Yesterday, news coming from Europe showed some optimistic news that caused stocks to rise globally. Roomers on the street indicated that there might have been some behind the scenes actions taken by the Fed to boost stocks because as Bank of America was getting into the 5 dollar range and actually dipping below 5 dollars for a short period of time. It’s now hovering at price levels we haven’t seen since 2009. There was a fear of Bank of America going below the 5 dollar benchmark because large institutions are not allowed to hold or buy stock that is below 5 dollars a share. CrushTheStreet.com believes that it is likely that the Fed coordinated a meeting with the ECB and other central banks to boost stocks as their beloved BAC fell to scary lows. Anyone remember Warren Buffet’s big investment into BAC? Chances are the Fed has his back on this one.
The news indicated that the ECB took-up their option to their longer-term refinancing operations and that it was stronger than expected. This take-up amounted to EUR 489 billion, which was significantly more than the EUR 239 billion that the economists were predicting. Of course this was an attempt to stimulate lending and free up some of their markets, but in the end, it is putting more fuel on the fire. More debt in Europe and around the world is a short-term fix for little optimism. The good news is that stocks opened up today, the 5 minute buzz that the world gets is too hard for the central banks and governments to pass up. However, the high didn’t last and stocks retraced and are settling lower. Rating agencies are warning that there aren’t many places to run before downgrades are necessary. Just so we are clear, CrushTheStreet.com is not optimistic at all on the future of Europe and would have much more aggressive ratings than what are currently in place. Does anyone remember the time when all the government had to do was indicate lower interest rates or financial stimulus and stocks would literally explode? People just don’t have the faith in these bogus artificial emotional plans for the economy that never prove to work long-term.
The House voted on Tuesday to reject a Senate compromise that would have extended a federal payroll tax holiday for two months and averted a cut in the reimbursement rate for doctors who treat Medicare patients.
Mark Cutifani, CEO of $16B AngloGold Ashanti, had some very interesting things to say about where the big buyers from Asia and the Middle East are getting their gold from. “People who want tonnes of physical gold, people with serious financial muscle…because they’re finding it’s very difficult to secure the volume of gold they want…That’s something we’ve noticed over the last 18 months, and its been increasing in the last 6 months. I think people are finding it’s hard to get physical gold.” These buyers according to King World News, are bypassing the rigged futures markets and bullion banks that rig the prices of the metal and going to ETFs for trades or even the producing mines themselves for physical metal. CrushTheStreet.com cannot help but sense the true scarcity that there will be in the bullion markets while prices have been manipulated and suppressed downwards with billions of fictitious paper ounces flooding the market.
The House Rejects Senate Compromise…
Obama might have to miss out on his vacation in Hawaii with his family dealing with political compromises.
People need to prepare for the worst now. There will come a time when the government will not be our answer and they too will be so far gone that survival will fall in the laps of individuals.
RON PAUL on the Tonight Show… Featured Video
Being a follower of a winner always has a much more exciting and encouraging vibe associated with it than following a person or a principle in a minority group. Dr. Ron Paul has been someone that our staff at CrushTheStreet.com have followed consistently for a number of years, and have supported all along. Seeing him rise in the polls and his message go VIRAL in the past short while has been extremely encouraging and something we’ve anticipated for the sake of America. His analysis of the problems with big government, the Federal Reserve, entitlement society, and our over-extended empire smashes all preconceived notions of what is good for the nation; he points out the diseases for the problems and not just the symptoms. We believe that the momentum that he’s accumulating in Iowa can potentially be a major turning point for his campaign and can really become the launching pad to get in the faces of the American voters. Americans are looking for real change and when they hear a man ACTUALLY know what he is talking about, there is a sense of confidence and security that there is true change that they can believe in and not just “hope” of some fairytale society that will not sustain itself. People who follow Ron Paul are strong supporters of him and truly love his message.
Attacking a man that has stuck to his beliefs and has been 100% right on the economy will not go on too long in the mainstream media the more Americans begin to back Ron Paul.
We’ve posted Ron Paul’s appearance on the Tonight Show on our front page at CrushTheStreet.com. Click Here to watch!!!
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“We endorse the idea of voluntarism, self-responsibility, family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It’s a preposterous notion, it never worked, it never will. The government can’t make you a better person, it can’t make you follow good habits. Why don’t they put you on a diet; you’re a little overweight, and I think you need government help!” -Ron Paul
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