On Tuesday, both gold and silver started to decline at one of their usual times…about 3:00 a.m. New York time on Tuesday morning…with the bottom coming at the close of London trading. The price managed to recover somewhat after that…but once again (at 3:00 a.m. New York time on Wednesday morning) gold and silver prices began to decline. There was a temporary bottom at the London close again yesterday, but the recovery was short-lived, and both metals were taken down right into the close of after-hours trading on the Globex.

I assume that bond buyers are all drug addicts who are not aware of what they are doing, morons who are not aware of what they are doing, or grubby slicksters who are buying them on behalf of drug addicts and morons! Hahaha!

Sara Nunnally says Middle Eastern states are using their petro-dollar Sovereign Wealth Funds to boost their international profile and reduce dependence on oil. She says “following the money” is a good way for investors to profit from this shift in global economic and financial power.

Unprecendented government action is beginning to thaw credit markets. Commercial paper is being traded again. But this credit crisis is far from over, says William Patalon III. The trickle of finance will only reach top-grade companies. The weak will either go bankrupt or be swallowed up by their healthier rivals.

The U.K. government yesterday (Wednesday) announced its own banking bailout package with an $87 billion (50 billion pound) recapitalization plan for the ailing British financial sector.

With the commercial-paper market evaporating - causing its ability to operate to do the same - Morgan Stanley escalated its frenetic search for a well-capitalized partner to help it restore investor confidence. Morgan Stanley shares have lost more than 40% in the past week, leaving Morgan Stanley Chief Executive John J. Mack seeking a tie-up with a commercial bank.

EADS Eyes Tunisia; McDonald’s Thrives on Slump; Reynolds American Makes Cuts; DOJ Hires Big Gun to Scrutinize Google-Yahoo Deal; Google Space; Pending Home Sales Collapse; Manpower Decline; Deficit to Soar to Record in 2009

Analysts are trumpeting the recent drop in oil prices as a step toward normalcy. But is this celebration premature? Or perhaps even misplaced? After all, we all know that over the long haul, energy prices are headed in only one direction - higher.

The British pound fell to a 22-month low, after the Bank of England (BOE) offered a gloomy outlook for the U.K. economy and the chance of an interest rate cut increased.

Two bits of news illustrate ‘the squeeze’ taking place in Britain. I’ll get to them in just a moment — and I’ll tell you what you can do about it. But first, what is ‘the squeeze’?