I was having one too many beers last night with a fellow American sheep I've known for half my life. We lived together in the dorm for 2 years, I know him better then he knows himself. We struck up another time consuming, half drunken stupor conversation about his great city Chicago and how nothing is in recession EXCEPT for housing.
He says he cant wait to be out of debt (housing + college) and have no burden.
Well I got news for you. That Housing thing that ties the American Dream and its wealth, that caused the 2008 catastrophe is going to take another 5-10 years (assuming no hyperinflation) to even get back to a confident level. And for all you Canadians out there thinking we are the show, and immune to real estate bubbles- you better have your jackets zipped, and winter tuuks on, because the winter of our discontent soon approaches, and it will be swift and plentiful. Housing is DEAD for 5-10 years in North America. If you just bought a house in Canada, I wish you luck. There are only so many welfare case somalian taxi drivers that can buy $280K homes in your neighborhood.
Then we went on to talk about the children and how sending them to college is going to be the best thing for them because, I quote, "They HAVE to get an education." Right. I then went on to tell him all the millionaires I know started working construction at 18, and now drive lambos and californias like its no ones buisness and laugh at us 'peasants' with that thing hanging on our walls working at a call center till you muster up a better paying $32,000 job. LOL.
Moving on the metals. According to me, the next two days should be raided, in accordance with the usual law of kicking the life out of the comex options expiry stop losses testing any weak hands but by Aug 2nd, we should be back on track. And a big track at that as the Debt ceiling thing should be done by the weekend (adding to the attack on the metals) so a 48-36 hour window of opportunity exists if you didnt buy the phyzz at $33 as a small dip may be coming. I am keeping my $75 target silver for new years day...if anyone cared.
Morgan Stanley has done us some research also from ZH. I have made some amendments to the chart.
A few things that dont make sense to me here. From 2007-2009 the price got smoked, YET, the SLV bullion holding inclined, at a loftily rate I would say wouldn't you? And the increase from $25-50 in price, in regards to them finding the required bullion to back was not so lofty, would you not say? Got PHYZZ?
This article caught my eye today on yahoos front page:
I thought it was a joke, but its real. It claims that there are more and more people coming in and trading in their chains and bracelets for cash in Toronto. Great. So while us dumb, drunk and high Americanized idiots trade in scrap gold, the Chinese and Indians and Asia can buy enough of it. What else can I say? We are being robbed before our very eyes and we sit back and let dancing with the stars tell us what to do...well good, I cant wait for the grand finale on this one because I am ready.
Going into this weekend, I would suggest buying calls and puts at the same strike if you have no idea what Sunday night brings you. The next 3 days "should" provide us with cheaper calls to pick up and hedge with. And if all else fails and you cant trade equities or options, buy the physical on the dips before the breakout to no mans land above $50-its coming sooner then you expect.