Thursday, July 17, 2008
Hold on to your hats
Second largest bank failure in US history has been duly noted, with a repeat bailout like Bear Stearns, paying down debts still the better plan, PPT supplies another miracle rally for the Dow, but we fear they only delay the inevitable, Fannie and Freddie collateral now Toxic Waste, liquidity drains now wide open, watch for the downward spiral. What you are witnessing is the acceleration of a complete systemic breakdown of the US and world financial systems and economies. All world stock markets are now in Bear Market Territory. The FTSE 100 finally caved in, and now all major stock exchanges are off by more than 20% from their highs. This is just the beginning of woes. Like the dollar, stocks worldwide will continue their downward spirals, abbreviated by dead cat bounces.