The catastrophic wave C down is just getting started as the markets have topped out.
By Daniel at 27 November, 2009, 9:42 am
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The metals have fallen minimally in comparison to the paper markets. The Zombie Banks are crashing around the world today with news of the Dubai World default on $80B in debt owed mostly to the large, multi-national banks.
http://business.timesonline.co.uk/tol/business/markets/article6933664.ece
This Dubai World default is NOT a stand alone instance. There are hundreds if not thousands of large sovereign institutions/nations on the brink of default.. especially in Eastern Europe not to mention almost all the US State governments.
The banks are still leveraged to the hilt (many over 20x) so for every $10B loss in asset value the banks lose $200B. Leverage is great when asset prices are rising but a @#$%&! when they fall. I expect to see a few of the “Too Big To Fail” banks fall in one of the FDIC’s “Friday Night Bank Closure Parties”. If not this weekend then one very soon.
In the mean time… who holds your money? If your answer is “the bank does” then you have an urgent problem that needs to be addressed immediately.
Make no mistake. WE ARE THERE…GOT GOLD AND SILVER. Buy on the dips like NOW!
- goldstandard
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