I wonder if I can go to the Fed discount window and get an overnight loan for $1 million dollars @ 2.25% because I have "liquidity issues"? Well maybe not...........I guess I'll just rough it for now! So what's the deal with this schzophrenia we see in the financial stocks and the commodities market? People just can't make up their minds which is the safest bet. With the fear of a global slow down, investors are speculating that the slower economic growth will curb demand for energy, metals and grains. Now everyone is pulling out of commodities. Ok, so were commodities a bubble, like housing that will and is bursting? Well we shall see IF prices go down and that includes gasoline that we fuel our cars with. I will believe it when and only when I see it!
Interestingly, the stock market hasn't seen such wild price swings since 1938, about 70 years ago. Makes you wonder really how secure the whole "system" is. The volitility is exploding like a giant volcano. Perhaps a volcanologist can tell us when it will crash and burn. Perhaps this all a psychological mess like bi-polar mania that is just medicated with an anti-depressant? Or are these signs of a much deeper, systemic problem that will only get worse? Really the only way to assess investments would be to look at the issues from economic indicator analyses to determine where different investments had been and the likely direction to move in the future. But true it is, if this country continues to go deeper into debt, there is no doubt in my mind that it will fail. Refusing to deal with our national debt will bring likely failure to our economy and our options are running out as time goes on.