As the market climbs up to new highs, and investors get their confidence back. The real problem lingers on. Is the economy which is out in the wild surviving. Many think so. And further more with the injection of massive liquidity into the markets, the federal have again flooded the banksters accounts with money.
The financial systems around the world are still on edge even if their is massive amounts of cash being thrown around. Bernankes seemed to have just plucked money from thin air and given to those that needed it the most. While this looked like a recovery, it was merely one of the worst get-in-devt-overnight scheme we have seen in history. To throw good money in after bad has always spelled disaster when we look back in history.
These cashed up banksters greedy as they are, are again sitting around the roulette wheel hoping and praying for their numbers to come up.
Yes they are sitting at the gambling tables again, with massive amounts of cash and buying things left, right and centre. As things are still risky in general, gold has been increasing due to these banks investing heavily in precious commodity. It is funny that this is playing out this way. As 10 or so years ago these banksters would have laughed if you told them to invest in gold. WHY? Because at the time it was deemed high risk and was not performing well at all. Now those tables have turned.
There are some interesting times coming down the track. Investing will not be as it use to be. The real economic recovery will not be seen for several years, as the credit crisis took many years to play out, so to will its recovery process.
We are starting to see many trends develop in the economic environment, and these included:-
1) Global Natural disasters that are quickly affecting all areas and walks of life.
2) more Financial crises developing whilst the credit crisis is recovering.
3) After the rapid rise of precious commodities, there will be major Falls in some prices.
4) Many hidden scandals will be revealed and surprise those not suspecting.
We are living in interesting times. But the next decade will surely be ever my interesting than the last century.