Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Dan...

Thanks for the Puplava article - long, but very good and it echos a lot of what I have been saying. I highly recommend reading it.

Unlike Puplava, I am not convinced we get a big down here. Every indicator I look at says it is coming, but this is such a critical area for the Greenspan Gambit and he has already committed so much money that I don't see how he can let up now, especially since he can create an unlimited supply of money out of thin air every day. For that reason only, I think we might well add a new leg to the upside here. Artificial, yes, but so were the bottoms of July and October. Artificial or not, they all count, and based on recent performance I would guess that AG has at least a 50/50 shot of getting a new leg up started unless unexpected bad news hits.

Puplava also has more faith in the effects of the Greespan Gambit than I because the odds of it working are almost zero, in my opinion. I expect us to continue down into recession, and that recession will be a global one, with high risk of systemic financial dislocation in Japan and South America. Because of that, I believe that whatever AG is able to accomplish in the short term will be all he gets, as economic reality takes the markets to new lows this year, probably this Summer, but almost certainly by Fall.

Just my opinion, though.

mlsoft