Here's a simple 'fact' as to why we'll retest and break the recent lows...

B

ByLoSellHi

...despite the copious amounts of bullshit you're hearing from those wishing for a few more short covering rallies before they go long cash:

JOBS


I won't bother to post all the links revealing the massive loss of jobs JUST announced (never mind those that have yet to be announced) and haven't taken hold yet.

This will be a consumer-led contraction, baby - the most painful kind imaginable, and worse than that we experienced in 2002.

Shut out all the other B.S. you're hearing about. Inflation, deflation, Bernanke, Obama, McCain, interest rates, TIPS, consumer confidence, blah, blah, blah, blah....


Wall Street 'Pros' are going back to school to learn to tend bar...

Query: What drink is most popular during hard times?

Hoooo Waaa!!!!

http://www.bloomberg.com/apps/news?pid=20601109&sid=aAUbEhO7AJH0&refer=home
 
Option #1)

Job losses, declining corporate and personal tax revenues, increasing national debt and money supply.

Option #2)

Fiscal policy to prevent job losses and declining corporate and personal tax revenues. Maybe weak dollar policy to stimulate exports? We already had a taste of that. Increasing national debt and money supply.


There aren't many options, and none of them include deflationary signals (for US currency holders) when looked at from a composite point of view.
 
Option#3-

Let 10+ trillion of debt default, burn down the entire system of capitalism 2.0. All the hardware will remain (hard assets). Build and install Capitalism 3.0
 
Quote from nazzdack:

?......the meek shall inherit the Earth "scenario"? No way Hozay! :cool:
More...

Ever read For Whom the Bell Tolls? The meek, if beaten down into a corner long enough, will fight back with a vengeance!
 
Wow, no kidding. Unemployment is about to rise?

They sold the SP500 down 25% in October for no real reason I guess. Now you just wait until they learn the economy is in trouble! OH MY!
 
Quote from PAPA ROACH:

Option#3-

Let 10+ trillion of debt default, burn down the entire system of capitalism 2.0. All the hardware will remain (hard assets). Build and install Capitalism 3.0
More...

errmm.. Option 1 was implied to lead to Option 3...
 
Right. This shouldn't be necessary at "Elite"Trader, but here's a little investing/economics 101:

While certainly not a perfect gauge, the stock market tends to LEAD the economy, and typically hits tops and bottoms BEFORE economic indicators do.

The decline so far this year is one of the worst on record, and may have priced in much worse economic data than we've seen so far. Time will tell.


Quote from makloda:

Wow, no kidding. Unemployment is about to rise?

They sold the SP500 down 25% in October for no real reason I guess. Now you just wait until they learn the economy is in trouble! OH MY!
More...
 
Quote from PAPA ROACH:

Ever read For Whom the Bell Tolls?.......
More...


FWtBT? It's not something you read. It's something you listen too at high volume on your stereo. It's a song by Metallica. Kapeesh? :cool:
 
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