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DOW JONES October 2009 Rally breaks 10,000 points

Admin — Thu, 15 Oct 2009 09:48:26 +0000

The Dow Jones Index (14 October 2009) rose above 10,000 points for the first time since early October 2008, as US stocks powered higher. Investors cheered at the New York Stock Exchange, as the Dow Jones Industrial Average broke the psychological 10,000 point barrier, finally closing at 10,015.86 points. This is the first time the index has climbed above 10,000 points since early October 2008, when the stock market sank rapidly following the collapse of Lehman Brothers a few weeks earlier. See also the November Update:
DOW JONES Major High November 2009

The time points projected in the previous article DOW JONES Major High September 2009 have been passed, and in analysis terms, specifically Gann analysis, the Dow Jones would be described as being overbalanced in time – note the time points mentioned in that article, still all proved to be significant points. The target price level mentioned in that article has NOT been hit yet, 10,360 points, and this is the target level to break (by a significant amount) in order to prove that the bear market has ended.

Due mainly to fiscal stimulus, currency devaluation, and continued pump-priming by US (and worldwide) government, the current rally has over-extended in time, by a little. The crucial 50% retrace from Exreme High to Extreme Low (at 10,360 points) however, has not been breached, which means we are still technically witnessing a rally in a bear market. This will be noted as the biggest rally of the current bear market on the way down.

All the stimulus and fake value (currency) creation in the world, can not stop the inevitable unwinding of world markets – fuelled by rapacious greed and excessive debt – the accounts must eventually be balanced. The attempts by government to avert potential disaster, have only set us up for a bigger fall. The rebalancing will be more severe, and much longer in duration, quite likely leading us into Global Depression.

Significant time points to look for a reversal:
October 26-28, November 20, December 8-21

It is extremely unlikely that the Dow Jones will go above 10,360 points by a significant amount. If they pull off the miracle of the century and it does, then we will likely see a tremendous devaluation of currency followed by unbelievable inflation. Gold is the investment of the wise, and will continue to rise in value considerably into the future. If you have substantial money to invest and don’t want to see it eroded by currency devaluation (which is happening anyway), buy Gold now, and hold it.

Short Selling ban on Financials extended by ASIC

Admin — Thu, 05 Mar 2009 23:16:05 +0000

ASIC (Australian Securities and Investments Commission) has extended its ban on the short selling of financial stocks yet again, until May 31, despite advice from international regulators that it should only be used as a temporary measure, and may imbalance markets and reduce liquidity.

While the ban has been in place, financial stocks have suffered just as badly as other companies. ASIC first introduced the ban in the third week of September 2008 amid the storm in equity and credit markets following the failure of Lehman Brothers. ASIC said the decision to extend the ban for a third time was based on ongoing market volatility.

On Wednesday the Australian stock market S&P/ASX200 index hit a low of 3143 points, a level not seen since August 12 2003. The trading of some financial sector stocks, such as investment bank Macquarie Group Ltd, has been especially volatile, over the perception the companies are in funding distress. Shares in Macquarie Group have fallen dramatically in spite of the ban.

The Australian Bankers Association welcomed the retention of the ban.

Update note: Ban was lifted on 31 May 2009.

Lehman Brothers collapse. Sep. 15, 2008. Stock Market Reactions

Admin — Sun, 14 Sep 2008 15:37:03 +0000

Sep 15, 2008.
The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch — two pieces of news that profoundly alter the American financial landscape.

The fast-paced changes capped a roller-coaster Wall Street weekend and threatened to stir up U.S. financial markets already reeling from woes at other major financial firms and mortgage financing titans Fannie Mae and Freddie Mac.

“This crisis is clearly deeper than anybody had imagined only a short time ago,” Peter Stein, an associate editor at The Wall Street Journal in Asia, told CNN.

Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate — the value of its shares declined 94 percent this year.

The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators, who worked around the clock to come up with a solution to a still-unfolding financial crisis.

By the end of the weekend, the Federal Reserve had stepped in to try to calm the markets by announcing plans to loosen its lending restrictions on the banking industry.

A consortium of 10 leading domestic and foreign banks agreed to create a $70 billion fund for loans to troubled financial firms.

Source:

http://edition.cnn.com/2008/US/09/15/banks.bigchanges/index.html

The Federal Reserve is Engineering the Economic Collapse

Admin — Fri, 08 Aug 2008 15:35:58 +0000

To most Americans, the Federal Reserve is just another name on their dollar bill. They don’t know that this secretive private bank controls America’s entire economic system. The Federal Reserve is no more federal than Federal Express.

Created with no constitutional authority in 1913, the Fed prints money out of thin air and loans it to the U.S. treasury at interest. This can only lead to one outcome: debt. Currently, the Federal Reserve is printing billions of dollars to bail out Wall Street while destroying the middle class and the dollar. If our country wants a sound and transparent monetary system, we need to abolish the Federal Reserve and bring the power back to the American people.

VIDEO: Economic Collapse and the Federal Reserve

The Federal Reserve is Engineering the Economic Collapse

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