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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (10269)	10/12/2008 11:41:13 AM
From: Rarebird	Read Replies (1) \| Respond to of 33421

<<Foreign BANKS need to soak up 260 billion and the world has been saved?>> Hi Bob. I'm no credit market specialist. However, I do know that the US commercial banks have their backs to the wall. They have to borrow to meet cash calls. Moreover, when a credit deflation takes hold, it cuts in under lending institutions and banks as the climbing losses on their books kills their capital. Then they all start going broke. As these lending institutions go broke, they tear ever bigger holes in the credit money system which deflates even further, in turn undercutting even more shaky lenders. This is what is happening now. I don't see these markets bottoming until 2011. This is a secular bear market with no quick fix at hand. However, short term, I expect a very strong bounce (after mid-October). The Dow can easily trade above 10,000 intraday right after the Presidential election.