It was a week of reinforcing data that saw most economic indices moving in the same directions. Merrill Lynch was the first bombshell report with their 8 billion dollar loss in the quarter. The bright spot was technology, with great results from Microsoft, Google, Apple, and other Silicon Valley companies.
It looks like we're headed for another 25 basis rate cut, which means good news for gold and commodity funds, and bad news for the dollar and American consumers.
However, there may be bigger issues looming, as new reports indicate there may be 2 million foreclosures, with a corresponding wipeout of wealth and tax base. The credit crunch hasn't been solved, and the chance of a true recession have gone up again.
As everyone knows, oil also hit record highs, with concomitant record gas prices.
And finally, the number of buyers of American dollars had it's first hard data report, and unfortunately record numbers of people are leaving the dollar. There is no longer any active strong dollar policy, and the rest of the world is routing around America, with China selling to Europe as America gets priced out of the economy.
My advice is still the same: don't save dollars - put them in gold, Euros, or commodity funds, and watch while your purchasing power increases over your neighbors who thought they were rich because their house was appraised in 2005.
Report: 2 million homes to foreclose
Gold scales 28-year peak
Oil prices shot to an all-time high above $92 a barrel
Dollar Falls to Record Low Versus Euro
Credit crunch has not been solved
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