The word "stratospheric" comes to mind. The 1970s will look like a dress rehearsal for what is to come. Heating Oil ($HOIL) has a near 100% coorelation to $WTIC. $WTIC has a high coorelation to $GOLD, inverse to the USD. In Bush-Paulson's proposed bailout which is extremely hyperinflationary, oil and gold should be a guaranteed moonshot. I would also like to add that if it gets passed and the USD falls further (given inverse coorelation to gold and oil), the "nuclear option" of China, India, and the Middle East finally dumping US dollars becomes even more real. The bailout plan could be the nail in coffin for the US dollar.
If the Bush-Paulson's bailout plan does not go through, I see a similar outcome, however, it will take the rest of the world down with us at a faster pace. On the flip side, if the bailout plan does go through, the damage will be mostly contained to the US. I hope they can come up with some better options, but I am amfraid there may not be any. One thing I hope does happen... make all those CEOs that took home millions the past 5 years pay back all bonuses or go to jail. Countrywide's CEO took home almost $500 million the past six years.
Jan 4 - We have transitioned into a bear market. Completely different rules apply.
May 23 - IMO, any price at/above this close makes a great Nasdaq/SP500 short.
