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mmerlinn · 10-29-2008, 06:00 AM

Well, the crash I was expecting did not happen as I expected.

Looking at the charts, we did make a yearly low on Monday, 27 October 2008, but it was a long drawn out measured low. Why? All I can think of is that maybe the billions given to the banks was used to prop up the market. No idea for sure.

On the 24th when I got up EVERYTHING overnight pointed to a MAJOR down day that day. The major indices were lock limit down, 60 for the S&P, 550 for the Dow, and I don't remember how much for the NASDAQ. And overnight, markets around the world were down down down.

Based on the last time there was such an occurance (Black Monday 1987), I was sure the markets were opening lower and going down down down as I predicted 3 months ago. Instead, the S&P and Dow open UP while the NASDAQ opened 100 points down. By the end of the day things were pretty much unchanged from Thursday. Monday saw a big sell off right on the close, making yearly lows. I had expected it to follow thru Tuesday. Nope. Opened up Tuesday and halfway through the day ROCKETED up, some 90 points on S&P and almost 900 points on the Dow.

Now the question is, "Why?" It is beginning to look like the Federal Government has decided that it is better to print more money and ARTIFICIALLY prop up the markets. If that is true, then I have to assume that the expected 2000 point drop in the Dow extrapolates into a 25% INFLATION prop. If so, when we look back in history minus the inflation we might STILL see that we had a crash on Monday. Only time will tell.

So, if the Fed did that, what can we expect? One of the biggest bull markets in history. However, if adjusted for the expected inflation, it will be one of the biggest bear markets in history.

How much inflation? Don't know, but based on the 1929 market slide, I think it will require a MINIMUM of 300% PER YEAR, or 25% per MONTH. Bottom line, literal WHEELBARROWS of money for a loaf of bread.

Think it can't happen? Look at this link: (http://www.boncherry.com/blog/2008/1...he-real-crisis). This is the HERE and NOW in Zimbabwe. If what I suspect is true about the crash being inflated out of existence, THEN WHAT YOU SEE THERE IS COMING TO AMERICA. Such a scenario WILL destroy what is left of our economy - No business will be able to keep up with HOURLY changes in prices. And those that don't will go bankrupt.

So, watch the financial markets. If the current bear markets suddenly turn bullish and then seem to go up with no top in sight, dig out your wheelbarrow because you ARE going to NEED it.

10-29-2008, 06:00 AM	#127
mmerlinn Avalon Senior Member Join Date: Oct 2008 Posts: 26	Re: Oct. 24: Stock Market Crash Well, the crash I was expecting did not happen as I expected. Looking at the charts, we did make a yearly low on Monday, 27 October 2008, but it was a long drawn out measured low. Why? All I can think of is that maybe the billions given to the banks was used to prop up the market. No idea for sure. On the 24th when I got up EVERYTHING overnight pointed to a MAJOR down day that day. The major indices were lock limit down, 60 for the S&P, 550 for the Dow, and I don't remember how much for the NASDAQ. And overnight, markets around the world were down down down. Based on the last time there was such an occurance (Black Monday 1987), I was sure the markets were opening lower and going down down down as I predicted 3 months ago. Instead, the S&P and Dow open UP while the NASDAQ opened 100 points down. By the end of the day things were pretty much unchanged from Thursday. Monday saw a big sell off right on the close, making yearly lows. I had expected it to follow thru Tuesday. Nope. Opened up Tuesday and halfway through the day ROCKETED up, some 90 points on S&P and almost 900 points on the Dow. Now the question is, "Why?" It is beginning to look like the Federal Government has decided that it is better to print more money and ARTIFICIALLY prop up the markets. If that is true, then I have to assume that the expected 2000 point drop in the Dow extrapolates into a 25% INFLATION prop. If so, when we look back in history minus the inflation we might STILL see that we had a crash on Monday. Only time will tell. So, if the Fed did that, what can we expect? One of the biggest bull markets in history. However, if adjusted for the expected inflation, it will be one of the biggest bear markets in history. How much inflation? Don't know, but based on the 1929 market slide, I think it will require a MINIMUM of 300% PER YEAR, or 25% per MONTH. Bottom line, literal WHEELBARROWS of money for a loaf of bread. Think it can't happen? Look at this link: (http://www.boncherry.com/blog/2008/1...he-real-crisis). This is the HERE and NOW in Zimbabwe. If what I suspect is true about the crash being inflated out of existence, THEN WHAT YOU SEE THERE IS COMING TO AMERICA. Such a scenario WILL destroy what is left of our economy - No business will be able to keep up with HOURLY changes in prices. And those that don't will go bankrupt. So, watch the financial markets. If the current bear markets suddenly turn bullish and then seem to go up with no top in sight, dig out your wheelbarrow because you ARE going to NEED it.