Grass Roots Economics Scares the Big Guys
It seems Bernanke agrees with our comments yesterday. What if we are both wrong. Today’s action in gold cause me to ponder the following:
1) What if the Greeks have a referendum and tell everybody to take a hike?
2) What if we did the do the same thing here, Congress isn’t getting anything done.
There is not question that grass roots movement are strong on action and are kind of like building a house with a sledge hammer. They get the job done but it looks a little messy.
The next few days are crucial to the stock market. If things do go south in Greece I will probably move to the short side in stocks and re-figure all the models with a big dose of chaos. In the meantime I am watching gold move higher and get very close to major resistance at 1776 in Dollars and 1283 in Euro’s.