The U.S. banking system is not safe from the unraveling European sovereign debt crisis. Alex Jones, the T-Rex of conspiracy radio, and his guest say it is time to take the money and run.
Jones� guest, the inflammatory Gerald Celente, founder of The Trends Research Institute, said investors should forget U.S. stocks and bonds and put it in cash, or the usual favorite of the apocalyptic, gold and silver coin.
�The whole thing is a game thats rigged by Wall Street,� says Celente. �The whole system is going down. Pull your money out your Fidelity account, your Scwhab accout, and your ETFs.�
On Nov.14, Celente toldRussian 24 hour news network RT TV that he lost over �six figures� in gold future contracts when MF Global collapsed Bear Stearns style, seemingly vanishing from the market overnight.
Hardly one to mince words or mask his disdain for what he sees as a Wall Street-to-Washington crime syndicate, Jones� show on Thursday is a testament of Main Street�s overall caution about investing after being fully or nearly totally wiped out in 20008.
Celente�s view is not relegated to just fringe internet radio programming. He�s been on nearly every network news show over the last 15 years, from Oprah Winfrey to CNN. In 2009, one of Celente�s employees took his advice and switched nearly 60% of her 401k into gold. Forbes said she overreacted, but the only security to perform better than the SPDR Gold (GLD) ETF this year, for example, has been Chinese internet stocks.
�When I say take your money out of the banks and put it under the mattress, this is not advice,� Celente says. �Personally, I buy gold coins from reputable companies. I take my money out of investment funds and I buy gold and silver. You need the three g�s � gold, guns and a get-away plan.�
A getaway plan from what? As Jones and Celente see it, the collapse of the Western financial markets and contagion from southern Europe. On Thursday, bond spreads from Spanish and French debt rose on fears that Italy�s problems will spread throughout the region.
Spain and France struggled with government bond auctions early Thursday. Nobody wants them at current yields, so yields will have to go higher to represent the risks involved with buying south European government debt. It might not just be Greece anymore. It�s Italy. And then Spain. And them Portugal might get worse. And up north�Ireland. Where does it end?
Spain 10-year bond yields on Thursday rose to their highest level since 1997, with interest rates rising 1.5 points above the average paid at similar auctions this year. Reuters cited unnamed sources calling the bond market �pretty awful� to �dreadful.� The euro fell on the foreign exchanges in response.
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