Last night, I broke a resolution not to listen to Coast to Coast AM. George Norrie’s guest talked about how the stock market was building up another economic bubble, which he said is about to burst, and this will be worse than the last one. I do not play the market, but I have noticed that when the Dow is up, the next day, it will be down. It is almost as if poker players are sitting at a table, and when the pot gets big, they take the loot, and run. Of course, I am not sure that this is the case, but it seems to have this pattern.
Another thing he said, which I strongly agree with is that gold or silver are poor hedges against inflation, and economic security. As he put it, when the dollar was backed by gold, it may have made sense to invest in it, but since gold is no longer the currency of commerce, it makes no sense to invest in it. I whole heartedly agree with that. I laugh when I see people trying to get people to buy gold. It to me is a fool’s dream. When Roosevelt made gold a set price, that to me said that gold was no more a commodity to be traded.
Now, I fell asleep, and never did get to hear his answer as to what we should do when this bubble bursts. Of course, he has written a book, haven’t they all, I might look it up to find the answers.
I remember when Nixon was first President, the Stock Market hit a 1000, it was a record for 1968, or ’69. I can’t recall the exact year.