Its was a awful week in the markets, not the sheer panic we had in October but the drop across the board especially the Financial Sector. I had many discussions with fixed income investors looking for any yield at all in safe investments, it is not easy if impossible to find. They are terrified of financial preferred stocks. CD's. treasuries, and state municipal money markets are paying nothing. This plan of the Government lowering rates is destroying the confidence of the savers out there. Its a slow Weimar death roll.

Lately the clients in the State Governments paper have been very scared of the yields for the risk they are taking. Imagine you one million dollars in Calif Money Market and the yield is .02%, not 2% 2 tenths of a percent. How can you expect any normal human to put money in that investment with the news coming out of the states, MA, Calif, MI, so they are not, they are getting out.

But there is a catch, where do they go? When I review alternatives with them, they are awful. I an hearing/seeing treasury money markets after the expense fees coming out turning negative. I won't name firms but this is becoming concerning to many investors they are afraid the money markets are going to break the buck, and they don't know where to place there money. Mutual fund co are closing there treasury money markets to investors going forward???

I feel the next black swan is going to be the State Governments, unless the FED just bails them out. This time where are people going to run to with rates so low?? Treasuries are paying zero and more and clients are making comments I never heard over the last decade. They are expressing concerns about the printing of to much money. I have heard it more and more. I never initiate the idea, they bring it up.

Now things might calm down for a few months with the new President but the saver investor is being backed into a corner with few options. Sounds like a real life situation that could bring the masses back to gold??? No yield in cash, banks are not safe, and no third party risk with gold. People feel trapped and they are! Trapped in fiat hell.

These sure are fascinating times. I would have never dreamed of whats happening in the markets today only one year ago.

Be alert and be careful out there