Perhaps global warming is caused by all the hot air that blows out of Washington, the Fed, and the US Treasury Department. George Bush does NOT have a plan to halt the "housing crisis". Hank "I'm a buffoon" Paulson does NOT have a plan to stop foreclosures. The Federal Reserve is absolutely clueless and essentially powerless to stop the global economic meltdown smothering the alter of the almighty dollar. If you think that they do have a plan...and know what they're doing, perhaps now would be a great time to dump all your Gold, all your Silver, and all your mining stocks and pick up some Countrywide or Citibank shares. Heck, just sell everything you own for US Dollars...you are destined to be rich!
Treasury Plan to Rescue Home Loan Borrowers Not a Solution for All, Experts Say
WASHINGTON (AP) -- If lenders temporarily freeze low introductory interest rates on home loans made to risky borrowers before they soar, it would be a modest fix for the country's fractured housing market.
WASHINGTON (AP) -- If lenders temporarily freeze low introductory interest rates on home loans made to risky borrowers before they soar, it would be a modest fix for the country's fractured housing market.
The problems are so far-reaching, analysts say, that an emerging Bush administration-backed plan -- nicknamed "teaser-freezer" by one economist -- won't spare many borrowers, or bankers, from the pain of escalating foreclosures and defaults.
Edward Yardeni, an economist who runs Yardeni Research in Great Neck, N.Y., called the plan "better than doing nothing," but added that it is "not necessarily going to make a big dent in the foreclosure problem that's facing us" because thousands of borrowers still might not be able to make their monthly payments.
As a result, the plan, which could be announced as soon as this week, is unlikely to quell worries that the housing market's ongoing problems will drag the economy into a recession.
WOW! For once the experts might be right.
Goldman Sachs would love gold to drop to $650...that's where they shorted the metal. Goldman Sachs is underwater and sinking fast. Do you think they're going to step forward and tell you the price of Gold will be rising? If you've dumped any of your Gold or Silver positions because Goldman Sachs has suggested a lower Gold price YOU ARE A FOOL. In six weeks you'll be looking back on the last week of November with a sore ass from kicking yourself.
"I see the declines today as further profit-taking into month's end and trade off of a dollar that continues to firm today," said Zachary Oxman, a senior trader at Wisdom Financial, in emailed comments.
The dollar was higher against the euro Thursday, in what analysts said was a largely technical trading move rather than a reflection of fundamental conditions.
"Both oil and the dollar will remain key facts for gold's direction in the coming sessions," said James Moore, an analyst at TheBullionDesk.com, in a research note. Further long liquidation can be expected in the coming sessions, as the end of the month and the year approach, Moore said.
"However, the backdrop of dollar weakness, high energy costs and worries about the credit sector are still favorable for gold and will continue to draw investment demand into the market," he said.
This is reflected in the holdings in the StreetTRACKS Gold ETF which reached a record 609.33 tons, "now eclipsing China's 600-ton central bank holding and making it the 10th single largest holding of gold," Moore said.
Investors know a bargain when they see one. And savvy investors are backing up the truck to take advantage of these sale prices in Gold and Silver. Everyone and their mother believes the Fed will be cutting interest rates further on December 11th. I doubt this bodes well for the fortunes of the US Dollar. The Fed has cut interest rates by 75 basis points since September, and I've yet to see a rally in the Dollar as a result of a Fed rate cut. The price of Gold certainly has risen though...and will continue to rise into 2008.
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