EUARTE

Ten Reasons for an Imminent Stock Market Crash

One should remember that Greenspan, in effect, retracted that opinion. His political masters did not like that. Greenspan was always more interested in a pension than his country. Shame!


On Sep 24 10:53 AM Nick36 wrote:

> An imminent stock market crash can stay imminent for a long time
> before the stock market actually crashes.
>
> In the late 1990s, some stock market commentators were predicting
> and imminent stock market crash for a couple of years before it actually
> happened. Even Alan Greenspan coined the phrase 'Irrational Exuberance'
> to discourage investors from driving up stock prices too much. But
> at that time, his words had little effect on the market.
>
> Perhaps this time it will take a lot less than a couple of years
> for the imminent stock market crash to happen. But it still might
> take a few months.
>
> The stock market has basically priced in a V-shaped recovery in the
> earnings of companies. And quite possibly this pricing in was done
> by the big investment banks as a way of intervening in the stock
> market using free money from the Fed and possibly with the blessing
> of the Fed.
> ftalphaville.ft.com/bl.../
>
>
> This V-shaped recovery in the earnings of companies is unlikely to
> happen in the near future due to rising unemployment and poor consumer
> spending. And sooner or later disappointed investors might sell.
>
>
> But if it's the Fed in cahoots with the investment banks who has
> driven up the stock market so much. Then a stock market crash might
> be engineered too in order to help the government sell US Treasury
> bonds some time in the future.
>
> The US government is planning to sell an awful lot of bonds. And
> sooner or later a stock market crash might be just what the doctor
> has ordered to help the government sell its bonds.
>
> October 1 is the start of the new fiscal year for the US government.
> And some time after that a stock market crash might be needed to
> help the government sell its bonds.

U.S. Quantitative Easing Has Just Begun

China now has a massive credit bubble. Watch out for any stats that China puts out. They are purely political. All bubbles burst! Watch out world.


On Sep 23 11:18 AM conceptwizard wrote:

> If Bernanke and Obama were truly concerned about preserving jobs,
> they would have required banks loaded with taxpayer bail-out loot
> to lend these funds to consumers and business. China did so, ordering
> its banks to increase credit. And boy, did they, expanding credit
> by an eye-popping 30%, rocketing China's economy out of recession
> and into double-digit growth.
>
> But the Obama Administration has gone the opposite way. The White
> House letter to the G-20 calls for slowly increasing bank reserves,
> and that can only cause a tight credit market to tighten further.
>
>
> It's not that the White House completely ignores job losses. The
> US letter suggests, "The G-20 should commit to ...income support
> for the unemployed." You can imagine the Europeans, who already have
> generous unemployment benefits—most without time limits—turning purple
> over that one. America's stingy unemployment compensation extension
> under the Stimulus Plan is already beginning to expire with no live
> proposal to continue aid for the jobless victims of this recession.

Good News: Dollar Headed Down

A cheaper debassed currency makes buying that countries products well cheap.

The United States has one big problem here. It does not make much to export. It has put it's citizens out of work and exported it's factory work.

It makes trade protection a must to restart industry in this country. We have started with tires and it will progress.

This Recovery Is Not Sustainable

The fading stimulus bill? Effective? What planet is this from? The Stimulus Law has had very little effect and will have little effect. It was a pork Law and has failed.

As for unemployment we know, even from good times, that the government(s) have always under reported the numbers. This has been and is political. The real numbers are not know but I think an educated guess is around 12%. The government's formula counts those they want and then leaves off those it wants to avoid.

When Will the Fed Raise Interest Rates?

The column has a very theological sound. Only through suffering can we better our economy. Putting off the suffering only increases it. Hopefully we will only suffer Purgatory although some will rightfully suffer hell.

Why We're Not Buying This Market

I should be on the Fed board. I have not a clue!

The Vicious Circle of a Falling Dollar

We will not....will not recover ever if we do not have a reliable source of energy. We do not drill and we do not have a reliable home source of energy. Game over!

The Inflation Threat Is Real

Low interest rates got us into this monetary mess. We are to believe that printing presses and 0% rates will get us out. I am having a meltdown.

Opposing Views of Economic Imperatives

"Managed sensibly" by whom? Certainly not our government! It is already corrupt under The One. Giving money where it politically wants, firing executives (deserved or not) and destroying peoples lives (closing successful car dearlerships). Corruption is always there as is greed. But when a government is corrupt it is all over.

Regulation? Most of the needed regulation laws are in place. Enforcement is what is needed. The Bush administration was responsible for non-enforcement. The Congress did not use it's oversight abilities since they were in on the take. No morality there. That and a returning of the banks to where they were assigned by law after the depression. We can thank the Clinton Administration for pushing for the banks to get into non-traditional areas. We saw what happened!

Japan tried to manage "sensibly" it's economy. It got a ten year recession.

I will take enlightened self-interest over "managed sensibly" any day.

The new world order is delusional and the height of socialist "arrongance".

Don't Be Fooled by Inflation

There is only one way we can survive our lousy dollar and that is spending less abroad. I do not mean buy American as such but produce American. The product oil and other energy products/solutions. Obama's distaste for drilling will be his fatal error in helping America now and the future. His delusional belief in a qucik green answer to our future is just that..delusional. Green can be and should be a part of the future but we can not just throw out an obvious energy source. It is delusional and therefore childish. In energy he appears so with it and the future but he really is so 60's. Retro Man.

The Worst Case Scenario (Someone Has to Say It)

Most of this is possible but most unlikely. However, one has been on my mind for some time. Devaluation of the dollar seems the only way out for our mess. I mean an honest if unwanted devaluation. tha would be done by printing new dollars as above. Believe me people who own our paper would be happy to get something. The world currencies would adjust and things go on. Perhaps we should rethink currency as a product? We could somehow manage to stop large buying and selling of currencies. I wonder?

Where Is the _flation?

The fact is that inflation is our future. However, since the entire Western world will cause and have the same problem it will be mighty interesting.

New York Mellon's Chief Currency Strategist on the Dollar and Commodities in 2009

What bull!! The United States has done nothing to make it's currency strong. Any strength is pure luck based on another's bad luck. No policy here.

Federal Reserve Exports Inflation

Over and over and over the Federal Reserve shows it has lost control. It knows nothing. It doesn't understand what is happening. The Federal Government is coasting till the next administration. Be afraid.

How Much Inflation Will We Have to Endure?

In plain English the Federal Reserve, the Congress and The Preaident do not know what they are doing. When they do something it hot air or too little too late.