Friday, October 26, 2007
10/26 The Downward Trend Is Unstoppable by J. R. Nyquist
A must read, check it out at ; Financial Sense Uncommon News and Views for the Wise Invester. financialsense.com
Saturday, October 20, 2007
John Galt 10-20-07
10.20.07What is the meaning of today’s markets and geopolitical events?Posted in Old Posts at 1:04 am by Administrator
I’m going to leave this rant short and sweet as it’s been a long three week period for moi and wow, what a nightmare. The economy in Florida is basically in total collapse. Not only do I sell now, but I get to make collection calls and they are increasing in number and dollar amount. When you start seeing the subcontractors bugging out, that’s a sign we are heading into Phase 2 of our typical Florida housing crash. That means we have 24-36 months to go. So what did the events of the markets today, and this week for that matter, plus the geopolitical storm mean?
First, the stock markets are lagging indicators right now. The refusal to put the garbage on their books out for everyone to see and let the markets decide means that the game of hide and seek must continue. The execs have to keep the illusion up through Thanksgiving to get their Christmas bonuses, but I don’t see it happening. There is a very good chance that next week, we could witness a major negative market event. I fear that the total collapse of the ABX and other commercial paper markets will cause another freeze up in the exchanges and will destroy the international credit system with us shipping the garbage out and the rest of the world repatriating dollars back in exchange. Now they are not participating and this weeks TIC report indicates to me that without the hedgies (Pirates of the Caribbean) and the U.K. (who has to participate because their banking system is married to ours) we would have witnessed a massive monetization of our debt. Instead, we are witnessing a back door acquisition by the Fed, using their laundry facilities in the Caymans. A lot will depend on the idiocy to be uttered at the end of the G7 meetings and if they call for a new currency structure (my guess) is uttered, then Sunday night could be an Asian tsunami of dollar liquidation. Keep in mind that when I say dollar liquidation, I’m not just talking the currency folks; I mean ALL dollar denominated assets including our equities and treasury garbage. The number to watch is 76.85 on the USD Index and 1485 on the S&P 500 cash index. If we violate those with volume on Monday, then we could see a rather dark day, that day. There is no chance the ChiComs or Fed can bail this puppy out and there may not be a desire to and instead scare everyone by painting the swan.
Next, the wild cards of Israel, Turkey, Russia, China and Pakistan will play prominently. We are well within our window of concern about moves being made against us or our allies. Any violence or change in dramatic strategic positions by the big boys, then not only could we see our financial markets touched off, we could see a play by our enemies inside the U.S. and overseas.
Pay attention, alert and prepared. Please.
I’m going to leave this rant short and sweet as it’s been a long three week period for moi and wow, what a nightmare. The economy in Florida is basically in total collapse. Not only do I sell now, but I get to make collection calls and they are increasing in number and dollar amount. When you start seeing the subcontractors bugging out, that’s a sign we are heading into Phase 2 of our typical Florida housing crash. That means we have 24-36 months to go. So what did the events of the markets today, and this week for that matter, plus the geopolitical storm mean?
First, the stock markets are lagging indicators right now. The refusal to put the garbage on their books out for everyone to see and let the markets decide means that the game of hide and seek must continue. The execs have to keep the illusion up through Thanksgiving to get their Christmas bonuses, but I don’t see it happening. There is a very good chance that next week, we could witness a major negative market event. I fear that the total collapse of the ABX and other commercial paper markets will cause another freeze up in the exchanges and will destroy the international credit system with us shipping the garbage out and the rest of the world repatriating dollars back in exchange. Now they are not participating and this weeks TIC report indicates to me that without the hedgies (Pirates of the Caribbean) and the U.K. (who has to participate because their banking system is married to ours) we would have witnessed a massive monetization of our debt. Instead, we are witnessing a back door acquisition by the Fed, using their laundry facilities in the Caymans. A lot will depend on the idiocy to be uttered at the end of the G7 meetings and if they call for a new currency structure (my guess) is uttered, then Sunday night could be an Asian tsunami of dollar liquidation. Keep in mind that when I say dollar liquidation, I’m not just talking the currency folks; I mean ALL dollar denominated assets including our equities and treasury garbage. The number to watch is 76.85 on the USD Index and 1485 on the S&P 500 cash index. If we violate those with volume on Monday, then we could see a rather dark day, that day. There is no chance the ChiComs or Fed can bail this puppy out and there may not be a desire to and instead scare everyone by painting the swan.
Next, the wild cards of Israel, Turkey, Russia, China and Pakistan will play prominently. We are well within our window of concern about moves being made against us or our allies. Any violence or change in dramatic strategic positions by the big boys, then not only could we see our financial markets touched off, we could see a play by our enemies inside the U.S. and overseas.
Pay attention, alert and prepared. Please.
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