US Treasuries Bubble and Gold
This week's Barron's cover story on the bubble in US Treasuries includes this nugget:
And this weekend saw Breakingviews.com expressing its own positive view of gold -- and its not just an American thing:
This monetary expansion is not supposed to be inflationary, since the governments promise to take any money away before it can push up prices.
But investors can be forgiven for scepticism. Higher inflation is at least possible once the global recession bottoms out. And gold provides good insurance against this outcome.
I'm no gold bug. Or even a gold investor (bullion or mining stocks). But I carry around currency in my wallet. So if gold is truly real money, I want to be aware what's going on with it.
great post, keep it up. i also feel that I think financial institutions are in trouble. with the markets frozen, these P2P lending sites are stealing market share, by eliminating the middle man. Plus the returns seem unreal, this guy says it good at
http://www.crashmarketstocks.com/2009/01/doom-in-detroit-profits-taken-after-3.html
Posted by: jason thomas | January 06, 2009 at 11:58 PM
@jason: I don't have an opinion on your linked piece. But I'd be very careful about putting money in bank stocks. Not to say I'd never do it, just saying there's even more risk in that group than others.
Posted by: CONTROLLED GREED.com | January 07, 2009 at 05:46 PM