The Private Sector Is Borrowing Again – And That’s Not Good
The guys over at Dollar Collapse bring up a good point in this post. The bailouts of 2008 are looking like nothing more than a kicking the can down the road. The central banks could have let over leveraged banks fail and stopped handing out debt to everyone and their dogs. Instead they did not let the markets correct and now in the US we have this stat.
“It’s not surprising that near-zero interest rates and trillions of dollars of newly-created currency would get people borrowing again…. In 2013 total US debt, equity prices, household net worth, large-bank assets and derivatives books, and a long list of other debt-related measures pierced the records they set in 2007. In other words we’ve recreated the conditions that prevailed just before the world nearly fell apart.”
Hey HH: NUGT is getting hurt man. I think with gold plunging on fed news is a precursor to a pile of loses here. We should hold for a bit a then plunge to new lows.
Can’t trade on news like the above. It’s irrelevant and if it wasn’t then gold would have kept on going up way back with additional QE but that’s what people expect. So that’s what it won’t do.
Billy, if a 4 to 5 percent decline is going to hurt, there is no use being in the ring. I do agree though we could get clobbered. So have to see what happens. I put on a small position yesterday at the exact lows. So Im off about 2% or so on that. Dry powder is still in my cashe.
Picking exact bottoms here in the shares when if gold continues down they can rally. PAY YOUR MONEY AND TAKE YOUR CHANCES. Buying this low ……….fill in the blanks…IMVHO
Also Billy when the shares come roaring back NUGT could be up 20 to 30 percent very quickly. IMVHO
Heavy,
Who knows man, 2014 could be another 2010! Time will tell.
THATS VERY GOOD FOR GOLD THOUGH. IMVHO