Archive - Aug 2011 - Blog entry

It is a bear market.  Is that already priced in?

I warned that the rally of the last week was nothing more than a snapback move from oversold conditions.

Where is the bottom?

[WARNING: THIS IS A FOOD AND BEVERAGE RESTRICTED POST] 

The Fed has reopened FX swap lines to Switzerland. The Fed ONLY does this when things are on RED ALERT. It’s now only a matter of time before a big bank goes down and takes the European banking system with it. Forget al the headlines, the ECB and regulators over there have lost control.

Yo, It's rough out there...

The news media will eventually figure out the truth — that stocks got pulped yesterday simply because they are in a bear market. The Mother of All Bears, quite possibly.  The Dow finished the day down 419 points after trading more than a hundred points lower than that intraday.  The selloff was attributed to the usual suspects: “fears” over Europe’s shaky financial condition, and America’s apparent relapse into recession. Although both concerns have been with us in spades for more than a little while, they seem, suddenly, to have become overwhelming and unmanageable now that the world’s stock markets are imploding. 

Relevant News

If you have ever wondered how we can fight back against the financial insanity that Central Bankers are attempting to impose upon us, implement these three steps, and we’ll be off to a solid start.

The WSJ article last night was the kiss of death for all markets today. Was that deliberate? I think so.

But they said ...

Have a nice vacation you moron! Seriously, does this constitutional half wit know how to do anything besides ride around on a Canadian bus, blow hot air and duff the back nine? His 26% approval is a public gesture of uncalled generosity. He has the country stuck in a giant economic  sand trap which he thinks he can manage with a cracked Keynesian fairway wood...

We’re fast approaching a time in which neither the Fed nor the ECB will be able to hold the market together. Indeed, we got our first taste of what it will be like at the end of July when the S&P 500 wiped out nine months’ worth of gains in about two weeks’ time:

We’re now officially in the Second Round of the Great Crisis. And if you thought the first Round of the Financial Crisis was bad, wait until you see the next one. Indeed, I fully expect that what’s coming is going to be 2008 on STEROIDS. I’m talking about market crashes, civil unrest, riots, bank holidays and more.

After accurately predicting the Pan-European Sovereign Debt Crisis, which sparked our prediction of the French Bank Run which appears to be causing a panic induced market run as I type this, we've found the big US bank most likely to suffer contagion  from the fallout... As I have said in the past, Lehman was just the warm up routine, you ain't seen nothing yet!