There is never a wrong time to be investing in gold. However, last week's failure of IndyMac Bank, the collapse and bailout of the GSE's, and the sharp rise in the CPI made it more imperative than ever, for you to protect your wealth with gold. I'm going to go over those three financial events and explain why I feel that it's more crucial than ever for you to buy gold bullion now.

The Failure of IndyMac Bank
On Friday, IndyMac became the largest bank to fail in two decades. On Monday morning, depositors lined up for blocks and waited for hours to withdraw their money from the bank. Unless, of course, their deposits on account, were over the FDIC limit.

At this point, no one knows how long depositors will have to wait to receive the remainder of their funds or exactly how much they will eventually receive. That is, of course, if they collect anything at all.

What Could Happen
1. The problems at IndyMac are not just an isolated incident, but indicative of a U.S. banking system that has been deeply affected by the worsening credit-mortgage crisis.
2. The Federal Deposit Insurance Corporation's insurance fund has a capital reserve of $53 billion. The IndyMac failure could use up 10% of those reserves.
3. The FDIC has a secret list of 90 other 'problem' banks. The FDIC chairman has assured the public that its reserves would be adequate to handle the additional bank failures that are expected to occur.
4. A few more well publicized bank failures could cause depositors to start pulling money out of even the strongest banks. A widespread panic could start a nation-wide bank run.

Why You Should Buy Gold
Investors who own gold do not have to worry about FDIC insurance, bank failures, and the danger of holding large amounts of cash. Gold is safe, stable, and secure.

The Bailout of the GSEs
Last weekend, the Federal Reserve and the U.S. Treasury attempted to restore investor confidence in Freddie Mae and Freddie Mac by agreeing to open up their discount lending window (loan money) to the beleaguered GSEs. For the time being, it seems to have worked.

The Treasury is now lobbying Congress for a permission to invest (buy shares) in either company, if the need arises. And that is in addition to a desire to increase the companies' $2.25 billion dollar lines of credit.

What Could Happen
1. A government bailout of the GSEs would increase our national debt, increasing interest rates at a time when the economy can hardly afford it.
2. The Federal Reserve has repeatedly stated that the GSEs are in no danger of failing. But, what if they're wrong? Between the two of them, Fannie and Freddie guarantee almost half of all the $12 trillion U.S. mortgage debt.
3. Their ability to function is critical for mortgage prices.
4. However, if the GSE's collapse, the ability to obtain an affordable mortgage will be the least of anyone's concerns.

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