What a crazy world we live in. Yesterday, gold staged it’s largest rise in history (11%). Gold rose as high as $920 USD per ounce. Then about 14:30 eastern time, gold crashed and stocks rallied. Stocks ended with a big up swing and the US dollar index rose 11 basis points to 78.24.

So what caused this alchemical change? US treasury secretary Hank Paulson spoke about a plan “to deal with bad debt similar to the creation of the Resolution Trust Corporation in 1989 that resolved the US savings & loan crisis.” That caused the market to rally. Now get this: there is no plan. There was no deal. Hank “The Honker” Paulson merely “spoke about” a plan.

Spider Webs? Welcome to the new world of the government run economy.