hedge funds have had one of their worst, if not the worst, year ever. One can only pull their money out of them at specific times, typically quarterly, and in some cases only yearly. This leads to huge withdraws at the worst possible times. The hedge fund must then raise money to refund and therefore must sell what they have at fire sale prices. This is currently happening in the commodity sector, driving prices down way below where they would otherwise be trading. This will end. In fact, the open interest in gold futures (one way to bet on the price of gold) is down to levels last seen in 2006. This has basically taken most of the "hot" money out the market.

Bottom line is that gold and silver are selling at artificial levels which will eventually reflect reality.

The announced bailout plan for the first $250 Billion dollars is, as predicted, a nice payoff to banks. They are "forcing" the banks to take this money. At the same time, one of the orphans, who supposedly needed this money posted a PROFIT! How do we justify giving "troubled" banks money who then proceed to show a profit?. Scandalous and yet the media say NOTHING. "They know what they are doing," they say. Well guess what, they didn’t and they don’t. This money is going to be STOLEN from you and given to someone who, believe me, doesn’t need anymore money. These guys are out of control. Our system is on the brink and yet CNBC hoots and hollers any time the Dow clicks up 50 points. They are asleep at the wheel. THEY are the gatekeepers. The truth tellers supposedly, and we get NO investigation, NO questions, NO alarms. Naked short selling runs rampant and nary a word, except for Cramer who is generally considered a buffoon and blow hard.  In a year’s time when their ratings have descended to near zero, they might ask themselves why.

Please get some gold and silver before it’s too late.