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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (96843)	12/10/2007 1:27:29 PM
From: patron_anejo_por_favor	Respond to of 306849

>>Sovereign Wealth Funds to the Rescue? Global banks may turn to Asian and Middle Eastern Sovereign Wealth Funds with plenty of capital<< Why does this remind me of that speech Ned Beatty gave to Peter Finch in Network about the Arabs taking billions outta the U.S., and now they have to put it back? Man, that movie was scarily prescient in so many ways.....

To: Smiling Bob who wrote (96843)	12/10/2007 1:28:06 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 306849

When did you switch to the darkside? Actually big market rallies are now very doubtful unless volatility contracts soon. The great profit margin contraction has begun with the financials, just like it did in 1997/1998. This time profit margins are 30% higher than those elevated levels. My analyst did a study showing profits are currently 70% higher than as would otherwise be predicted by GDP growth. That is insane. The profits chart looks a lot like those housing price charts where you see the line go verticial after 2003 compared to trend. The only question was catalyst, which seemed like it would never come. If the current credit crapout isn't a catalyst, then I have no idea what is. If the Fed can re-engineer a debt bubble comeback like it did in 1998-2000, we have may have a 2 year stay of execution. But this time the losses in the banking sector are real unlike in 1998 when they were perceived. This could be nasty.

To: Smiling Bob who wrote (96843)	12/10/2007 2:00:13 PM
From: bentway	Respond to of 306849

"With China and Mideast needing places to park cash, US mkts are the most appealing on the face of it. " I agree with you, but it won't be based on the real value of the securities or the strength of our economy, it will be based on the fact that they'll probably be worth more than the gigantic piles of paper these people own. I'm in GLD and SLV, which ALSO went up nicely today. I think if I was a filthy rich Chinaman or Arab, I'd be buying some gold and silver too with those depreciating clownbucks. All these foreign billions inflating our stock market into a new bubble means at some future point, they'll be a new correction. What would cause that, and of course, WHEN?