Some Quick Observations

I was chatting with a colleague who told me that his precious metals investing clients were telling him that everyone they know seems to be sitting on homes they bought 20 years ago for $200k that have $700k mortgages and are worth maybe $400k.   To me that is the prototypical profile of any slightly "above median" U.S. suburb.  In fact, although official statistics show that 25% of all homes with mortgages are underwater, I would bet good money that, if we were to use rigid market valuations, the number of homes underwater would be closer to 50%.  The reality is that Greenspan encouraged everyone to use their homes like "ATM's" (remember that famous speech he gave to Congress?) and he removed all credit standards enforced on banks and Wall Street.  Greenspan essentially became the lending-equivalent of a heroin dealer to the majority of the middle class in this country.  I define "middle class" to be anyone who is not wealthy enough to buy a Congressman.  I know there are plenty of formerly multi-million dollar homes in the Denver area that are trading for $1 million or less.  Those folks are not wealthy enough to buy one of the seven House Reps or two Senators here...

Economic Woes Mount:  The latest economic sentiment survey from Gallup shows that 74% of Americans think the economy is the biggest problem facing our country.  That number is at its highest in two years.  Here's the link, which I sourced from zerohedge.com:  No Recovery Here  This statistic supports my post yesterday and further supports my view that the real economy is in far worse shape than is reflected by the phony Government/Wall Street-generated economic statitics release almost daily.

"World on course for next crisis, warns Gordon Brown" - This article from England's Telegraph further supports my view that the action in the global stock, credit and commodity markets is an omen of a possible financial/economic crisis that will be much bigger than what we experienced in 2008.  I thought it might be helpful to hear that view from a global elitist and not just a "chippie"  (British term for blue collar plebian) like me.  Here's the LINK  Keep in mind that recently Carl Icahn, one of the most successful and astute investors in this country, announced that he was liquidating his hedge funds and withdrawing from the markets in order to take shelter from a massive brewing crisis...

And finally - Regarding what I see as persistent and growing Government "creep" into the control of our lives, it was reported today that a Bill was being introduced in the Senate that would restrict the ability of Americans to tap into their 401k's, even if they need the money to live. Here's the LINK  This is just more evidence that the Government is headed down the slippery-slope of full confiscation.  But then again, we know that most State pension funds have already been tapped into and are hopelessly underfunded; now the Treasury is tapping into Federal pension funds, setting a dangerous trend that will become even worse - and that money will never be repaid.  What do you think is going to happen when public workers start complaining about their pensions being used to fund our Government?

Foretold is forewarned...