Stocks and Gold Gain as Investors Shun the Dollar

[AllentownJake]

Source: AP

Investors clamored to buy pretty much anything on Tuesday — as long as it was not the dollar.
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Richard Drew/Associated Press

A seven-month slide in the value of the dollar gained force as investors migrated to other markets and fretted over a report that crude oil could one day be priced in other currencies, hobbling the dollar’s role as a vehicle for global trade.

On Wall Street, shares climbed higher on hopes of robust profit reports as earnings season kicks off later this week. And the dollar’s declines propelled gold prices briefly above $1,040 an ounce — a record high — and touched off a buying spree for copper, silver and platinum and crude oil — commodities that typically hold their value if the dollar does not.

The dollar slipped further against major currencies, continuing a decline that has sent it tumbling 15 percent since early March. The dollar fell to $1.47 against the euro, and the Japanese yen strengthened to 88.76 for every dollar.

Read more: http://www.nytimes.com/2009/10/07/business/07markets.html?hp

[nadinbrzezinski]

1. You know I have NOT head a peep about this

story on the MSNBC all day... or as long as it has been on.

They have been doing HC and Afghanistan, but this... NOT A PEEP.

[AllentownJake]

3. CNBC is talking about it

they don't seem that worried.

Jim Rogers predicted this 3 months ago.

[nadinbrzezinski]

5. Well that is the financial channel

I figured monitor the non financial... and it should be in the non-financial channel, should lead in my view.

[AllentownJake]

6. MSM won't cover much of this stuff unless there is a giant crash

Reason being

1) Most Americans don't want to understand it.
2) It is about to be the start of the Christmas shopping season and making people aware of worsening financial conditions is bad for business to talk down the economy before Christmas.

[nadinbrzezinski]

9. Reason one in my mind is the chief reason

we saw it last night as this broke... that thread was twilight zone...

[WriteDown]

10. The dollar dropping is not necessarily a bad thing....

You are right that most Americans don't want to understand it though.

[AllentownJake]

11. No it isn't necessarily a bad thing

However, things we import will become more expensive (oil) and our exports will become cheaper.

The stimulative effect of one could be offset by the other.

[WriteDown]

14. I believe one of hte most important things right now....

is to get the trade deficit under control. This will help to do that.

[AllentownJake]

17. A big part of our trade deficit is our import of energy resources

We may stop taking as much cheap shit from China and Vietnam. However we are still addicted to foreign oil which will inflate the price of our manufacturing, distribution, and agriculture.

In addition to commodities we have to import like copper...

Overall this has an inflationary pressure on prices here which could take away any stimulative effect.

[imdjh]

2. Last week they were breathlessly awaiting 10K and then it dropped 300 pts, now it's back

And last week I read an article about Wall Street boys playing in Zombie stocks.

[AllentownJake]

8. There will be another perciptous drop

Why, because you can make money off of it.

[imdjh]

16. I thought you were going to say, "Why? Because the big banks are actually worthless."

[AllentownJake]

18. Well that too

but they are totally backed up by the Federal Government at this time. Buying a too big to fail bank stock is the same as buying a Treasury bond at this point in our history.

I'd like to be able to own a business where any loss was guaranteed by the federal government.

[onethatcares]

4. gold just went over 1033.00 american/ silver 17.10

and our paper money is soon to be worth what? At one time we had a country that led the world in production, then we let the bankers back in. See what happens when you pull money outa your ass and don't produce anything but wealth for a few.

[AllentownJake]

15. I'm still scratching my head onto why those guys were bailed out

They create no wealth. They create an illusion of wealth.

[WriteDown]

7. Good and bad....

This will be great for stocks as well as the trade deficit.

[TwixVoy]

12. I have been making posts for months recommending

people dump at least SOME of their dollars and buy at least SOME gold just in case. Many people have laughed at me here for that recommendation. We will see who is laughing in the end...

[AllentownJake]

13. There is a reason there are people in every city buying up

people's gold jewelry.

Silver is a decent hedge as well.

[imdjh]

19. Which might also explain the burglary rate.

I swear, you go through the arrest report in the morning and the burglaries are stunning both in number and the angelic faces which go with the arrests.

[AllentownJake]

20. Crime rises during bad economic times

I used to investigate fraud. Most people who get caught up in committing fraud do so because they are caught up in a bad economic situation. There is a minority that do it because they are sociopaths.

[imdjh]

21. I think that some of it is opportunistic.

I see young people with good addresses being arrested for burglary, I'm given to think it has something to do with a perception of profit or not getting caught. But, just because a kid has a good address doesn't mean he doesn't have expenses, drugs aren't free even in Florida.

[AllentownJake]

23. If it is kids there is no telling

I had very well off friends as a kid who got busted shop lifting...because they wanted to have the rush of stealing.

[Selatius]

25. I think people who sell their gold for cash to these guys are making a terrible mistake.

If the Dollar depreciates further, the cash they have in their hands will not be the same value as the gold they once had.

Every time I hear those radio ads, I just laugh bitterly at all the suckers who are getting bought.

[wishlist]

27. Dealers buying gold often pay only a fraction of real value

Several recent news articles have stated that 15% up to 50% (at most) of the full value is all they are paying for gold.

[bluesmail]

22. Yep. Your LBN Demise of the Dollar was excellent. eom

[bluesmail]

24. This could also be their way, (NWO contestants),

getting their message through to Obama. We've given in leetle bit, now it's your turn. No more concessions. NWO, Bildebergers, CFR, all do things in secret. This is based on theory, after reading everyday being intensely interested in the politics of this planet. Also twixvoy's LBN: www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4091485

[wishlist]

26. This must explain why gasoline jumped 5 to 10c per gallon on Monday

I wondered what caused the sudden increase at the pumps after gas had been falling for a while.