Gold is falling. Spot prices down $23 from New York close

[Horse with no Name]

http://kitco.com/market/

[MADem]

1. Well, all those people that frantically bought gold are taking a bath...

[KharmaTrain]

3. If They Bought Recently, They Deserve It

At $700 or $900 an ounce, once doesn't "frantically" buy. The smart money went into gold futures.

[tritsofme]

2. Gold is a traditional hedge against inflation.

And inflation isn't likely to be a problem in the near future if we are dipping into recession.

[girl gone mad]

4. Dollar gaining strength,

deflation/syagflation likely near term. A lot of money is moving into dollars, ready to jump into stocks, imo.

[KharmaTrain]

5. Looks Like Someone's Pumping Up The Dollar

All the "doom and gloom" talk about the NYSE may not come to pass. But this has happened before...Asian markets tend to react rather than lead our markets. Methinks there's a move to prop up the market...settle down the skittish investors and try to keep the market from another big dump. Sounds like there's more defaults and other bad news on the way and the big money is moving to cover more of big shitpile from collapsing.

[liberalla]

6. I'm with you. I think they're going to try and keep it together

as long as they can... Prop up is accurate. In the back of my mind, I keep thinking they want to prop it up until the next president takes office (don't want it to fall under GW). No matter when it happens, there can be no doubt where the blame belongs.

(personally, I think things will get very bad this fall)

[KharmaTrain]

10. It's A Dead Cat Bounce

Yep...this regime is trying what it can with what it has left to keep up the appearances of a solid economy, but few are buying. That's what's caused a lot of the confidence in the economy going south. These goons have showed how irresponsible they are with economics and any action they take now tends to bring a big reaction...and those of us who bet on those reactions have done well.

The economy and markets are punch drunk after months of volitility. A combination of the soaring debts (Iraq), borrowing and defecit spending have lessened the ability of the Fed to affect global markets. The growing bank crisis...and it's more than just a few bad lenders and a couple sorry borrowers, the large scale foreclosures are the top of a pyramid of credit that's starting to implode under decades of speculation, exploitation and manipulation. Bills are coming due...long overdue and it's coming at the worst possible time. The price of oil and precious metals all are indicators of these fundamental problems in our economy and the lack of confidence in the financial world that the boosh regime will do the right thing.

Hang on...this year is gonna be a wild ride as things will appear stable and then a bad report or some other jolt happens and we're back on the downward spiral again. I've heard predictions of the market not "hitting bottom" until 10,000...it could happen by the fall.

[PuraVidaDreamin]

11. When are they gonna get tired of saving Bush's ass?

They get what they deserve

[JCMach1]

7. Been saying this in the sky is falling threads

Much more of the crisis and economic fallout has been priced into the market already in the States.

The money people have been pulling out of Asia... That's what caused the turbulence.

Where is the money going to go? Gold (doesn't look like it)... Cash? inflation will eat it up.

The dollar? (maybe if they think it has reached a bottom).

Or? Maybe U.S. equities...

Don't get me wrong! There will be a reaction drop today, no doubt 2-7%... By next Monday, I will be looking to buy into the weakness...

[soothsayer]

8. helicopter Ben Shalom printing more money and chucking it into the economy?

I wonder if anyone knows how much $ is in circulation now? We surely don't know, since they took the dollar of the M3 index.

[soothsayer]

9. Fed Reserve about to get a Pluto transit (Jan 28), 1 of 3 this year.

Will credit tighten up?

[deacon]

12. The bush "ownership society" izzzzzzz everybody happy! n/t