An outtake from today's Cafe:

This market in both the physical AND junior Canadian mining stocks is a repeat ? REPEAT ? of the action in late 1978-Summer 1979. Big correction in the Fall to End of Spring with the old Vancouver Exchange down about 45% and many juniors down 50-80% off the highs. Right around this month thirty years ago, the metals all turned up with a vengeance and by the top in January of 1980, the VSE had doubled along with similar moves for the TSE Mines and Metals and Precious Metals Indices. Canadian, Australian and South African exchanges and currencies led all world markets in performance during that period. Of course, the problems of 1978-1980 were not related to the structural bankruptcy of the U.S. banking system ? all Paul Volkker had to worry about was inflation. I’ll bet Paulsen and Bernanke are longing for the "good ol’ days" of 1978-79.

I think we are in the same "sweet spot" here in May 2008