"Should I buy gold?"

It’s probably not a bad idea. I’m working on the right way to play all this. Right now, it’s ‘put everything in t-bills’ as it’s only a matter of time before Citi and B of A fail and there still is a lot of uncertainty as to exactly how that will play out.

Looking 1-3 years out, the end result of all these bail outs is going to be high (possibly hyper) inflation. At that point, government bond yields will go up so they might not be a bad place to park longer term [safe] money. That should also be a good time to be back in stocks, property and commodities. As to the exact timing of all this, it’s hard to say, but essentially we have a slow motion train wreck happening. The first thing I’m looking for is any sign of a recovery in housing. Currently, prices are slumping at over 2% a month. With the 1.5 trillion in option arms and alt-a loans starting to reset this year (through 2011), we could have a ways to go.