Wednesday, February 22, 2012
22 Feb 2012
So once again, I will call people crazy like I was doing when silver was doing it last year. Its fun to chase, but it is not prudent. Here we are at the upper 3 standard deviation bollinger band. We could keep going higher in the short term, but the odds are getting more stacked against us. On the bright side, we seemingly broke out of the white resistance line. However, we are now up against an old support line.
As always, remain calm when making decisions.
"... over a protracted period of good times, capitalist economies tend to move from a financial structuredominated by hedge finance units to a structure in which there is large weight to units engaged in speculative and Ponzi finance. Furthermore, if an economy with a sizeable body of speculative financial units is in an inflationary state, and the authorities attempt to exorcise inflation by monetary constraint, then speculative units will become Ponzi units and the net worth of previously Ponzi units will quickly evaporate. Consequently,units with cash flow shortfalls will be forced to try to make position by selling out position. This is likely to lead to a collapse of asset values."
-- Hyman Minsky
at 10:40 PM