Monday, October 26, 2009

Is Christine Romer Mentally Handicapped?

This is a serious question.  The following statement from her is, unequivocally, the dumbest comment I have ever seen issued by a public employee in a position which gives them influence on public policy:

"White House: health reform key to tackling deficit"  Article Link

Talk about an oxymoronic concept:  Government program and fiscal austerity.


  1. "White House: health reform key to tackling deficit"

    I think she meant the health care reform will cause us to be tackled BY the deficit, otherwise I have no explanation!

    One down day and I am seeing plenty of traders getting ready for gold at $986 on it s way to $820. I wish it would go to zero, then we could BUY IT ALL!

  2. gyc, that's a hilarious comment on Romer.

    I've been doing gold/silver now for almost 8 years. During that time, you know gold is in the middle of an unstoppable move higher when "experts" come out of the woodwork with "market at a top" and "big correction coming" calls.

    The best is when Prechter comes out and calls for gold to go back to $100. I remember when gold was tackling $400, Prechter came out and issued a "gold going to $50" call and all the market shadow traders dumped their positions and had to pay well over $400 to reload. Prechter recently issued another "gold to collapse in price call." Thanks Bob.

    The other moron is Gartman. I hate it when he gets long gold, because gold drops $50 almost every freaking time he gets long. He's a little better with his sells. Although, I remember in late 2005, he sold at $550 and said he would wait until $400 or $450 to reload. Gold coiled around $550 for a short time and went on to top out over $700 in May 2006. Right now Gartman is neutral to bullish, but thankfully has not added any recently.

    Right now I am looking for gold to continue moving sideways while the Fed steps on gold and props the dollar during this week of heavy Treasury issuance. This has been the pattern since March. I believe gold will start moving higher again in early November. I think there's a chance we'll see $1200 before Christmas.

    That's how I'm trading gold/silver/miners right now. I believe by May we'll be looking back to late October with disbelief at how cheap $1040 gold was.

  3. Dave,
    I just finished tonights post and I hit the "prop the dollar for the bond sales" angle as well. The buck moved up a whole point today!! A 1/75th move and the whole market is acting retarded. BIDU did not help things AH.

    I cannot wait for Quant Easing 2.0 to roll out somewhere in Jan/Feb. Call me back about Gold $100 then.

  4. LOL. QE 2.0 might roll out before Jan. They're already writing Stimulus 2.0 in Congress...saw your blog post and added a post about football.

  5. Dave,
    you commented on the last post, I have fresh stuff up!

    You are right though, east coast gets killed on Sunday/Monday night games. I get up at 5am all week and a midnight bedtime does not help things.

  6. Actually, I meant to put that comment under your post tonight.

    You should go to and do the free 2 week trial. All you need is an email address - no credit card required. Read the nightly post under the James Joyce Table. That's Bill Murphy's Midas report. I don't know how anyone can play in the gold and mining share market without reading Midas every night (he publishes M-F and occassionally on the weekend).

  7. Dave,
    I am already there, thanks so much for the tip, best content on the web re metals!