The bailout of Bank of America begins, courtesy of Tim Geithner. I don't know why the headline on this article doesn't say "BofA Sells Part Of Mortgage Portfolio To The Taxpayers" instead of "to Fannie Mae." Here's the news report (if you can't pull up the whole article, google the headline and you'll get a link to the entire article) LINK
Rest assurred knowing that most of those mortgages are under water and will default and the Taxpayer will get to pay the costs involved. The Taxpayer's money will also be used to pay the upper management their bonuses for all their hard work in arranging deals like this.
Just a quick comment on whether it's too late to buy into gold and silver or whether or not you should take some profits. The reason to own gold gets stronger everyday. Take yesterday for instance. The Fed has guaranteed zero interest rates for 2 more years. Real interest rates (nominal rates which are zero - less the inflation rate) will be negative for at least two years. Gold ALWAYS ALWAYS ALWAYS goes hgher when real interest rates are negative. Always. Negative real interest rates are like rocket fuel for gold/silver. So the Fed has now guaranteed higher gold for at least 2 years. Wait until QE3 kicks in...
Here's great commentary on the meaing of yesterday's policy announcement from the Fed: LINK Essentially this article explains why the language being used by Bernanke means that the gate is wide open for him to engage eventually in some type of QE3 program.
I'll be out of town for the next few days, so I probably won't have a post until Tuesday unless I see something over the weekend that really pisses me off.