The Treasury’s Master Plan Won’t Solve Much Soon
The U.S. Treasury has announced a far-reaching plan for a general overhaul of financial regulatory bodies. Among other items, the Commodity Futures Trading Commission is to be absorbed into the SEC. Insurance companies will be given the choice to opt-in to a sceme of nationwide licensing, which on the surface will redude the duplication of supervision which is inherent in the necessity to comply with the laws of each state in which the insurance company wishes to do business. It appears that this report has been a long time in the making, and the events of recent weeks in the financial markets were an add-on to the report. The gold and silver markets did not directly anticipate the issuance of the report, but reacted in a drastic manner just a few days ago when the euphoria which had built up over many months finally collapsed. The Japanese Candlesticks formations in both gold and silver foretold a sudden and severe falloff in prices, and those investors who had correctly read the signals stood to profit in the downturn. Additionally, those who were heavily invested in gold and silver, or both, were given advance warning and were able to protect their investment by taking action on the downside.