what is it doing, page-10

http://www.kunstler.com/


"They say that the banks have stopped calling in their loans on the commercial real estate, even though the owners of the malls and strip malls have arrived firmly in default. Calling in the loans would only pin another horrifying liability on the banks' balance sheets. So all parties join in a game of "pretend," that nothing has really happened to the fundamental equations of business life. Something similar goes on at the next level down, where the tenants of the malls and strip malls sink deeper into rent arrears every month, and the eviction process is simply postponed, while the stores themselves put off paying their vendors and suppliers – as the whole system, the whole way of life, enters upon a circle-jerk of mutual denial in a last desperate effort to forestall the mandates of reality."

Did you hear Paul Keating on lateline? Nicely put that something like the top 200 worldwide financial entities have lost 74% of their capitalisation. After this he mentioned look at Gold, then paused short of saying to buy it.

Weigh up what we know against what we don't know and Gold is a safe bet.