The sky is falling - The sky is falling !
So where does these perma bears say the money will move to? There are good points to the blog post, until he goes from projecting the S&P, from the charts, to predicting the crash after correction.
GOLD, I guess is the only safe bet. Humm seems more like promotion, then even minded evaluation of the S&P in the future.
IMO the flaw to the prediction is commodities will fall in value with a crash. All except precious metals. And the increase in commodity speculation world wide is whats causing the world slow down. A TAX on main street, which reduces spending.
Note I posted world, not USA or S&P only. The USA can't change world ecomomics alone. The QE's quoted in the blog post, created the profits seen in the united states of corporations only. They kept the depression at bay. The FED already has said no QE3. If the corps can't continue their great profit margins without more free money. They will have to make do with good profit margins. Government will have to find another way to sure up the US economy.
As I see it, a fall in commodity prices and speculation causing the rise, should balance out the worlds slow down problems.
Humm the release of oil reserves just slapped energy speculators in the face!!! They are going to think twice about buying up and holding oil high, if the worlds governments might do this to them again. Plus the pull back correction, in the markets world wide, is lowering other commodity increases also.
I agree the correction could be and was seen in the charts. I posted a heads up in APRIL. But IMO this corection will not fall off the ends of the world later 2011. But bounce as main streets around the world have more money to spend, on lower basic commodities. Caused by the correction. The corporations of the world are not being effected as negatively as the main streets, by all this. Smaller profit margins have always been expected when QE 2 was removed.
IMO all this doom and gloom is just another rich guys way to try to pry more financial aid from governments, to keep their gravy train on track. It's time for them to help main street, not themselves. Thats what the FED told me, in the recent Bernanke FED speak.
Theres my perma bull blog back at ya!!!
AI
