Perfect Storm Brewing
The markets are in turmoil for the same cadre of horrible trends as usual, starting with Spanish bond yield surging above 7%, uncertainty about the toothless European Summit, PLUNGING British bank stocks on the heels of “LIEBOR” fraud (Barclays, down 17% today alone) and unattainable ATM funds (RBS, down 13%). Throw in the Supreme Court’s insane upholding of Obamacare, in which the only justice to vote against his party was Chief Justice Roberts, and further weakness in jobless claims, and you have a perfect storm brewing.
The MSM will say PMs are down due to “deflation fears,” but all we saw today were the typical, DAILY PAPER attacks at the COMEX open and PM Fix. I’ve even seen articles attributing the decline to the Supreme Court decision – but guess what, the big WATERFALL DECLINE occurred five minutes before the announcement, an obvious ploy to use the announcement – wildly gold bullish, by the way, as “cover.”
Andrew C. ("Ranting Andy") Hoffman, CFA
Miles Franklin Ltd.