Gold & Silver Guy Makes His Case & A Rebuttal
$10 Oil Follow Up – The case for Short Term Deflation
Maloney: “MBS are the big problem for the financial sector. MBS only speed up the global transmission of problems through the banking sector. It’s the zero-down loan that threatens to suck the world economy into a black hole.
In the end, I think we’re in for a wild roller coaster ride, with a few whipsaws thrown in. First the threat of deflation, followed by a helicopter drop, followed by big inflation, followed by real deflation, and then followed by hyperinflation.”
Worth looking at his presentation, taking you through some very interesting charts
Automatic Earth Rebuttal: Some agreement, some not so in agreement:
“Stoneleigh and I can’t see how the price of gold -and silver- can hold up, let alone go up (as Maloney thinks), if and when the very rounds of never-before-seen deleveraging and deflation Mike predicts come to pass. We think that it will force a huge amount of people who hold gold, to sell it into a buyers market. And those left standing afterwards will not be numerous enough to hold up the price either. It’s not that gold can’t reach $20,000, but that it can’t do so in today’s dollars.”
BTW: Chris Whalen quote: “Outgoing BAC CFO just made an explicit connection between mortgage banking expenses and HPI (Housing Price Index)”.