Posts Tagged ‘market crash’

Video about the dollar coming this year from effects of PISS POOR FINANCIAL MANAGEMENT by the Federal Reserve, Wall Street, and Federal Government

As Republicans and Democrats continue their battle of dick measuring here is a detailed Q & A of how you are going to be shafted by Federal Times.com

What a shutdown would mean for you

With no agreement yet in Congress on how to fund agencies after the continuing resolution expires March 4, the threat of a government shutdown appears likely. The Federal Times staff researched your questions about how pay, annuities, benefits, facilities, technology and contract work would be handled during a shutdown. Here’s what we found out:

Q: What happens when the shutdown begins?

A: You’ll probably have to go into your office briefly Monday, March 7 (or earlier if you work on the weekend) to receive your instructions. If you’re an “excepted” employee, you’ll keep working. If not, go home and wait for further instructions.

Pay and benefits

Read rest of article at link

Federal Times research by Sarah Chacko, Nicole Blake Johnson, STEPHEN LOSEY, Andy Medici and Sean Reilly

http://www.federaltimes.com/article/20110228/AGENCY01/102280301/1009/ACQUISITION

James Turk on King World News begins to speak about the dollar crash that is not being talked about. The dollar crash that is inevitable. He goes into areas that highlight some current events and their effect on an already very weak dollar. I predict anything 72 or below on the DXY it will crash. Turk uses the limit of 77 on the DXY. Either way, we will know soon enough.

Turk – Dollar Ready to Collapse, Silver Squeeze to Continue

 

With gold higher and silver up almost $1.30, King World News today interviewed James Turk out of Spain.  Turk had this rather frightening warning about the dollar, “The dollar right now is hanging on the precipice.  If we break below 77 on the dollar index, look out below.  I don’t think people really appreciate how scary the dollar chart is here, or how ominous the implications really are.  There’s no predicting how far the dollar could plunge if confidence breaks.”

Turk continues:

 “You’ve got civil war breaking out in North Africa and you have rebellions happening in the Middle-East.  In this kind of geopolitical situation, in the past the US dollar would always rally, but this time it can’t even bounce.  You know Eric the other side of this coin is that if the dollar falls off the edge of a cliff, precious metals are going to skyrocket.” 

 When asked about silver Turk stated, “During the most illiquid time of the trading day, somebody decided to take out all of the stops in silver.  If you were not following during business hours in the Pacific Ocean you missed it.  I woke up this morning and looked at the chart and couldn’t believe what happened while I was sleeping.

 The important point Eric is that no technical damage was done and in fact the situation has become even more bullish because that little smack down overnight took out all of the weak hands. 

With this month’s important options expiry now behind us, I’m looking for higher prices next week.  Even though the March/May spread has flattened a little, the backwardation continues to grow to 2015 and has ballooned further to $1.16.  The short squeeze is continuing to develop.  The shorts are trapped and whether the trap springs this week or in a month or two I don’t know, but we are getting very close.”

 When asked about gold specifically Turk remarked, “While silver did get hit in overnight trading, gold hardly moved and then snapped right back.  Remember I said last time that the gold chart is beginning to look really strong, that is what the event last night displayed. 

 Gold is incredibly resilient and looks coiled for an explosive move higher.  We started our initial probe of the all-time high this week closing in on $1,430 before backing off.  Look for another probe of that $1,430 level very soon.  It won’t be long Eric before we take out that all-time high, particularly if the dollar falls off the edge of a cliff.”

 It is worth noting that in his King World News interview today Art Cashin also warned about the US Dollar being on the verge of serious trouble.  KWN readers globally should keep a close eye on the dollar next week to see if it begins to break down.  If that happens it will increase bids in both the gold and silver markets.

 Eric King

KingWorldNews.com

I predicted in ’06 the market come to a screaming halt soon, it happened in ’07.  Since then I have said we have not left this depression, we are simply experiencing a cycle within a cycle. This is still a depression folks and now this, what we call in the dating world “rebound” is coming to an end. I told my friend who trades a ton of stocks, “Mike, get into cash. The market is way oversold and it is going to crash (this was at 10,900 DJIA area). It is taunting people right now to throw money in, but it is going through a bubble”. It has since moved upward of 12,300, everyone screaming at the top of their lungs “We are fine, we are back in business” as markets in easterns countries have crashed the country into bankruptcy like Bangladesh.

Marketwatch.com has now published a post that strengthens what I’ve been repeatedly saying.

Market Crash 2011: It will hit by Christmas

Commentary: The S&P 500 is worth only 910. Get out or lose big

By Paul B. Farrell, MarketWatch

SAN LUIS OBISPO, Calif. (MarketWatch) — Politicians lie. Bankers lie. Yes, they’re liars. But they’re not bad, it’s in their genes, inherited. Their brains are wired that way, warn scientists. Like addicts, they can’t help themselves. They want to sell stuff, get rich.

We want to believe they’re telling us the truth. Silly, huh? Both trapped in this eternal “dance of death” controlled by programs hidden deep in our brains, telling us what to do, telling us to ignore facts to the contrary — till it’s too late, till a new crisis crushes all of us.

Dow ends at 2 1/2-year highJoe Bel Bruno explains why stocks climbed to 2 1/2-year highs and extended their winning streak to a third consecutive week.

Psychology offers us a powerful lesson: Our collective brain is destined to trigger a crash before Christmas 2011. Why? We’re gullible, keep searching for a truth-teller in a world of liars. And they’re so clever, we let them manipulate us into acting against our best interests.

In fact, behavioral science tells us that bankers and politicians are lying to us 93% of the time. It’s 13 times more likely Wall Street is telling you a lie than the truth. That’s why they win. Why we lose. Because our brains are preprogrammed to cooperate in their con game. Yes, we believe most of their lies.

One of America’s leading behavioral finance gurus, University of Chicago Prof. Richard Thaler, explains: “Think of the human brain as a personal computer with a very slow processor and a memory system that is small and unreliable.” Thaler even admits: “The PC I carry between my ears has more disk failures than I care to think about.” Easy to manipulate.

Eternal love story: Your brain’s in love with Wall Street’s brain

Thaler’s a quant, speaks mostly in cryptic algorithmics. So if you really want to know how Wall Street’s con game works on you, Barry Ritholtz, the financial genius behind “Bailout Nation,” recently summarized it in the Washington Post: “Humans make all the same mistakes, over and over again. It’s how we are wired, the net result of evolution. That flight-or-fight response might have helped your ancestors deal with hungry saber-toothed tigers and territorial Cro Magnons, but it drives investors to make costly emotional decisions.”

Humans have something “akin to brain damage,” says Ritholtz. “To neurophysiologists, who research cognitive functions, the emotionally driven appear to suffer from cognitive deficits that mimic certain types of brain injuries. … Anyone with an intense emotional interest in a subject loses the ability to observe it objectively: You selectively perceive events. You ignore data and facts that disagree with your main philosophy. Even your memory works to fool you, as you selectively retain what you believe in, and subtly mask any memories that might conflict.”

Worse, there’s no cure.

Your brain needs to believe lies; Wall Street loves telling lies

Examples: USA Today headline: “Average Bull is 3.8 years: We’re not at 2 yet.” More upside. Wall Street loves it. The Wall Street Journal: “Stock recovery in high gear … S&P500 now speeding toward its next landmark,” double its March 2009 bottom.

Other lies: Inflation and rate rises won’t push China and America over the edge into a new bear recession. That one’s real popular in Wall Street’s echo chamber. Wall Street also cheers every time cable pundits and journalists repeat their favorite statistic: That stocks rally in the third year of a presidency, often more than 20%. Yes, Wall Street loves those 93% lies.

Biggest lie? Wharton’s perennial bull, Jeremy Siegel, of “Stocks for the Long Run” fame, recently told a TD Ameritrade Institutional Conference, “There’s nothing but upside to come …the next several years are going to be good for stocks.”

Yes, one of Wall Street’s favorite co-conspirators is hypnotizing thousands of our best money managers and advisers into believing the lie that this bull market will roar indefinitely. Worse, they’ll use that message to sell naive investors on buying whatever junk Wall Street is selling.

Get the picture? A little conspiracy begins in your head, a conspiracy between your gullible brain and Wall Street’s con men selling hype, hoopla and happy-talk. Listen and you’ll lose.

http://www.marketwatch.com/story/market-crash-2011-it-will-hit-by-christmas-2011-02-22