Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (15432)	8/6/1998 2:39:00 PM
From: CIMA	Respond to of 116791

================= CYRIUSS' NOTES: August 05/98 =================== ____________________________________________________________________ DR. DOOM MIDSUMMER REPORT Exclusive to Mr. Cyriuss THE GLOBAL RECESSION BEGINS Tuesday's steep plunge on Wall Street sent shivers through the global financial markets. The main complaint on the Street was a "lack of buyers." This is hardly specific to North America. Since the spring, Dr. Doom has warned you of a collapse in the global financial markets. All of the Asian economies are quickly headed into a severe recession; some are already stewing in one. Hong Kong's property and stock markets have chopped off $516 billion from that territory's asset value. The Hang Seng Index has fallen more than 30% from its 1998 peak. The Philippine stock exchange hit a 5-year low on Tuesday. Taiwan's stock exchange traded at its lowest level of two months, in Wednesday morning trading. South Korea was down another 3% Wednesday, after that nation experienced its largest monthly contraction of exports in more than 13 years, now down by nearly 14% over the past 12 months. Asia's currencies are under siege by the almight US dollar. The US dollar's ripples have turned into a tsunami. The Canadian dollar now faces the possibility of $1.60 to the USD by year end. Canadian bank stocks are in a free fall. It is a matter of time before Canadian interest rates are hiked, creating a new economic crisis for Canadians. Canada's venture capital exchange, the Vancouver Stock Exchange, sets daily historic lows nearly every day. This follows the decline of the Russell 2000 Index, a measure of US small cap stocks, which now trades lower than when this year began. Just a few months earlier, the UK was held up as an international success story. Its economy was said to be in a strong growth phase. Today, Britain's small companies, which are the main source of job creation in the UK economy, have stopped hiring new workers, because of a lack of confidence in their economy. The British economy is on the brink of a recession. UK manufacturing is in crisis, unemployment is rising and the housing market declines. Worry about US corporate growth does not seem to faze the American consumer. A recent report showed that US household savings fell to an all-time low of 0.6 percent, as a percentage of after-tax income. Americans, in the second quarter, spent almost all of their take-home pay. The Conference Board's Index of Leading Indicators reported a double-dip for May and June, the first string of monthly declines since 1995. Six of those leading indicators fell, including building permits, stock prices, consumer expectations, manufacturer's orders for consumer goods and the difference between ten-year bond yields and short-term interest rates. The August 11th report is expected to show a decline in productivity growth. The question, now, is not whether the US economy is headed for a downturn, but: Will this downturn become a recession? Commodity prices have been in a steady decline, nearly uniformly, over the past six months. Tuesday's equity trading showed that gold has not yet been ruled out as a safe haven from global mismanagement. As the global financial markets deteriorate further, investors will be forced to learn the basics of shortselling. Either that or their portfolios stand the possibility of a wipeout. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ =========================================================================== SERIOUS COPYWRITE(c)1996. CYRIUSS' NOTES, FAST FORWARD, THE GUIDING LIGHT, FANATICS AND FRAUDS! ARE TRADEMARKS OF STELIAN Finanz PLC Geneva. CYRIUSS' PUBLICATIONS -- BRINGING OPINIONATED COMMENTARIES, TO YOU. CYRIUSS' NOTES website, stockhouse.com ===========================================================================