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Markets set to open down - hard

Friday, October 10, 2008, 9:12 AM

Dow futures are sitting at -418, or nearly -5% from their close yesterday.  SNP futures are in equally bad shape.

The world markets are having an even worse time of it.

I now raise the prospects of a banking holiday to being a world-wide event.  I will not be even the slightest bit surprised if Monday is the beginning of a market holiday. Followed quite possibly by a banking holiday.

What I think is happening here is that a derivative nightmare, long fretted about on these pages, has finally arrived.  It is impossible under current market conditions to know who is bankrupt and who is merely illiquid.

Through it all I have to give a golf clap to the central banks, who have done their very best to keep the price of gold and silver capped in an attempt to keep people from fleeing their defective paper currencies.

Rumors are swirling across Europe that the central banks/banks are considering banning the sale and/or ownership of gold.   We know that physical shortages exist for retail gold and silver in the US, Canada, France, and Germany.

Some banks have already said that they do not have any more for sale...yet the "official" price comes under continued attack.

If you can find any, and have not yet gotten any, your window is rapidly closing.  I checked all my favorite gold dealers here in the US and I've never seen such a pronounced shortage of supplies.

Good luck to the banks in their attempt to hide the ugly truth - their paper promises are built on sand and their currencies horribly mismanaged.  Too many people have already figured that out and are not fooled by their attempts to suppress the price. 

Consider these attempts at price suppression one last subsidy to the alert.   Thanks!

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6 Comments

bigpig1's picture
bigpig1
Status: Member (Offline)
Joined: Sep 9 2008
Posts: 1
US Dollar

If this continues towards the destruction of the dollar, how long would it take to go to an all American/ North American currency? How quickly could something like that occur? How could we get Canada to go along?

 

Is this a possibility?

Fogle's picture
Fogle
Status: Bronze Member (Offline)
Joined: May 18 2008
Posts: 35
Emergency currency?

Here in my country, the Netherlands, is a not much talked law which gives the minister of finance absolute power in a financial crisis. This law was actualised in 1997.

 

This law states that the state can issue emergency currency. Force everybody to accept it, outlaw the use of euros or any other currency (gold?). In the same paragraph it states that he can seize all assets held by the Dutch in foreign accounts. And seize all privately owned gold. It doesn’t mention silver though.

 

I am so glad I found Chris’ site last spring. Most of our assets are outside the system. And we can stay indoors for months if needed. And we are telling the people we love and care about to get at least some money out of the banks.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5752
PPT in the house

The US stock markets opened down hundreds of points and then, in a classic move, spent approximately 1 minute down there before violently reversing the other direction.

Solid green candles the whole way with enormous premium spreads in the futures pits for index contracts.

Another "V-bottom" which is a classic sign of official intervention which, truth be told, was probably necessary to prevent a more serious market collapse.

The only problem with that is it means we now live in a centrally mismanaged economy and I don't have a lot of faith in the current crop of interveners...more likely than not they couldn't resist tipping their friends off and this all translates into most of the intervention money ending up in a few pockets.

Second, V-bottoms are not real bottoms and they tend to not last because they prevent real price discovery and the sort of market-clearing event that signals to true investors that it might be time to wade back in.

Lastly, intervention just assures that the pain lasts for a longer period of time than it would if the markets simply cleared.

But I understand that politicians and Fed bureaucrats feel the need to "do something" and that's what I think is going on here....

 

 

barrt's picture
barrt
Status: Silver Member (Offline)
Joined: Aug 25 2008
Posts: 171
Buy gold here and store it in a Swiss vault

Hiya

Here is an ecellent company where you can still buy gold, you can choose to have it stored in either London, New York, or everybobys favourite, Zurich. Ive just bought some more today

Its stored in your name in a Via Matt (formerly Brinks Matt) vault and to me were the best way that i could find to actually own gold and store it in a place even safer than my house - a Swiss bank. They are whats know as 'Good Delevery Bars' as well, very good service.

www.bullionvault.com/#bazzilli is the link, they have very good commission rates too and they bank with Lloyds TSB so in these times i dont think you can get much safer - that link contains my affiliate code, so i get a percentage of the commission that they make from any sales you make, you still pay the same commissions if you use my link or go straight to the site, its up to you if you want to remove the code or not Laughing

 anyway, good luck everyone!!

john50's picture
john50
Status: Bronze Member (Offline)
Joined: Sep 2 2008
Posts: 74
GOLD - Down $100 this morning

Gold fell impulsively from $930 to $830 on Friday morning, with no bottom showing yet, as expected. This is probably not a manipulation, but a product of margin calls for hedge funds, forced to de-leverage their bad (and good) assets for redemptions.The fall is expected in 5 classic impulsive waves down before a bottom is reached, a good target can be measured after the first wave down is complete near or below $800.

Since the peak of gold on March 17th, my charts indicated a large 3 wave correction would take place, with a target bottom close to $600. Personally, I will sit on my hands until the low $600 range, it takes patience to avoid panic buying during a deflationary collapse, but consider gold is not immune to a correction, and it will be the ideal time to load up and let those fiat dollars go.

Smile

Gold friday Oct 10

Ray Hewitt's picture
Ray Hewitt
Status: Gold Member (Offline)
Joined: Apr 5 2008
Posts: 458
Re: PPT in the house

Watching the Dow yo-yo all day, I got the impression that every time the PPT jerked prices up, sellers rushed at the chance to sell.

All the king's horses and all the king's men
Couldn't put Humpty Dumpty back together again.

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