Is the "market" saying the US has. . . solved its growing and everpresent financil crisis.

The stage is set for a true shock and awe surge of asset writedowns through the next year or so. Widespread colateral default, particularly at credit hedge funds, will trigger forced selling from margin accounts. (already happening) Roling downgrades will require divestitures by pension funds and insurance companies that find themselves in violation of rules on holding investment- grade paper. Holders of senior CDO tranches will liquidate their holdings as credit protection disolves. And the vicious cycle moves ever onward.

Add in mildly bad outcomes for the monolines and credit insurance cos and the global (not just the US) financial system is courting disaster!

Further to that, with notional derivative values (refers not to the derivative but to the size of the portfolio it is referencing) now exceeding $500 trillion, swings of $5 to $10 trillion in derivative values (which incidently are highly leveraged primarily through the "banking" system) are altogether plausible and would inflict further damage of enormous proportions.

All making the miniscule 1.1 $trillion gold market very attractive indeed! ($74.5 Trillion in fiat money vs 1.1 $trillion in combined gold coinage and bullion)

And the "beat" goes on! (Soon to be a "bad-beat" for many!)

"Excuse me, I have to flush!"

Ruf