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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (21569)	7/28/2009 12:38:41 PM
From: Real Man	Respond to of 71426

This is a longer term trajectory. In the short term the markets are ruled by Goldman Sachs. I see technical signs of possible weakness in these markets before they soar again. The weakness may go as low as 840 for SP500, or even 720, forming a W bottom in stead of a V bottom. Then, of course, if Goldman does not want that, it ain't gonna happen. There is also risk of a currency crisis, which is not a bullish event for the stock market. But things will get expensive then too, nevertheless, and might even disappear from the stores. <G>

To: Pogeu Mahone who wrote (21569)	7/28/2009 1:20:15 PM
From: Real Man	Read Replies (3) \| Respond to of 71426

Banana rallies are very difficult to play. They are like money farts, with bubbles inflating in some places with little to no correspondence to fundamentals, while elsewhere things lag. Maybe to Goldman's desires. The market becomes the market of "first receivers" (of the money from printing press) and "non-receivers". So, things these first receivers buy go up in price. Copper prices stayed put in Weimar times according to Jesse's charts, or collapsed in real terms, due to the economy completely disintegrating. Stocks went up a bundle and provided decent protection, again, in spite of the fact that the economy was virtually absent. Rent/housing costs were zero. Food soared in real terms so high, most families spent all their income on food, which means there was hunger. As a line of thought, I am still looking at financials from the long side as this inflation trade develops again. Obviously, they are the "first receivers". If the current trends continue, there will be no economy left but them. Thus hyperinflation.