News and videos for Monday afternoon.
Good afternoon everyone. Gold started overnight by rising in foreign markets to $1,242.80. Right now ExactPrice is showing the spot price is $1,225.20. So it’s down by almost $20 from the overnight high. Reason? My guess, is that because the stock market is continuing to struggle with Euro news and there is some big losses there, so money markets are probably selling their profitable areas to cover the shorts in the markets. So gold is being sold off for that purpose, but the big banks are probably attempting to knock gold too and keep it from breaking back above $1,250.00. That’s my guess at the moment and I’m sure that tomorrow will bring some greater insight from minds sharper than mine.
Now onto the news and video I came across this morning that I think is worth considering as we move forward in this uncertain economic time.
This first is a blog post that makes a very interesting analogy between what is happening in financing today and how cancer develops in a body: Finance Is Now A Cancer In The Economy – Proof
And with financing on the mind there’s this from Bloomberg: Greece Considering Legal Action Against U.S. Banks for Crisis
Greece is considering taking legal action against U.S. investment banks that might have contributed to the country’s debt crisis, Prime Minister George Papandreou said.
“I wouldn’t rule out that this may be a recourse,” Papandreou said, in response to questions about the role of U.S. banks in the crisis, in an interview on CNN’s “Fareed Zakaria GPS.” The program, scheduled for broadcast today, was taped on May 13. Neither Papandreou nor Zakaria mentioned any banks by name.
This interview on CNBC or Ron Paul is worth your watching. I found it on King World News this morning.
Since I’m on videos I found this one from Nassim Taleb worth listening to as well. Found on Jim Sinclair’s Mineset which I suggest you click on and read. The post title is: Is The Financial System Corrupt?.
This post this morning from Lear Capital’s blog is short and sweet and has some great nuggets.
And for those of you who will keep vigil over the gold charts for us, look for a sort of tug of war to take place as a strong dollar tries to pull gold prices down, while rising inflation tries to pull the gold price higher.
Some truth from Merkel that may be causing the markets worry today: Euro rescue package ‘just buys time’: Merkel
A trillion-dollar package to shore up ailing eurozone economies merely buys time until the deficits of certain members of the 16-member zone are cleaned up, German Chancellor Angela Merkel said Sunday.
I found some interesting info in this post by Edmund Conway: US faces one of biggest budget crunches in world – IMF
Be sure to check out the chart.
Until next time.