On a serious note, here's my trend following thought of the day...
With the impending Fanny and Freddy bailout to the tune of at least $400 billion (I have read that Fanny and Fred's combined exposure to Alt A & Subprime is closer to $1.5 trillion!), I am betting a lot of treasury holders will start to question our nation's AAA rating and begin to buy gold. This seems like a reasonable train of thought, nevertheless, I am having an economist friend check out the rationality of this thought as we speak/type. I think that investors will at least flock to gold because the Govt. is definitely going to keep the printing presses working overtime (at least to the tune of $400 bln to $1.5 trillion dollars). I will probably buy some GLD tomorrow, assuming it is still under $100 (aka $1000).
P.S. Karl Marx is laughing his ass off, while Larry Kudlow is crying in his home made "Goldilocks porridge" this evening. And if you buy the GLD because of me, you might lose money. Paraphrasing "The Fly" at IBC is always fun.
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