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View Full Version : Charles Merrill Fears Market Crash



freelance
11-03-2007, 05:58 AM
http://www.ereleases.com/pr/20071030012.html

Can they keep the market from crashing until after the 2008 election?
Man from La Mancha
11-03-2007, 06:07 AM
He says you better buy Gold coins.

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CurtisLow
11-03-2007, 11:36 AM
So if you have cash in the bank. Buy precious metal?
freelance
11-03-2007, 12:08 PM
So if you have cash in the bank. Buy precious metal?

Some of it, yes.
fsk
11-04-2007, 12:19 PM
The Federal Reserve can *ALWAYS* keep the market from crashing by printing more money. There always is a credible weapon for fighting deflation: print more money.

What you should fear is hyperinflation. However, with an inflation rate over 15% and increasing (the current rate of growth of M3), we're pretty much already in a hyperinflation scenario.
sickmint79
11-04-2007, 04:17 PM
IMO i think it intelligent to diversify out of some USDs and into PMs - gold and silver (i like palladium too)

i'm 28 so i can be riskier (well, depending on how much you trust the usd) in my portfolio; but i have 15% bullion, probably 60% mutual funds with international stocks, 10% us equities (mining, some tech) and 15% us mutual funds

i would personally not be interested in any cd's, IMO they do not seem to be beating inflation...

many old school thoughts stated 10-20% of a portfolio should be PMs. could bump that up a little today.

i know some gold bugs are 90, 100% in PMs. i'd find that scary !
MsDoodahs
11-04-2007, 04:25 PM
What you should fear is hyperinflation. However, with an inflation rate over 15% and increasing (the current rate of growth of M3), we're pretty much already in a hyperinflation scenario.

We aren't in a hyperinflation.
fsk
11-04-2007, 05:08 PM
We aren't in a hyperinflation.


The USA is precariously close to sliding into hyperinflation. An inflation rate of 15% is pretty close to hyperinflation. For example, if China dumped its US dollars, that would trigger a dumping by others, which could trigger hyperinflation in the USA.
jon_perez
11-04-2007, 09:59 PM
However, with an inflation rate over 15% and increasing (the current rate of growth of M3)...Isn't it absolutely misleading to assert that M3 growth rate is tantamount to the inflation rate???

The amount of productivity and services that the money supply is supposed to match does not stay still. If productivity were also growing at that rough rate of 15% then that implies prices are stable.
RP4ME
11-04-2007, 10:02 PM
when has productivty ever been equal to 15%? That sounds very high...and we arent thre now to be sure - we are like 12% off.....
golfboy
11-05-2007, 03:29 AM
i'd look into the most undervalued currency relative to the dollar.

of course the dollar crash may drag everything else along with it. Precious metals are a bit high right now, but they'll keep going up.

I highly recommend silver over gold right now. More industrail use, and it's about as scarce as gold...but around 5 percent of the price. (?)