Today's Frequently Asked Questions

The wave of phone calls from all over the world overwhelmed me once again today.

Here are your answers:

1. As gold rose and the dollar slipped once again into the .7200 area a poor picture was being painted as legislative action neared for Fanny and Freddie.
2. It seems that the key panic point is .7200 on the USDX.
3. The Fed's perma-hawk spoke loudly about what will not happen - Fed increases of the discount rate.
4. Crude came down today, blamed on the apparent hurricane fear fading. Major support starts at $125, and if that is not the bottom it will not be far below.
5. All the dollar bulls and energy bears were pulled out of the closet as talking heads.
6. Fancy accounting footwork is the entire reason why some bank earnings look better. They are not. In fact many of the best looking ones are the worst off.
7. $25 billion for Fanny and Freddie will not cover a $5 trillion problem. It isn't even worth being called a bandage.

After all the substance-less noise used to paint the day better passes, we return to face the 3rd attempt at $1000 and the euro moving past $1.60.

Gold is headed to $1650 and the euro to $2. That is only for starters.

Respectfully yours,