Monday, June 13, 2011

Black Monday coming today?

From Arabianmoney.net:

Stock markets still look amazingly high for the increasingly gloomy economic outlook. But the long rally in US equities turned down six weeks ago and shows no signs of recovery. The Japanese earthquake disaster is impacting on Asian economic data.

There are big problems with no realistic solutions wherever you look. Even quantitative easing has lost its credibility with markets as it has so obviously failed to deliver the goods aside from delaying disaster.

QE follyLink

Why anybody thought printing money and going further into debt would make life better was not apparent to ArabianMoney a year ago. However, we underestimated the power of money printing to inflate financial markets, and that of course is the real reason for the total disconnect between stock market prices and economic reality.

If the prospect for the US is at best low growth for the next 10 years as one commentator suggested yesterday then stock prices have to be reset. Indeed, it does not have to be that dramatic, just properly discounting the high unemployment and falling house prices of today would be enough to require stocks to trade at a much lower level........

This Monday is also the date cited by Martin Armstrong in his 8.6-year cycle that matches with the crashes of 1987 and 1929 (click here). Is this a date with destiny?...........read in full

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