This week, as the financial sector began to give way under the unbearable weight of bad mortgage debt, the Federal Reserve stepped in to save the day. At least that’s what it says in the script.
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
If I have learned one thing in the 40 odd years that I have been watching the markets, it is this: Parabolic rises culminate in crashes. It’s a biological phenomenon.
The USDollar DX index has hit my 72 target on this latest leg of its breakdown. The news is all wretched. Iran, Nigeria, and even tiny Vietnam are rebelling against the crippled buck.
About a week ago we called a short-term top in gold and silver, and although we got one, the subsequent reaction has turned out to be very muted.
Robert Johnson- CROSSROADS
In the update last weekend we were looking for a correction back across the trend channel shown on the 1-year chart below, probably to the $910 area.
On February 12 th 2008, this analyst took a decision that prevarication was no longer an option. A judgement call was needed and the judgement call was made, as follows:
Prior to my last appearance on CNBC in October 2007, I had made more than 50 appearances on the network over the prior two years.
Despite some volatile daily moves on the chart this past week, it looks like a sideways trend, even possibly a topping action. Let’s see.
Both the Economy and Stock Markets are unfolding, almost as if on cue to the play I have been writing during the last year or so.
The title should really be “Psychology of 1000-20-100” to give respect to the major signpost price targets. The $1000 gold target is within reach. The $20 silver target has been breached.
There is presently much debate over whether the gold price has further upside.
The IMF as the linchpin of the fixed exchange rate regime
Jeff Frieden is professor at Harvard focusing his research on the politics of international monetary and financial relations. He has been quoted as saying that, if once more on a gold standard,
One week ago, my forecast did not come to pass for a euro currency selloff, and for a pound sterling selloff. Even the Aussie Dollar forecast of a selloff failed.
Barron Young Smith is a financial journalist whose piece What Would Happen If We Adopted the Gold Standard? is appended below.
Having neither the will nor the means to confront our major economic challenges, Washington is instead hanging its hopes on words alone.
How about $10,000? or $1,000? Or even $100,000?
Like a whirlwind, the crisis triggered by the housing crisis and mortgage debacle has extended to almost every phase of the landscape in US economic and financial life.
Unfortunately one of the few things still made in America is inflation. In fact, it now ranks as our greatest export.
The monthly chart below (courtesy bigcharts.com) is showing that the Nasdaq needs to bounce up from here to avoid breaking down.
EDITOR NOTE: Strange times in Costa Rica. No article last week. They have a strange custom here, closing the bus door in the face of gringos. This time, my reaction was to catch it with my left hand.
Like frightened rabbits scurrying back to the apparent safety of their hutches, investors rattled by the sub-prime shocks and the associated tremors in stockmarkets have been fleeing to the perceived safety
Despite many conflicting signals from many different quarters, this analyst believes we have entered a Primary Bear Market for Industrial Equities.