I was musing about a scenario that probably plays itself out thousands of times a day in the formerly great state of California, where I reside:
- A person who has a negative net worth (due to being severely underwater on his house)…….
- goes into Bank of America, an institution that would have been bankrupt, were it not for……..
- the United States, which is also technically insolvent……….
- and gives the teller an IOU from the State of California, which is no longer issuing checks due to its own insolvency.
Pretty sad, isn't it? This isn't fiction, though. The above situation is repeated every day of the week. It's only more dramatic now since California is issuing scrip for its bills now.
I'm back home, and I'm reveling being surrounded by big monitors again. Being a holiday weekend Sunday, I only looked at a few charts, and I have another outlandish and bold prediction to make: by autumn of this year, Gold will return to about $700 per ounce, and crude oil will be in the $30s or low $40s.
And with that, I shall return to my Sunday New York Times. See you Monday morning!