Right now, however the Fed is on record that they will start monetizing debt and already basically doubled the monetary base. Velocity is still low and many banks aren’t lending, but still, with that kind of monetary expansion, there’s no reason to expect gold prices won’t continue to rise… be it to $1500 or beyond.

My take is we should remember that it was Fannie Mae who started the whole securitization craze in an insane push for more home ownership and as Peter Schiff put it, “[created] a conflict of interest between the real estate market and mortgage market… [and] has corrupted an industry in which the availability and cost of credit are of central economic importance.” (Crash Proof, pg. 126) And it was that securitization, along with the massive influx of capital made avaible by the Federal Reserve, that were the primary causes of the housing boom and subsequent housing bust. In the end, phasing out these institutions, or at least reducing their role in the economy is the right step to take. Remember, the best way for there to be “affordable housing” is for housing to stay affordable. Fannie’s and Freddie’s incentives for people to take out more loans and drive up housing prices accomplishes the exact opposite.

American companies are not in robust financial shape. Federal Reserve data show that their debts have been rising, not falling. By some measures, they are now more leveraged than at any time since the Great Depression.

In hindsight, it is truly amazing how stupid the people in charge must have been to get us where we are now:

But look where Greece is on the list; 19th at 153% (at 170.5% as of 2009). That’s no where near as bad as Ireland, Iceland, the United Kingdom or the Netherlands. It’s also not much different that Sweden, Germany, France and Spain. And the United States is certainly doing what it can to catch up.

As bad as all that sounds, it ignores the dire situation we are facing in a very familiar setting; the housing market. Contrary to popular wisdom, the ‘toxic assets’ have not been cleaned out. It is very likely we are heading for a second mortgage meltdown.

Many have oversimplified that Buffet didn’t understand dot.com’s, therefore he didn’t invest in them; and this is why he was able to have the last laugh once the floor caved in on the bubble. As he says: “Risk comes from not knowing what you’re doing.” My feeling is that Buffet knew exactly what dot.com’s were, he simply chose not to bite. In the irrational exuberance of market surges, Buffet, as stated above, knew these companies were not making a profit, therefore there was no true underlying value for most of them. Any great investor, or gambler, knows that the biggest wins usually come when you’re the 5% minority making the wager, and public opinion is going the other wa

This summer, the IRS rewarded Nicolas Cage for his “efforts” with a $6 million tax lien on his New Orleans’ properties for unpaid taxes. So the IRS, lead by tax cheat Timothy Geithner, is cracking down on Nicolas Cage for unpaid taxes. How ironic. Or perhaps, “how fitting” would be a better way to put it. After all, I think Tim Geithner, our spend-happy congress, the Federal Reserve, George Bush and Barack Obama can give Nicolas Cage a run for his money (what little is left of it) when it comes to irresponsible spending. Honestly, look at what our government has been doing:

Like the title says:

Breaking News: According to the Onion News Network the U.S. government has faked a coup in order to renege on our debts. It apparently beat out our other options like pretending to be Canada or burning the country down to collect the insurance.