Posted on | August 25, 2011 | 12 Comments
Q. How bad is the economy right now?
Warren Buffet reportedly bought $5 billion — that’s billion, with a “b” — of Bank of America stock, and yet the Dow Jones Industrial Average still lost 170.89 points. That broke a 3-day streak of gains, and now we notice that mortgage rates are rising, an indicator of bond-market worries, and here’s a scary sentence for you:
A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.
Monty’s got more DOOM, if you want it. (And you know you want it.) Now, our periodical “You Should Have Listen to Glenn Beck” Update:
Gold prices rebounded Thursday as more U.S. workers sought unemployment benefits and concerns about Europe’s debt problems took back the spotlight.
Gold rose $5.90 to finish at $1,763.20 an ounce after falling $134.60 in the past two days. . . . The price of gold is up 8.7 percent this month.
An 8.7% gain in a single month, despite the recent slide. Look at your investment portfolio and see if anything else you’ve got has done as well.
UPDATE: Banks in U.S. Face Main Street Squeeze as Sputtering Economy Saps Earnings. And to remind you what I wrote yesterday: If you buy gold now, and the price goes to $2,100 an ounce within six months — an entirely plausible scenario — that’s a sweet 20% profit.