Posted on | November 24, 2011 | 6 Comments
Stocks suffered a sixth straight day of losses on Wednesday as frustration over the euro zone’s debt crisis, coupled with weak Chinese factory data, further dented investor sentiment.
A weak German bond sale sparked fears the debt crisis was even beginning to threaten Berlin, with the leaders of France and Germany still at odds over a longer-term structural solution.
The poor demand for German government bonds showed that investors viewed investing in the euro zone as being too risky.
Here’s a cheerful headline:
A year ago, Germany and France could probably have saved the euro–at least for a time–by stepping in to guarantee all the debts of the peripheral euro zone nations. To be sure, this would have created quite a lot of other problems, but it would have saved their banks and their currency union.
However, a year ago, governments were nowhere near ready to take such drastic action: the French and German governments didn’t want to put their credit rating behind Greek profligacy, and their voters wouldn’t have stood for it if they’d tried.
At this point, however, with the panic in full flight, it’s not entirely clear to me that even a 100% guarantee would staunch the bleeding for more than a short time. Do the Germans really have enough to guarantee the debts of most of the rest of the euro zone?
After two “recovery summers,” it’s all gloom and doom this fall:
So: Stocks suck and bonds look shaky. Which means . . . gold?
Gold and silver futures declined for the second time in three days as the dollar’s rally muted demand for precious metals as an alternative investment.
Wait — what?
Gold fell further on Thursday as declines in equities blamed on the euro zone crisis prompted investors to sell bullion to cover losses, while a firmer U.S. dollar also put pressure on prices.
In other words, the economy sucks so bad right now, rich people are being forced to sell gold in order to make up for money they’re losing in every other area of investment. But perhaps there are financial opportunities in international catastrophe.
Investing in oil futures might work, but maybe it’s time to panic?
Let’s face it, folks: The economy sucks real bad, and it’s only going to get worse. And you know what that means? It’s time for you to start shopping our Amazon’s “Black Friday Deals Week” specials: Great savings for you, commissions for me, and that way we’ll have enough money to stock up on freeze-dried food, Coleman lantern fuel and ammunition. Lots and lots of ammunition.