Bear Stearns bleeding ........ More to come?The magnitude of a MAJOR world (US) financial organization dropping a whopping 45% in their share price in 1 day is hard to comprehend. In fact BSC's share price is down about 80% in the last year. We have to go back to October 1999 to find a $31.00 share price like we have now. For those a little foggy about Bear Stearns, here is a very brief profile:
The Bear Stearns Companies, Inc. operates as an investment banking, securities and derivatives trading, and clearance and brokerage company serving governments, corporations, institutions, and individuals worldwide.The company was founded in 1923 and is headquartered in New York, New York.
For me, this is just another very strong "BUY GOLD" signal. The carnage of a busting real estate market combined with a HUGE US trade deficit, ballooning government debt and a shocking personal debt situation is basically a textbook scenario to get your hands on hard assets and far away from the printing press wallpaper called the US dollar. I think someday the US will come out of this mess in decent shape, but not without a lot of pain between now and then.
The Eliot Spitzer situation sure doesn't help the situation of lack of trust for politicians. When you get a case of "The enforcer becoming the offender", another notch of confidence gets chipped away. Situations such as this in a small part (in my opinion) also encourages investors to head towards a commodity that can not be produced by man, a flight to gold is a natural path to those with mistrust.
"Bailout Ben" and "I am outta here soon Bush" sure don't instill confidence in me that the worst is behind us, again the "BUY GOLD" theme only gets stronger.
Folks, I think 5 years from now we'll look back in amazement and reminisce about the good ole days when gold was only $1000/ounce.
As for MDR? .............................. 2 million+ ounce of Gold will bring a very attractive offer in the coming months. I know we would all like to get Lindero sold and then start concentrating on Rio Grande even more intensely but these are the cards we have been dealt so I AM NOT SELLING, no shakeout with your bud SL.
Cheers, SL
PS: Who will be the next big financial institution to get roughed up? It is just a matter of time before we see $1500 gold.
Cheers, SL