Somebody please tell me just what in the hell is this clown talking about.
Posted on 01/22/2010 10:22:41 AM PST by blam
Signs Of Global Stock Market Crash And Financial Meltdown
Stock-Markets / Financial Crash
Jan 22, 2010 - 02:34 AM
By: Mac Slavo
There’s a lot of buzz hitting the contrarian financial news circles around the web regarding recent market weakness and the possibility for the end of the rally which began in March of 2009.
Many contrarian investors have been waiting for the crash that is inevitably to follow the largest US market rally in modern history, and this may be it.
We caution our readers, however, that over the last year there have been various false signals, and rather than seeing a crash in the Summer of 2009 or Fall of 2009, stock markets continued to push up, despite abysmal economic fundamentals.
Is it the real thing this time?
Bert Dohmen, publisher of the Wellington Letter, says “This is the time for the bears to make money. Sell short any rally attempts.”
Dohmen, who suggested in December 2009 that early January would see a continued rise in stocks, anticipated a down-turn in late January. In his most recent letter, dispatched to subscribers January 21, 2010, Dohmen says that we can forget about the theory that “hyperinflation is right around the corner,” and that deflation and debt implosion is the major problem:
“Market analysts expect 2010 to see a rise in corporate earnings and sales. They are probably correct. But that will be met by further market weakness. You see, that’s what the stock rise of the prior 10 months was all about. Stocks are already priced for the best news that could possibly develop this year. When all the fund managers are positioned for this “good news,” there is no further money to go in. And that’s when the selling gets serious.
The recent news out of China is just what we have been warning about: tighter lending and monetary policies! Economic growth in the last quarter was a blistering 10.7% (officially), which obviously creates worries about inflation. Tighter money dampens speculative fever. And all the sins of the speculative bubble of 2009 will surface.
As a result, the US dollar is now in demand and is soaring. That kills the most important reasons for buying commodities. The dollar rally will be a lot stronger than even the few dollar bulls imagine. There will be a massive rush to close out short positions.”
In our earlier post this morning, Chinese Fed Shuts Down Lending, Capital Flees to Dollar, we suggested that the pullback in Chinese bank lending and stimulus, may force capital speculating in Asian stocks back to safety in the US Dollar. Dohmen seems to agree with this assessment.
[snip]
“I inherited this mess.”
I heard that apricot jam futures are going through the roof!
I’m going to mortgage my house and buy truckloads on margin.
I’ve been convinced that all our financial decisions right now should be based on what your portfolio or debt status would look like facing hyper inflation which will hit. Not a matter of if, just when and I think the when will be within the next 24 months.
Sure wish I knew what all this means...
>> The dollar rally will be a lot stronger than even the few dollar bulls imagine.
You’re in good shape, my FRiend. You’ve got silver, and you’ve got dollars. Silver dollars! :-)
I agree with the article. The dollar carry is going to snap back like an elastic band. The market is going to crash.
Somebody please tell me just what in the hell is this clown talking about.
Like Rush Limbaugh said today: “How much wealth can one man destroy?”
Two things Obama has done so far
1.Financial Meltdown
2.Increased gun sales
Hmmm. That sounds an awful lot like "What could possibly happen?"
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