Agoracom Blog

Can We Trust Wall Street and The Watchdogs? Will Gold Rule The World?

Posted by AGORACOM at 11:14 AM on Saturday, November 3rd, 2007

Good morning to you all. First, let me apologize for the hiatus. It hasn’t been a complete hiatus because I’ve seen most of you at the two large conferences we sponsored (and I delivered speeches at) over the last couple of weeks PIPEs Conference and Toronto Resource Investment Conference.

In addition, our “Investor Controlled Discussion Forums” launch continues to shake the world of small-cap discussion forums, as we broke through 400,000 page views on Thursday – and climbing. Most of you have been in daily contact with me via e-mail and posts around the site as I chose to personally get involved in tech support for the last 10 days.

I’m back now and I’ve got a great article for you to read, especially those of you that are investing in gold as a hedge against a US economic collapse. The gist of the article may not come as a surprise to you – but the underlying support for the article is compelling.

Moreover, the source of the article is Roger Ehrenberg, an ex–Wall Streeter and author of the financial blog Information Arbitrage – a blog I read religiously. In short, this guy knows what he is talking about. He isn’t fringe, he isn’t an extremist. He knows the game and he is spotting some real cracks in the system that, according to him, will result in significant market pain.

I can try and point out the highlights but this is a story worth reading. It can best be summarized by his opening paragraph:

The Root Cause of Today’s Market Turmoil?: It’s a Matter of Trust

Trust in our government. Trust in our financial institutions. Trust in those who play the role of “trusted adviser,” regardless of whether or not they are considered fiduciaries by law. After taking a big step back and asking the question “Why are the markets trading so poorly, and why are financial institutions in particular getting crushed?” the answer boiled down to one word: trust. Or the lack thereof, as seems to be the case today.

Great Saturday afternoon reading – and even better Monday morning investing.


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