Investor Alert: Oil & Gold Remain At Record Highs -- And the Safe Banks Are Buying Oil, Signaling A Bet on Inflation

I don't usually post about the global economy unless it's such a big shock wave, that it becomes a story that may actually affect readers of this blog. (I blogged about the subprime bubble burst three months before it happened, but this is something going down, as we speak.

So, I wanted to post this economic alert because I know a lot of people are invested in the stock market (and the more you hate me, the more likely you are more heavily invested). I feel we may be in for a fundamental shift as to what we are used to seeing. And with the market opening up for the year, down the most since the Great Depression, I think we already are.

HERE'S THE ALERT: Please make sure you follow up with your own research -- and this information may change...but for now...I'm going with THIS:

Sources tell Strategy Update that the banking institutions are pulling money out of the stock market and buying oil, like there is no tomorrow. They must know oil will continue to rise (past $100 -- and then some). Which is a bet that inflation is going to be worse than expected in early '08. Gold will follow oil's rise, as well -- and many of the gold mining stocks are up as much as 8%-9%, as well.

Part of the problem, keeping the price of oil (and therefore gold) high, is the threat of Nigerian rebels trying to seize control of the oil fields, resembling a scenario you would expect to see on "24". And according to Rueters, the attack may happen in days.

To save space here, since this is not your usual Mayor Sam story, I put the Full Alert/Analysis Here

UPDATE: Once again, Zuma Dogg brings you "news before it happens. Here's Reuter's version of the story, in retrospect, that they just posted at 8:22pm this evening. Reuter's follow-up aftermath story to ZD's.

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