Friday, 17 August 2007

Big News For Gold! The FED has just buckled

Just on the newswires

"The Federal Reserve, declaring that increased economic uncertainty poses risks for U.S. business growth, announced Friday that it has approved a half-percentage point cut in its discount rate on loans to banks.

The action was the most dramatic effort yet by the central bank to restore calm to global financial markets which have been roiled in the past week by a widening credit crisis."

General equities will rise but for gold/silver and related stocks this is what they've been waiting for.

However, it looks that the problems in the market are deeper than has been admitted so far. There may be another deluge soon. Gold and its PM stocks has not decoupled from the main market - yet.

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I teach Film, Media and English Lit.