Wednesday, October 1, 2008

No selling in the Gold EFT's

In fact, they are buying. But you had some central bank selling, and the initiation of large short positions by some banks.

Now we'll soon have a revised bail-out bill, with a change in the alternative minimum tax rate and an increase in FDIC insurance.

But mark-to-market accounting? Buy some mortgages at rates that aren't fire-sale and you'll clear up that problem. The markets need transparency; then we can get a multiple. Wasn't Lehman's book value $28 a share? And supposedly, wasn't Neuberger Berman, which was just sold for $2 billion worth $10 billion?

Brian Wesbury supports mark to model, who says that consumer psychology (the basis of this weakness) is why the economy is suddenly becoming weak. Lop off 40% from the value of your home and stock accounts, and I think it's more than psychology that is affected. It's their wealth!

Here's his latest:

No wonder gold is getting a bid. The public isn't that stupid!

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