wall street

July 24, 2011 at 11:22 pm | Posted in Uncategorized | Leave a comment

Get ready guys, August 2nd is 8 days away and wall street is bracing for a possible downgrade of US bonds. If there is a loss of confidence in government debt, interest rates will skyrocket and investors will need more collateral. If they can’t, then THEY default. Also, although most people don’t realize this, most trades are done automatically by computers using learning algorithms. The problem with this is that you can get a cascade-type of effect where selling begets selling and market crashes occur.

Gold, silver, commodities, and bitcoins should hold up well in the event of a market crash, at least in theory.

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