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This is the first time ever that the S&P 500 has ever rallied 60% in six months. The Dow reached 10,000, when it should not have exceeded 8,500. That shows you the distortion and manipulation going on and points up the now blatant activities of the President’s “Working Group on Financial Markets,” which, of course, operates in secret. As a tribute to this phony rally we have lost 2.5 million jobs over its tenure, when two million are normally created. Are there no professionals out there that get it? They cannot all be that dumb, and they are not that dumb. They are engaging in a conspiracy of silence. They want to be thought well by their peers at the club. They do not want to be ostracized in the Wall Street click. We know we were there for 28 years, of course, always on the outside looking in, permanently known as goldie. If you want to see where the US stock market is eventually going take a look at Japan from 1992 to today. 70% losses and still unable to get out of its own way with an economy still in depression. Incidentally, if the US market copies Japan, which we believe it will, we could easily fall to 3,800 to 4,200 on the Dow and we’ll be very lucky if it holds there. Others whose opinion we respect are looking for 2,800. Wall Street is pricing into the market earnings not only for 2010 but 2011 as well, which is very dangerous in such an environment. We are still in the worst credit crisis since the 1930s.
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Iceland's economic crisis knocked out 96% of the value in its stock market from the high... can anyone say Dow at 670? How about S&P 500 at 63?
ReplyDeleteI love this site! I only found it less than 2 weeks ago.
ReplyDeleteI had my eyes opened because of H1N1 back in May, and I am pissed.
I stopped crying (99% of the time) late at nite about 2 months ago and now I am pissed. I have alot of research to go in self sustaining and preparing for anything!
Thank you Economic Analyst!
4.55 Do not thank anyone for you being awoken up , thank him for the information
ReplyDeleteThis article is total BS! Gold at $6700...yeah right. Gold will be lucky to get above $1200/oz. Whenever I see numbers like this I think the top is in. If I owned gold, which I thank God I never got involved in because it has performed so poorly the past 6 months, I would be selling it today. Bob Chapman will go from international forecaster to Bag Holder as he sits alone in his storage facility looking at all his shiny metal.
ReplyDeleteJust wait until the Fed starts increasing rates late next year, the dollar will whipsaw into one of the strongest currencies on planet Earth. Gold will be weak and the entire cycle will repeat itself, as countries who scrambled to get away from the dollar (like Turkey), come running back and begging to hold greenbacks.
This cycle has repeated itself many many times in the past century. Perhaps I am just a student of writing things down and reading them.
6:31........I think we all hope, maybe secretly, you are correct. If so, then I just sell the shiney stuff and life goes on, but if you are wrong, then even though with gold and more importantly silver, will have it better since they will have protection of wealth. They won't be rich, but will still afford many things the real bagholders can't have
ReplyDeleteWhat a good post. I do think we will see another 1929 crash. Only this time, it will be very ugly. Americans in those days, did not turn to crime. I am not so sure it will be the same today.
ReplyDeleteI have always subscribed to the idea that this kind of cycle takes about 3 generations. IE, the one that lives during the depression, the one that are the children of that generation and the third, that is removed enough to repeated the same mistakes all over again...Greed and belief that you can repeat history without getting the same results.
ReplyDeleteThis time we have BHO taking advantage of the troubles like we had FDR, before. I do not think that we can stop the Leftist this time!!!!!!!