Meltdown 2011

I’m sure you’ve all noticed silver and gold going nuts. I believe 2008 will be the year the financial markets all fall apart so please protect yourself and your families.

Remember the list of the top 25 banks exposed to derivatives (the green paper) I had posted on my overhead bin? It’s unraveling quickly.

• CountryWide Financial almost went bankrupt (bought out today by Bank of America to conceal the derivatives they had exchanged),
• Merrill Lynch and CitiBank  (who just fired their old CEOs) are running to the Saudis looking for a bail-out.
• Capital One stock at 52-week low.
• United Nations warned of “clear and present danger” to world economy.
• Foreign Central Banks are no longer net buyers of US debt but now net sellers.
• City of Baltimore is suing Wells Fargo over subprime mortgage lending practices
• Merrill Lynch now forecasts US recession this year.
• Today Moodys threatened to drop the US Gov’t credit rating down from AAA (it’s been at AAA since 1917). 

Predictions: Gold is heading to $1050/oz short term, followed by large swings, before hitting $1650/oz next year. Silver is heading to $21/oz short term before hitting $55/oz next year.  

◊◊◊◊ As of today: Gold @ $891.00, Silver @ $16.06 ◊◊◊◊

Filed under: Markets & Economy, Silver & Gold