This recent slaughter of gold/silver/oil makes absolutely no sense in light of fumdamentals in any of those markets. It is enough to make one sick and lose total confidence in the system itself. Unlike many others, I cannot average down with this manipulated market!

How can oil go down after a hurricane shuts down virtually all of the oil rigs in the GOM? How can gold/silver go down when the government just announced the largest bailout of private industry in history? How can the dollar go up when other countries see us printing money like mad men to save our ignorant CEO's. This makes no sense whatsoever.

I am convinced this is orchestrated for several reasons:

1. Oil price drop to get the heat off of republicans going into election and to try to stimulate the economy.

2. Gold drop to give some cushion in the event FNM/FRE plan blows up and gold starts another move.

3. Dollar propped up to give the FED some room to lower interest rates to stimulate the econony later this year.

The economy is definately slowing down with consumer spending dropping and employment rising. Uncle Ben will have some room now with the dollar propped up to lower interest rates to stimulate the economy. I am betting he may do it at a convenient time to help George W. pull the Repubs back into office.

Either way, this is still painful to watch. Time for some more Vodka and Maalox.

SilverNut