Its about time...


Well-Known Member
Sep 27, 2010
Gold an the red headed step child silver, were trashed. Oil was trashed and it is about time for all of them. While gold and silver are meaningless they are symbolic of the lunatic fringe of commodities. They are meaningless intrinsic valued commodities and create a big economic yawn.

Oil on the other hand drop, while still not enough, is fantastic for the United States and the emerging market economies. I still think oil needs to go to about 80 to restore good global health but its on its way. Guess Goldman was right to get its investors out of it a couple of weeks ago.

As I have been saying all along these are bubbles not caused by demand but by speculation bubbles. And today the whip cracked and down they came. And don't be stupid, it has nothing to do with the dollars mere rise of o.77 %. That didn't trigger the massive selloff's in the "stupid" metals and oil.

And it looks like Bernanke was correct, oil's rise was just a short lived event. But its drop below 100 is a good push in the right direction. And remember there were no margin calls on oil until it started to cascade downward.

I draw your attention to the leveraged ETFs for a minute. SCO down over 18% today... ZSL down over 25% just today to match with the last three days is down nearly 50%!!!!!!!!!!!!!! And just think... a whole lot of unsophisticated silver and gold traders will only find out about this when they go home tonight and check the markets so expect the slide to continue in earnest tomorrow.

If the commodities continue lower, it will be great for business. Gas will fall, consumers will spend, airlines may actually make some money, truckers will do better, and on and on. This bubble speculation is poison for the economy just like obama policies.

Congratulations are do for Nazi war criminal george soros for creating and benefiting from a stampede that he himself disclosed as the all time greatest bubble.... but nobody was listening, they all had dreams of shimmering bars of metal and the wealth of midus.

Speculation dies hard but there are more bodies on the street today than in the bin laden garden apartment on 72 Virgins lane.