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


To: ggersh who wrote (29945)8/28/2010 7:54:45 PM
From: John  Read Replies (1) | Respond to of 71479
 
I have given this considerable thought today and read many varying thoughts from numerous people who are also studying the issue.

In my reading, I have found three commonalities that exist, as follows:

- It is widely acknowledged that the Federal Reserve has completely exhausted its supply of major ammunition already.

- It is widely acknowledged that their efforts have been ineffective.

- It is widely acknowledged that the only ammunition the Fed has left in their arsenal is "much weaker" than the measures they have already taken.

Since the major efforts of the Fed have failed to energize the economy and lift the U.S. equity markets, it is logical to conclude that their minor efforts will also be unsuccessful, the U.S. equity markets will continue to decline, and the recession/bear market will continue into the foreseeable future.

A further note of logic... Nothing that the Federal Reserve or the U.S. government has tried during the recession has addressed the underlying causes of the economic weaknesses.

All things considered, I think the U.S. equity markets will close out the year considerably lower from where they stand today, and I think 2011 will provide plenty of additional shorting opportunities.



To: ggersh who wrote (29945)8/29/2010 3:04:27 AM
From: maceng2  Read Replies (1) | Respond to of 71479
 
The outlook is uncomfortable.

reuters.com