zermux

10 Reasons Why We Still Haven't Hit Bottom

Additionally:

(1) Commercial Real Estate is about to collapse. Watch out for GGP and Simon Property next week.

(2) House prices are still going down and will continue

(3) GM and Chrysler are teetering on Bankruptcy and very few people are buying a new car.

(4) FDIC are about to run out of cash. Most of the big banks ARE insolvent (off balance sheets exposure in the trillions) and one of them will eventually go down.

(5) Quantitative Easing is a final act of the desperate. If the Fed has to resort to QE then we are really in trouble.

(6) Tax Hikes are in the future

(7) etc, etc

It is not different this time - its just that we are in a 1929 - 1938 like depression, rather than a recession.

Ashamed of AIG

Does anyone know of a legal way to refuse to pay taxes, on grounds of goverment incompetence.

Let AIG Go Bankrupt, Not America

A moment of clarity.

If only the Fed and treasury had 10% of the intellectual capital of Rogers.

Yesterday's Market Festivities Summarized

Massive Debt Contraction leads to almost zero money supply volatility, which equals Deflation.

Fed has been trying to battle this since 2001, although they are too scared to tell us what is going on.

The standard approach of giving away free money is no longer working, as scared people do not spend - they save.

In a Deflationary depression all assets go down in Value (Stocks, Gold Oil) the only safe investments are very short term treasuries.

Wall Street's New Math

Prechter did not say it was the final wave down. He was pretty specific in that he thought this bear market was likely to last for a few more years. His call to close out his futures short call, initiated in July 2007, was due to the fact that 800 points is a nice profit and we could be heading for some volatility. Additionally, for those of us who are a bit closer to what is going on, he is starting to fear about the stability of the financial system and its good to get the money from your counterparty whilst they are still solvent.

For those people who, unlike you, understand elliot wave theory: We are in wave 5 (down) of wave 1 (down) of wave c (down). After we hit the next bottom - maybe around 6400 on the dow - we should have a nice bounce, in wave 2 (up) of wave c (down). After that we hit a mega wave 3 (down) of wave C - this will be really nasty.

>>"On Friday, super bear Robert Prechter of Elliot Wave theory was on CNBC saying that he believed we were in the fifth and final wave down of this market decline. While I know nothing about Elliot Wave theory, I agree with him that this is the final wave down but for a different reason."