30% of the US residential housing market with mortgages are underwater. (Ie, the mortgage is worth more than the home!) Between Freddy and Fanny that totals approx 1.5 trillion $US which is 30% of their mortgage commitment. That's just the leading edge of a growing financial disaster. Currently there are 8,000 forclosures/day in the US of A. As these properties "hit" the market resulting in further weakness fueling an already "vicious" cycle extending into the mainstream economy with end nowhere in sight.

Haul in the sand-bags, the river is still rising!

IMHO, and that of many others, as this unfolds and more and more paper (fiat currancy) is thrown at the problem, prescious metals and their equities are one's only "insurance" against some sort of currancy meltdown. (Which, if you haven't noticed is already happening!)

$2500.00 gold is just a few more Bank failures away! (Tough to put an exact # on how many!)

The pictures of the line-ups 4 abreast around the block at the Chase Manhatten in NY in 1980 to buy Gold and Silver bullion come to mind!

Add a little more inflation and the stage will be set for general "panic!"

Gold/Oil ratio will once again move upward to the historic high of 21. (Currently near its historic low at 7!)

At which point get your a$$ out of prescious metals and related equities!

Bargains will abound making the world look like a Sally Ann thrift. With your new found wealth who'll be better positioned to take advantage of everybody else's folly?

RUF