Quote:
Originally Posted by Team Sergeant
This will not be a national problem; this financial crisis will effect the entire globe.
Just my .02
TS
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Words of wisdom, and well worth reflection.
Today, gold was up $90 an ounce to $870 per ounce. Meanwhile, the Dow has broken important support levels.
The next thing to look for is a run on the dollar; one indicator is an extended increase in the price of gold and other commodities. The next one to watch is the price of bonds. If bonds start going lower, and interest rates higher, then we could be in for some challenging times.
One problem is that the U.S. dollar is the world's reserve currency. We have, in essence, had a very large line of credit that never had to be repaid, all at zero interest. If faith in the dollar cracks among foreign nations, then the value as compared with other currencies will decline - probably a lot. We, the U.S., will wind up paying much higher interest rates to finance our deficits.
There are indications that consumer discretionary spending may be in for a move downward too. But this must surely affect the entire world - from China and Mexico, and many other places as well. Our consumers will suffer distress, purchase less - and thus draw other nations into recession as well.
Kgoerz may do very, very well with his land. Perhaps refugees from Wall Street will offer to work for room and board. (That was an attempt at humor, by the way).