Getting SMOKED!......................from Rico

Equity investors are truly getting SMOKED at the moment.

There is a LOT of pain in the major European markets right now, they're 'off' by a couple percent and still dropping.
- Well, things could be worse...Athens just hit a new 22-year low!

I cannot tell if the idiots are in a 'flight to safety' and actually are fleeing into the US Dollar from Gold, or if the usual suspects are using problems in Europe as a smokescreen to cover their short positions.
- It IS interesting to note that while the 'dumb money' is running in panic to the main exit (Dollar), they quite fail to notice that the 'smart money' and the 'invisible hand' are both calmly accumulating and stuffing their pockets with Gold while quietly walking in the opposite direction.

Folly can be defined as preferring the "safety" and comfort of fiat paper to that of physical bullion, especially when (a) nothing has been 'fixed' and things are getting worse, and (b) we are almost guaranteed that QE-LTRO (call it whatever you want) will continue to infinity making all fiat increasingly worthless in the process.
- Kipling had it right, with his "if you can keep your head when all about you lose theirs" (well, you get the 'gist' if not the exact quote), and this advice was as sound in the days of black powder and the rolling-block rifle as it is today in the days of MF Global and JP Morgan. Things are not nearly as 'dire' as "Rourke's Drift "or the "last stand at Gandamack" were!

This truly is time for keeping a "stiff upper lip".....and holding your fire until you can see the whites of their eyes ("Be right. Sit tight. " J. Livermore). When the smoke clears, all will be different!
- Sadly, too many of the sheeple subscribe to the other investment philosophy: "When in trouble, when there's doubt, run in panic. Scream and shout." Too bad, so sad, but this has never worked before and it won't work now.