Wednesday September 16, 2009, 7:58 pm
More proof of this is found in the commodities market. The price of gold, silver, platinum and palladium are all nearing record levels as the dollar continues to shrink. Investors are moving away from stocks and into safe haven commodities as a hedge against inflation.

Thursday September 17, 2009, 9:21 am
As long as predatory banks are rewarded and the people afforded no meaningful protection from the banks, this dreadful cycle will continue.

Thursday September 17, 2009, 11:29 am
Agreed Ralph this is the safest haven so far... banks cannot be trusted, and with their high costs in using their facilities it eats into any interest you may accumulate...

Thursday September 17, 2009, 1:32 pm
We are in a depression.

Thursday September 17, 2009, 5:24 pm
Thanks Cal I enjoyed this article.

Life is dynamic; smarties frequently find their way around laws; equilibrium in any market is difficult to find and maintain. It follows that it is virtually impossible to ensure whatever " will never happen again". What is possible is to minimise risks.

In the financial sector that risk minimisation occurs when efficient business pratices are rewarded. Therefore a few simple rules quickly and fairly enforced do wonders. (The USA seems to have too many complicated rules which are not enforced!)

e.g.

1 Insuring/guaranteeing the product not the institution is the go. A sub prime mortgage is usually a dud debt, regardless of what kind of institution originates it.

2 Institutions should be prohibited from growing "too big to fail". That size will vary from time to time, place to place, and industry to industry.

3 Financial institutions should have realistic reserve ratios.

4 Regulators should act speedily. (Madoff should have been found out far sooner than he was.)

5 Boards and CEOs should not approve of products they do not understand.

6 Lenders should not lend money to customers who are unwilling and or
unable to repay it.

7 Bonuses etc. should be paid from profits already made and held in
escrow for five years.

For years, not just since Lehman Bros collapsed, the above practices have not been implemented, so future meltdowns are on the cards, just as this article suggests.

Thursday September 17, 2009, 6:15 pm
If you thought members of Congress were either reluctant to vote for, the so called 'Blue Dog' closet Republicans, or fought against with such rabid pig-headedness, the Republicans, real effective health care reform with the necessary public option, to ensure that health care corporations continue to make mega-profits from the death,pain,suffering and bankruptcies of Americans with and without insurance.Oh! Baby, you ain't seen anything yet! Just wait until the financial reform hits the fan. Do not expect the same circuses of guano crazies from the fake grass roots of Freedom Works,60 Plus,Patients First, and Americans for Progress, that would be nearly impossible to pull off with the Trillions of tax payer dollars, some lost to bonus and golden parachute contracts held to be more sacred than the auto workers contracts because of the color of their collars and the desire of Republicans to bust unions that have the nasty habits of thinking workers should benefit from the profits they help generate and supporting and voting for Democrats, to correct the economic disaster brought about by the 'to big to allow to fail' Money Changer Corporations acts of unregulated greed and reckless malfeasance along with acquiescence,unwillingness or inability of Government regulators to regulate the feral pot bellied pigs of finance. What you can expect is more of the clandestine no public knowledge of or comment on allowed committe meetings like the Baccus Gang of Six paid employees of the health care industry, that was used to produce a bill that protects and increases health insurance profits as Wendell Potter,a former Cigna exec turned whistle blower, said,'is beyond what the insurance lobbyists and lawyers would have considered attinable'. The health care industry spent several hundred million on campaign contributions and other legal bribes to ploiticians, mainly Republicans and 'Blue Dogs',running in the 2008 election cycle,the Finance/Banking/Credit card industry spent nearly a Billion except they gave with a more even hand, slightly more to Democrats. So in spite of needing Trillions of tax payer dollars to keep them from failing, they still have plenty of cash, our cash, to spend protecting their Trillons in profits and millions in bonuses for just showin up and screwing up... This will be when the truth about Congress rears it ugly head; just how much our democraticallt elected representative government is composed of a majority of paid corporate employees of the finance, health insurance and other corporate interests, and a minority of true elected public servants of the common good. Consider that already for the 2010 election cycle members of Congress who oppose health care reform are recieving 51% more health care related money than those for reform, those already in opposition to finance reform are receiving 65% more in finance related campaign money. Money talks and democracy walks the plank