Monday, February 26, 2007 9:29:16 AM
Greenspan's latest comments ...
Greenspan's comment this morning: Conditions are slowly deteriorating and he thinks that the U.S. could slip into a recession later this year.
What's on the radar later this year? For one thing, 1 trillion dollars in sub-prime loans are going to have huge automatic rises in interest rates.
The current estimates is that it will cause a minimum of 20% to go into default.
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Let's take a look at the Dollar's action this morning.
Our Super Accelerator model shows that the Dollar shifted to a sell signal 8 days ago. The Super Accelerator is
trending down, and the S.T. Accelerator confirmed a down condition when it went below the dark blue horizontal
signal line.
A one year Point & Figure chart on the U.S. Dollar gives us a clearer view of what it happening.
On this chart, it is easier to see the Dollar's down trend and recent break to the downside. As the Dollar drops lower,
U.S. Equities become less attractive to foreign investors.
A recent Treasury Dept. Report showed that net inflows of foreign capital into long-term U.S. securities fell to only $15.6 billion in
December. It was the smallest monthly total in almost five years. On average in 2006, the U.S. needed more than $70 billion a
month in foreign funds to finance our current account deficit. Some are now worried about a new plunge in the Dollar.
http://www.stocktiming.com/Monday-DailyMarketUpdate.htm
Greenspan's comment this morning: Conditions are slowly deteriorating and he thinks that the U.S. could slip into a recession later this year.
What's on the radar later this year? For one thing, 1 trillion dollars in sub-prime loans are going to have huge automatic rises in interest rates.
The current estimates is that it will cause a minimum of 20% to go into default.
________________________________________________________________________________________________________
Let's take a look at the Dollar's action this morning.
Our Super Accelerator model shows that the Dollar shifted to a sell signal 8 days ago. The Super Accelerator is
trending down, and the S.T. Accelerator confirmed a down condition when it went below the dark blue horizontal
signal line.
A one year Point & Figure chart on the U.S. Dollar gives us a clearer view of what it happening.
On this chart, it is easier to see the Dollar's down trend and recent break to the downside. As the Dollar drops lower,
U.S. Equities become less attractive to foreign investors.
A recent Treasury Dept. Report showed that net inflows of foreign capital into long-term U.S. securities fell to only $15.6 billion in
December. It was the smallest monthly total in almost five years. On average in 2006, the U.S. needed more than $70 billion a
month in foreign funds to finance our current account deficit. Some are now worried about a new plunge in the Dollar.
http://www.stocktiming.com/Monday-DailyMarketUpdate.htm
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