The Golden Truth: The Housing Market Is "Lights Out

Thursday, July 1, 2010

The Housing Market Is "Lights Out - Look Out Below"

"The number of buyers who signed contracts to purchase homes dropped in May to the lowest level on record, a sign the housing recovery can't survive without government incentives" link: The Irreversible Death Spiral

This tells me that the Fed/Govt will soon start throwing trillions of manufactured paper money into the system, perhaps even sooner than I anticipate. Gold will soon start anticipating this policy action.

18 comments:

AnonymousThursday, 01 July, 2010
Something tells me that there is fraud and criminality in every move.

The dollar falls like a lead fart
And gold falls like a lead fart at the same time.

Time for pitchforks and a rope noose.

Politicians and banksters...string 'em all up.
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JayhawkThursday, 01 July, 2010
HUI just getting crushed today. Already down 5%!
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AnonymousThursday, 01 July, 2010
You guys were mentioning on this blog that gold/silver doesnt have much upward resistance. It seems it doesnt have much downward resistance either.. HaHa!
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Dave in DenverThursday, 01 July, 2010
putting a lot of cash we raised 2 weeks ago to work here.

remember in gold/silver/mining stocks: buy fishing lines, sell rhino horns
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JoeThursday, 01 July, 2010
So much for bullish PM chart patterns. What else can we expect from somebody that owns a printing press and the regulators too??

Joe M.
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AnonymousThursday, 01 July, 2010
Lesson learnt. The fed and regulators never go on vacation. Gold bulls do go on vacation... approaching 1200
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Dave in DenverThursday, 01 July, 2010
the bullion banks are covering shorts here. they are buying the gold and mining stocks that "Elmer Fudd" public is selling in fear.

we raised a lot of cash 2 weeks ago. We started deploying it today knowing full well that today is probably not the bottom. we also added a lot of gold bullion.
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HopiumThursday, 01 July, 2010
Tic Tic Tic

More good news Rasmussen poll has the Obama @ -19%.....that is all.
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HalThursday, 01 July, 2010
ok folks--all together now--what happens just before the BS, excuse me the BLS releases its jobs numbers every month?
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anliuThursday, 01 July, 2010
"He is Mr. Mass Destruction," Davidowitz says of Obama. "I mean he is a human destroyer. This guy has spent his way into oblivion and we don't have a budget. He is surrounded by a bunch of complete incompetents, led by himself. "

God I wish he was my uncle.
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JoeThursday, 01 July, 2010
anon,

Check that, the regulators are always OUT TO LUNCH!!

Joe M.
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AnonymousThursday, 01 July, 2010
On sunday this blog reported that "the bullish set up in silver (and gold) has turned insanely bullish".

Why would you be raising cash in the last 2 weeks then?
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Dave NarbyThursday, 01 July, 2010
Anybody else notice that gold isn't selling off like it did in '08? Or am I just talking my book? :p
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Dave in DenverThursday, 01 July, 2010
Re: raising cash. Please note when I wrote that piece. Sunday I believe. We raised cash levels in our fund during the two weeks PRIOR to Sunday. We have done a lot of daytrading this week until today and yesterday before the close.

We made two large bullion purchases today - one gold, one silver - knowing full well we might have to buy more over the next few days to average down.

We have redeployed about 1/3 of the cash we raised in the last 1/2 hr yesterday and throughout today.

In fact I just got off the phone completing our purchase of mint boxes of silver eagles.

I can't know when to time cartel bullion paper smashes. I have a general feeling about when they are coming. I did not foresee today happening but I always expect it will and I make sure we have cash on hand to take advantage of it.

Always: buy "fishing line" charts in the bullion market. Always Always Always.

Anymore questions?
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HopiumThursday, 01 July, 2010
Sounds about right to me Dave....Ignore the noobs and weak hands. This is about long term not daily plays. One must have skin in this game, if your not thick skinned and can;t take your losses, well then step up to the plate I'll personally buy your stash..Cash money.
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AnonymousThursday, 01 July, 2010
Looks more like a lightning strike than a fishing line :)
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HopiumThursday, 01 July, 2010
Looks more like a lightning strike than a fishing line :)

-------------

And stocks are down over 10% and Bonds forget it...all classes are getting hit not just one. In this Holiday environment where thin trading is occurring the take downs are easily done.

Patience prevails.
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Dave in DenverThursday, 01 July, 2010
Today is sandbox play. I've lived thru days when the HUI is down over 10%.

On a %-basis, I bet today isn't even close to being a top 10 down day in the last 9 years.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.