……………….gold has fallen 8.5 percent since Ben Bernanke started talking about tapering the Fed’s bond-buying a month ago……………
Of course, that’s nothing compared to gold’s looong bear market from 1500 to 1965. As you can see in the chart below from Goldman Sachs (via Zerohedge), it lost over 80 percent of its value compared to inflation-adjusted British pounds over those four-and-a-half centuries.
The “t-word” is Bernanke’s Midas touch. It turns gold back into gold. No longer will the shiny metal offer better returns than companies that actually do and make things; instead, it will just be the money-suck it’s been for centuries on end.
via Gold Was a Horrible Investment from 1500 to 1965 – Matthew O’Brien – The Atlantic.
Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 08-06-2013
Housing prices in Canada have been relatively flat so far this year but there’s a “downside risk” going forward, particularly in the country’s largest city, according to a Scotiabank report issued Friday.
“Toronto’s housing market is correcting in the wake of affordability pressures, inventory build, changes to mortgage insurance rules and more cautious lending policies,” writes Scotiabank economist Adrienne Warren.
Report sees ‘downside risk’ in Canada’s housing sector – The Globe and Mail.
The annual deficit has fallen 32% over the first seven months of this fiscal year compared with same period last year, according to Congressional Budget Office figures released Tuesday.
A major reason: A big jump in tax revenue
Deficit down 32% so far this year – May. 7, 2013. – CNN MONEY
A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens.
That’s according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.
“I think we are heading for a worse economic crisis than we had in 2007,” Schiff said. “You’re going to have a collapse in the dollar…a huge spike in interest rates… and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.”
Schiff: 2/3 of America to Lose Everything Because of This Crisis –Money Morning.