Economics and Investing:

Several readers have written to ask about the recent slump in precious metals. This can be attributed to the ongoing sovereign debt and derivatives crisis in Europe, where there are wholesale liquidations of everything. Folks are scrambling to raise cash to settle CDO contracts and to meet margin calls. The crisis will keep the price of metals down until perhaps October. It doesn’t mean that the bull market in metals is over. Far from it! Just look at this as a good buying opportunity.

Like a Hollywood set, housing inventory looks to be low only because that is what is being presented. Orange County foreclosure pipeline twice the size of non-distressed MLS inventory.

AmEx sent us this: Forecast: Taxmageddon Would Cause Another Recession

G.G. flagged this piece: One on One with John Williams of ShadowStats

Items from The Economatrix:

Fewer Americans Than Forecast File For Unemployment Claims

US Service Industries Grew Less Than Forecast In June

Are Global Central Banks In Panic Mode?