SW KS, near Dodge City | Pat H - 8/24/2015 10:54
Also with so much of the economy on some type of welfare, the 401K/IRA contributions have to be slowing way down (especially with under employment). At some point don't the wallstreet folks starting getting low on cash to throw at the market? Maybe there isn't a bunch of money waiting around to invest in gold? Our meager bank accounts are not going to push the price anywhere.
Consider that the volatility and price runs ups are created by massive amounts of money flying around. If the "massive amount" is now not so massive, the balloon deflates and down it goes.
The 401K/IRA contributions are actually one of the things that has confounded some of the economic activity models. With boomers nearing/at retirement, they've really ramped up those contributions, so any excess discretionary funds have been saved/invested and not spent like a lot of models assume.
That's the problem. IMO, our economy is not based on a fixed asset price level at all, it's based on the velocity of money. 100 bucks turned once doesn't produce near the economic activity that 10 bucks turned 100 times does. |
Memories of 2008 are dancing in my head this morning.
