One, the recent OPEC deal that limits production has a decent chance of sticking. Two, and more importantly, destabilization in the Balkans is MUCH more significant than the public thinks. Recent rioting in the streets of Athens, an attempted attack on the U.S. embassy in Moscow, and Russia s move to break off direct ties to NATO suggest a crisis that has definite escalation potential. Any doubts that gold is no longer the safe haven it used to be can now, officially, be put to rest. Canada, a major gold producing nation, agreed to the idea that IMF nations should sell down part of their gold reserves and use the money to help out less developed countries.
Details are fuzzy and hard to come by, but the crux is that even Canada has given up on gold.
They met this week, after this article was put to print. It is likely that Greenspan and Co. kept rates stable. But you can bet that they are watching the two factors listed above and thinking that this golden era might just continue without their meddling. Good news for MBAs with lots o debt. The Shakeout Begins Those of us who pay attention to the market, and that s just about everybody these days, have watched the Internet stock bubble with a mix of awe and fear.