Nothing seems to surprise us anymore. Given the condition of the financial markets, it won't be a stretch of the imagination to say the end of traditional stock investing is over and done with for all eternity; ironically we think it has been dead since this so-called recession was officially declared over in June 2009. With that being said, today's (not so) shocker from the
Interestingly, the people who run the University of Texas Investment Management Co., seem to be in step with reality and understand the full enormity of the global situation, as they have decided to take delivery of $1 Billion in gold bars and physically store them in a vault in NY. It seems they have figured out, when the SHTF worldwide, holding paper certs of gold or silver (or whatever asset) is as pointless as wearing a paint mask and sunglasses around reactor 3 in Fukushima. Taking physical delivery of silver and/or gold, is probably one of the smartest decisions holders of Euros/Dollars/Yen/Yuan et al, can make right now especially given the possibility of a shortage at the COMEX. "But I've got this paper here which says I own $40k in gold bullion!" Tough cookies!
Of course, the sovereign debt explosion (or rather implosion) isn't helping any. As reported here last week, Finland held a key election which has determined the fate of the entire EU. It turns out, the election yesterday went as we expected and right now, all future bailouts to Greece, Ireland and Portugal are in doubt - meaning, no more free soup for them. Of course Spain, like Portugal, like Greece and like Ireland, doesn't need a bailout, so there's nothing to worry about. Right?
Surprise, surprise - a quick glance at the Greek 10yr bond yield shows a whopping 14.69% and the 2yr bond is a
Speaking of Fukushima, TEPCO announced last night that they plan to reduce
In other news, US debt was
Remember, $3.52 per gallon gasoline is not harmful to the US economy, but $4.00 is. And that's why the Exxon CEO gets paid the big bucks, to make pure genius revelations like that. Of course, now that 7 states are officially averaging $4.00 for regular and the national average is only 17 cents away from that beastly level, it's bullish for the global economy. All that demand from the red hot economy is putting more and more people into big gas guzzling SUV's and that is pushing the price of oil and gas higher. It's not the endless money printing. Because Dr. Deficit says so.
Update 1: Something from the realm of surreal turned bananas and which deserves an official "laugh out loud" moment is this Poll of Economists provided to us by the good people at AP. Enjoy, but be sure to sit down first.