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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (80553)	7/16/2008 9:26:12 AM
From: saveslivesbyday	Respond to of 94695

Re: "The stock crash of 2008-2010" Just as most professional money managers and traders probably don't read bearish boards such as those on SI, I doubt many are looking at charts from 1929-1933 as several of us are

To: carranza2 who wrote (80553)	7/16/2008 11:34:19 AM
From: Real Man	Respond to of 94695

I've seen it. It is different this time. The former picture shows why the DOW dropped in 1929-1932. The latter picture shows why the DOW rose in 2000-2008, while losing 77% relative to gold. <G> Rising stock market is a national economic policy in this country. The cost of this policy is the second picture. The living standard in America was cut in half since 2000, but the stock market speculators (and housing speculators) were handsomely rewarded and are keeping their gains... to a degree, of course.

To: carranza2 who wrote (80553)	7/16/2008 10:32:10 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

The economic crisis is here to stay for some time, IMHO. However, the exact path is difficult to determine, because one piece of paper (stocks) is priced in another piece of paper (dollar). The question is then in relativity - which piece of paper falls faster. If it's the dollar that goes down much faster, well, you can get the best performing stock market (Zimbabwe) and gas that costs a few trillion dollars per gallon <G>. In my view all paper has been falling since 2000. However, the government and the Fed made sure stocks priced in dollars don't fall - until now. Things look bearish, but it is unrealistic to expect a "crash" for stocks priced in dollars like one in 1929. They could go down some more though. The dollar already lost a bundle and could go to zero a few years down the road, since what the FED is doing amounts to MISMANAGING THE CURRENCY.