tide is turning views, page-7

Or. . .

Short gold on the back of this rally (check out the USDX strength over the last day - http://quotes.ino.com/chart/?s=NYBOT_DX&v=s ) but be ready to flip back to longs at a moment's notice.

It's not just fannie and freddie the US govt has effectively underwritten now. By underwriting GSEs there's a lifeline being extended to other banks as well. The FDIC may only have months of money left if things turn sour.

Paulson has just spent in a day, some estimate, half of the total cost of the war in Iraq.

The USD is in serious trouble. But short-term expect it to strengthen. And if or when the rug comes out from under, who knows where it will all stop.

Psychologically, as a society, we are extremely ill-equipped to begin to deal with this - having lived in times of unprecedented plenty for most people's living memory. As we know, markets are psychological beasts.

Fascinating times.

Thank god we're living in an asset-rich country that is at least running surpluses and is relatively better prepared for an armageddon scenario than many. Given the woeful state of social and welfare supports in the US, I've never been happier to be an Aussie (although being Scandanavian would be nice too).