Gold, The Misfortune Of One is The Happiness of Others

The misfortune of one is again the happiness of others ... and vice versa. After passing record after record, the "favor" of the crisis in the United States and the European Union, the price of gold has suffered these last hours of renewed investor confidence international markets.

The ounce of gold has dropped sharply Wednesday, falling below the $ 1,800 in a sharp drop of nearly 8%. While it is however necessary to correlate the thing, remembering that the day before the gold price reached a new record high trading at more than 1,900 dollars, a trend following a wave of profit taking after the outbreak observed in recent days.

By 1430 GMT, the price of an ounce of gold has tumbled to 1761.28 dollars on the spot market, dropping more than 150 dollars compared to a record 1,913.50 dollars recorded on Tuesday in exchange Asian.

Investors appear to have diverted a time of gold and its safe haven qualities, reassured by the increase observed on the European stock markets, it following the announcement of a rebound in durable goods orders in July higher than expected.

Also note that the Shanghai Gold Exchange, China market of precious metals, said Tuesday it had increased its "margin calls" - the amounts that investors must file with the operator for each position in a futures contract - making of facto less attractive investments in gold.

While the August 11, the CME, the exchange operator COMEX, New York market of precious metals, already noted by 22% its "margin calls", passing $ 7,425 per contract, some seem to fear a further increase. Sensing a desire to remove the "weak hands" who lack cash.

Hurricane Irene could also add the financial woes of the United States

Not life grand? Hurricane Irene has not yet reached the coasts of the United States that some experts argue already figures on the possible financial consequences of its passage. According to Kinetic Analysis, a firm that develops computer models of any damage that may be caused by bad weather, the weather event could cause up to twelve billion dollars in damage on the east coast of the United States if the projected path by Meteorologists official is confirmed.

If I were cynical, I could say that the situation would represent almost a "windfall" for Obama, the financial damage caused by storms may eventually merge with the negative consequences of lack of rigor of the American government on the management of public deficits. According to the national hurricane center based in Miami, Irene has to hit North Carolina Saturday and Sunday back to New York where "a very dangerous storm" could lead to rising water 3 to 4 meters.

If one believes Chuck Watson; director of research for Kinetic Analysis, this scenario would be the worst possible in current situation. It is true according to an estimate made by NASA from satellite observations; Irene has a diameter of about 820 km, equivalent to nearly a third of the total length of the U.S. east coast (2675 km).

The probability that the hurricane hit New York at the height of its intensity remains small, then context would reduce the "bill", the damage in this case could "be limited" to a range between 5 and 10 billion. The firm is nevertheless clear that a difference of 30 km of where the center of the storm will strike "can literally double the value of the damage."Kinetic Analysis shows "If it goes directly to the City of New York, even a low-intensity hurricane could easily cause one billion of losses".

Was The United States Victim of The Collapse Of Euro?

The Euro, the fall guy accused of all evil.... Including the US markets tumbled? Not avoiding any scheme - as heavy as it is - Alan Greenspan, former chairman of the U.S. central bank (Fed) said in Washington that the euro was "decaying”.... Even better than the misadventures of the European currency was explaining the current difficulties in the U.S. economy.

Not life grand? Still, many Americans could join forces with his words ... history to find a culprit. According to Greenspan, European banks are in trouble because they hold debt securities in countries such as Greece. "The reason we are so slow is the level of uncertainty" caused by this situation, he said bluntly in an analysis still a bit fast....

A few days ago, Jacques Delors, former president of the European Commission - who initiated the single market - and former Minister of the French economy has in turn criticized the policy of the leaders of the euro against the current crisis. Believing nothing less than the single currency and the European Union would be "the brink".

History to put the record straight ... Still remembers that Alan Greenspan was one of the main instigators of financial deregulation in the United States. Which is widely considered to have “contributed” to the outbreak of the crisis?

The former head of the Fed, however, still dismissed the "allegations" of economists saying that the policy of low rates led the Fed from 2003 to 2005 is largely responsible for the housing bubble, which burst caused an unprecedented crisis.