Global Correction

[flying]

uh oh, here it comes, looks like we may have a death cross, IF the blue line crosses below the red line and STAYS (when the short term MA moves below the longer term MA), you were warned, even greater pain is coming and yes that

Uh Oh dont let the streams cross !!!

[LaoPo]

We watched all the bail outs and supports by all of the governments but so far there is not much of a progress to be noticed as far as I can see since the banks who were rescued are sitting on the rescue money and the much needed credit by private- and company clients is almost impossible to get. The banks are stricter than ever and every single bankwoman/man is afraid to lose his/her job and sits back, instructed by their bosses, who, in turn are also scared to death to lose their job.

................. business owners as well as the middle to large companies are in desperate need of credit from the banks. But the banks either don't have that money or sitting on it.

LaoPo

While this may seem simplistic, as we see central banks aggressively slashing interest rates

and we know from past history that this didn't have much effect in Japan in 1990's it seems we are hurtling

towards deflation ? Isn't it part of the problem that if they

lend out money now that we're in this vicious spiral it will end up on assets that one year from now

could be much lower in value? What incentive is there for any banker to do that ?

So I cannot see how we can get out of this?

Oh, deflation is certainly a possibility if things don't change soon.

I'm afraid that the rate-cuts aren't helping so far and a zero rate* is quite possible.

I don't think it's a role for the bankers right now (because they don't move their @sses right now) but the various governments to kick those bluddy bankers in the @ss and tell them to start lending to their clients before it's too late...

It's already past 12.00 o'clock.

``It's the race to zero,'' said Stewart Robertson, an economist at Aviva Investors Ltd. in London, which manages about $230 billion. ``There's no obstacle to more rate cuts.'

* http://www.bloomberg.com/apps/news?pid=206...&refer=home

Note:

I speak to a lot of people in business all over the world and every single one of them is worried.....very worried.

Recently my wife returned from China and she has lots of friends working in all kinds of businesses. One of them got rich with her husband, exporting garden chairs and sofas to the US...orders dried up...finished..over.

Another one is specialized in the travel industry with Japan.....quiet...quiet...no orders...no tickets; playing games on the computer all day because the phone is dead...

Tens of thousands of migrant workers in China are leaving Guangzhou by bus and train to go home on a DAILY basis because the factories they worked for are closing or already closed.

Shenzhen, next to Guangzhou, has a (amongst others) workforce of 1.3 million workers from Sichuan, the province which lost many people due to the earthquake; it won't be long before a large part will have to go home...no work.

The economical world wide situation is becoming worse and worse, very fast, and I'm surprised lots of people, even on Thaivisa, are not even aware of the upcoming disaster.

These are some signs from the East but watch what's going on in the West ! One doesn't have to have the brain of Einstein to see an unfolding drama coming up with giants going bust...going under.

The big 3 from Detroit..talking to Nancy Pelosi, begging for $ 50 Billion (they already got $ 25 Billion !) to save them.... http://www.bloomberg.com/apps/news?pid=206...&refer=home

Click on the link above and you see the CEO's of those companies...laughing; but I don't think there's much to laugh about right now.

If you realize that the market Cap from GM is a meager $ 2.7 Billion one should question...what the heck....

But, there are 260,000 employees working there....so what do you do ?

edit:

adding that Ford has a market cap of some $ 4,5 Billion and posted a third-quarter operating loss of $2.98 billion. The company said it used up $7.7 billion in cash and would cut more salaried jobs.

Ford has 246,000 employees.

Anyone a cookie with his coffee ?

LaoPo

Edited November 7, 2008 by LaoPo

[flying]

The economical world wide situation is becoming worse and worse, very fast, and I'm surprised lots of people, even on Thaivisa, are not even aware of the upcoming disaster.

LaoPo

I am not surprised that folks on TV or in TL are unaware. If I were there I would probably be less up on it too

Of course here in the states we are preparing for the worse hopefully it will not come to that but being prepared is good ( at least as best we can )

Good Luck where ever you reside

Edited November 7, 2008 by flying

[lannarebirth]

Anyhow, commodity hoarders. Here's a point to ponder. On this monthly chart of the CRB, you'll note that July's candle is what's known as a "bearish engulfing" candle. I offer no opinion on it as it's not a trade I'm interested in, save for my XAU puts.

And now we see what the "bearish engulfing" candle foretold:

[LaoPo]

Anyhow, commodity hoarders. Here's a point to ponder. On this monthly chart of the CRB, you'll note that July's candle is what's known as a "bearish engulfing" candle. I offer no opinion on it as it's not a trade I'm interested in, save for my XAU puts.

And now we see what the "bearish engulfing" candle foretold:

Master LRB..please enlighten the uneducated amongst us....me in the lead as dumbest of them all

What chart index is this and what does it say ?

LaoPo

[lannarebirth]

Anyhow, commodity hoarders. Here's a point to ponder. On this monthly chart of the CRB, you'll note that July's candle is what's known as a "bearish engulfing" candle. I offer no opinion on it as it's not a trade I'm interested in, save for my XAU puts.

And now we see what the "bearish engulfing" candle foretold:

Master LRB..please enlighten the uneducated amongst us....me in the lead as dumbest of them all

What chart index is this and what does it say ?

LaoPo

Commodities. The first red candle foretold what was to follow. So did Mahendra (to the day) as you may recall.

[Bizz]

Deflation can be good or bad depending upon whether it is created by rising productivity or monetary manipulation. However, deflation is not likely to be around as either a blessing or a curse, because politicians and government officials understand that inflation is to their benefit.

[flying]

I was wondering about the 700 Billion bail out.

Does anyone here know if the Fed physically printed money or was there just an exchange of book keeping?

I am probably describing poorly but I just wondered.

Was the money physically added to the world supply ( printed ) or not?

Or was it just a book keeping input in banks etc. to cancel out the leveraged (non physical?) dollars?

Just curious does anyone know for sure?

Edited November 8, 2008 by flying

[teatree]

I was wondering about the 700 Billion bail out.

Does anyone here know if the Fed physically printed money or was there just an exchange of book keeping?

I am probably describing poorly but I just wondered.

Was the money physically added to the world supply ( printed ) or not?

Or was it just a book keeping input in banks etc. to cancel out the leveraged (non physical?) dollars?

Just curious does anyone know for sure?

It was transfered electronically to banks such as Goldman Sachs and either kept or given out as bonuses to the top executives. None of the money is being released into the general economy. The public has been screwed again.

[glyph]

"I was wondering about the 700 Billion bail out. Does anyone here know if the Fed physically printed money..."

Incredible. Let me ask you a question: when the US Airforce buys a $2 billion sleath bomber, do you seriously believe that the Feds print $2 billion in $100 dollar bills, and then sends it to the manufacturer?

Edited November 8, 2008 by glyph

[lannarebirth]

I was wondering about the 700 Billion bail out.

Does anyone here know if the Fed physically printed money or was there just an exchange of book keeping?

I am probably describing poorly but I just wondered.

Was the money physically added to the world supply ( printed ) or not?

Or was it just a book keeping input in banks etc. to cancel out the leveraged (non physical?) dollars?

Just curious does anyone know for sure?

It was transfered electronically to banks such as Goldman Sachs and either kept or given out as bonuses to the top executives. None of the money is being released into the general economy. The public has been screwed again.

Hence why gun sales shot up over 300% this week. Personally, I wish they'd ask questions first, rather than pick up a gun later. Idiots.

[flying]

I was asking because perhaps naively I wondered....

Sorry if it is too basic for TV member or perhaps I misunderstand your wit?

Especially the gun remark???? Where does that come from?

The Fed use to report via the M3 every year since 1959 till 2006

But then they decided to hide that info & stopped publishing it.

Why?

I have read that the M3 currency is approx 14 trillion I have also read that since 2000

the FED increased the currency supply by 112%

Edited November 8, 2008 by flying

[teatree]

The vast majority of money, around 95%, is electronic.

[ace]

It was transfered electronically to banks such as Goldman Sachs and either kept or given out as bonuses to the top executives. None of the money is being released into the general economy. The public has been screwed again.

I doubt that is entirely accurate, just IMO. There has been support in the equity markets, which does not look just like value investors to me. I mean 2.8% up (DJIA) on horrible employment figures and the imminent prospect of major bankruptcy - increased job losses - etc, etc.

[lannarebirth]

I was asking because perhaps naively I wondered....

Sorry if it is too basic for TV member or perhaps I misunderstand your wit?

Especially the gun remark???? Where does that come from?

The Fed use to report via the M3 every year since 1959 till 2006

But then they decided to hide that info & stopped publishing it.

Why?

I have read that the M3 currency is approx 14 trillion I have also read that since 2000

the FED increased the currency supply by 112%

Sorry. I meant to say, I think there's a growing awareness amongst taxpayers that they've just been royally fuc_ked. The money that's been appropriated is seemingly being squandered, while new appropriations are being prepared. I don't know why gun sales are up so significantly, but it wasn't hard for me to put the two events together in my mind. I wish these people had said, stop, wait, give us the details, instead of rubber stamping the theft and then getting angry later.

Edited November 8, 2008 by lannarebirth

[teatree]

I was asking because perhaps naively I wondered....

Sorry if it is too basic for TV member or perhaps I misunderstand your wit?

Especially the gun remark???? Where does that come from?

The Fed use to report via the M3 every year since 1959 till 2006

But then they decided to hide that info & stopped publishing it.

Why?

I have read that the M3 currency is approx 14 trillion I have also read that since 2000

the FED increased the currency supply by 112%

Sorry. I meant to say, I think there's a growing awareness amongst taxpayers that they've just been royally fuc_ked. The money that's been appropriated is seemingly being squandered, while new appropriations are being prepared. I don't know why gun sales are up so significantly, but it wasn't hard for me to put the two events together in my mind. I wish these people had said, stop, wait, give us the details, instead of rubber stamping the theft and then getting angry later.

I think a large part of the rush to buy guns is that Obama is seen as a gun grabber.

[lannarebirth]

I was asking because perhaps naively I wondered....

Sorry if it is too basic for TV member or perhaps I misunderstand your wit?

Especially the gun remark???? Where does that come from?

The Fed use to report via the M3 every year since 1959 till 2006

But then they decided to hide that info & stopped publishing it.

Why?

I have read that the M3 currency is approx 14 trillion I have also read that since 2000

the FED increased the currency supply by 112%

Sorry. I meant to say, I think there's a growing awareness amongst taxpayers that they've just been royally fuc_ked. The money that's been appropriated is seemingly being squandered, while new appropriations are being prepared. I don't know why gun sales are up so significantly, but it wasn't hard for me to put the two events together in my mind. I wish these people had said, stop, wait, give us the details, instead of rubber stamping the theft and then getting angry later.

I think a large part of the rush to buy guns is that Obama is seen as a gun grabber.

I hope you're right, but if that's the case his timing couldn't be worse. The specious "right to bear arms" argument is ostensibly to protect the citiizenry from a corrupt, tyrannical government. The time to make a play for the guns was when that corrupt, tyrannical government was blowing the internet bubble and subsequent echo bubbles. Everyone was on soma and might have gone along with the idea. Now that the corrupt tyrannical government has been unmasked, it is a pretty poor time to be asking for the keys to the gun cabinet. Better stock up on popcorn, the show's about to begin.

[lannarebirth]

Blowback:

Sales of ships for scrap being 'suffocated'

By Robert Wright in London

Published: October 27 2008 02:00 | Last updated: October 27 2008 02:00

A key safety valve for regulating the world's supply of ships has stopped working in recent weeks, after credit and other problems brought the sale of ships for scrapping to a near halt.

The problems are centred in India, the heart of the world ship-demolition industry, and have prevented owners from selling the thousands of ageing vessels worldwide that are no longer worth keeping afloat, following a collapse in the rates earned by many vessel types.

There had been hopes that large-scale scrapping might limit the effects of oversupply in key shipping markets, brought about by the manic ordering of key ship types in recent years - particularly dry bulk carriers and container ships.

"The Indian market is basically closed at the moment," one industry participant said.

The central problem, according to people involved, is that many shipbreakers' banks are no longer willing to issue letters of credit - documents assuring the seller's bank that the agreed price for the vessel will be paid.

http://www.ft.com/cms/s/0/725abf56-a3c7-11...?nclick_check=1

lower shipping rates, lead to lower shipping rates:

http://www.investmenttools.com/futures/bdi...c_dry_index.htm

[VegasVic]

I was wondering about the 700 Billion bail out.

Does anyone here know if the Fed physically printed money or was there just an exchange of book keeping?

I am probably describing poorly but I just wondered.

Was the money physically added to the world supply ( printed ) or not?

Or was it just a book keeping input in banks etc. to cancel out the leveraged (non physical?) dollars?

Just curious does anyone know for sure?

I know what you are getting at flying, and the answer is no! The U.S. government just issued more debt instuments. I know that you are buying silver (which is certainly better than gold if you feel the need to own physical metals) and you want to hear the popular misconception that the U.S. government printing presses are running 24-7 printing Dollars, they are not! The hyper inflation that the gold bugs are hoping for will not occur. Inflation will rear its ugly head at some point down the line 12-18 months from now, but the world will be in a commodity bear market throughout 2009 and deflation and disinflation will have a vice grip on economies throughout the world.

[flying]

I was asking because perhaps naively I wondered....

Sorry if it is too basic for TV member or perhaps I misunderstand your wit?

Especially the gun remark???? Where does that come from?

The Fed use to report via the M3 every year since 1959 till 2006

But then they decided to hide that info & stopped publishing it.

Why?

I have read that the M3 currency is approx 14 trillion I have also read that since 2000

the FED increased the currency supply by 112%

Sorry. I meant to say, I think there's a growing awareness amongst taxpayers that they've just been royally fuc_ked. The money that's been appropriated is seemingly being squandered, while new appropriations are being prepared. I don't know why gun sales are up so significantly, but it wasn't hard for me to put the two events together in my mind. I wish these people had said, stop, wait, give us the details, instead of rubber stamping the theft and then getting angry later.

I think a large part of the rush to buy guns is that Obama is seen as a gun grabber.

I hope you're right, but if that's the case his timing couldn't be worse. The specious "right to bear arms" argument is ostensibly to protect the citiizenry from a corrupt, tyrannical government. The time to make a play for the guns was when that corrupt, tyrannical government was blowing the internet bubble and subsequent echo bubbles. Everyone was on soma and might have gone along with the idea. Now that the corrupt tyrannical government has been unmasked, it is a pretty poor time to be asking for the keys to the gun cabinet. Better stock up on popcorn, the show's about to begin.

I see what you mean by guns now.

Yes the other poster is correct. I shot competitively for years both high power rifles & IPSIC.

So I still get all kinds of *mail*

The gun rights community is in a small panic. ( I am not )

This is the same as it was with Clinton. So the price gougers are taking advantage.

These supposed friends of the gun owners are actually fueling the fire by raising prices.

Nothing will come of this IMHO.

Things will settle back down again. It would be easier to cure cancer or the common cold than to de-arm America. It is not going to happen.

Like Charleton Heston said

[flying]

I know what you are getting at flying, and the answer is no! The U.S. government just issued more debt instuments. I know that you are buying silver (which is certainly better than gold if you feel the need to own physical metals) and you want to hear the popular misconception that the U.S. government printing presses are running 24-7 printing Dollars, they are not! The hyper inflation that the gold bugs are hoping for will not occur. Inflation will rear its ugly head at some point down the line 12-18 months from now, but the world will be in a commodity bear market throughout 2009 and deflation and disinflation will have a vice grip on economies throughout the world.

Thanks Vic ( & teatree)

Yes that is what I wondered. Not just because of PM investing but also I was reading a book by Michael Maloney & wondered about different things.

As for inflation yes I was wondering how this *printing * of dollars would or would not affect us. I wondered if it was physical or not & if that in fact would have more or less of an impact being physical or not. Like I have said before if nothing else this crisis has gotten me to look & learn more about these things than ever before. I am sure I am not alone.

Thanks

Edited November 8, 2008 by flying

[AlexLah]

Now we have all heard that those big bailed out banks are just sitting on their money or use it to take over other banks, they for sure do not just sit on the money, I guess.

Perhaps some of the "experts" here can explain if I am correct in what I am thinking.

Read the following links first:

http://www.federalreserve.gov/newsevents/p...y/20081006a.htm

http://www.federalreserve.gov/newsevents/p...y/20081105a.htm

So to put it down a bit more simple.

The bank loans to the FED against 1%

Then the bank borrows from the FED against 0.75% or is it 0.25%?

If so, is that not a bit dodgy?

[bingobongo]

i guess feng shui, fortune tellers, corruption, and egg roll are not enough to keep the "asian miracle" going........... this did not work in Japan or the US and it won't work in China

China announces $586 billion stimulus plan

http://biz.yahoo.com/ap/081109/as_china_st...us_package.html

Edited November 9, 2008 by bingobongo

[LaoPo]

i guess feng shui, fortune tellers, corruption, and egg roll are not enough to keep the "asian miracle" going........... this did not work in Japan or the US and it won't work in China

China announces $586 billion stimulus plan

http://biz.yahoo.com/ap/081109/as_china_st...us_package.html

China has to act, one way or another. The country has to boost domestic spending and create new jobs and infrastructure projects, lower taxes for starters, house buyers etc. (which they're doing already on a large scale) since export and growth are declining (of course, inherent to the economic situation in the US/EU and rest of the world).

Every single country in the world has to take steps and fight for it's own sake and benefit, the rest of the world comes later.

First feed your own people....to prevent unrest.

The latter was done by the various western governments (read: feeding their banks with money first -who are SITTING on it now - ) instead of letting the banks collapse.

ALL important economists tell the same, LET THE BANKS FALL.

Basically I agree if a bank falls. In this case however the governments had no option than to rescue their large banks simply because TOO MANY banks are in problems.

WHY ? because the various governments fear anarchy and uproar in the streets of their countries if those banks would have fallen.

Have you ever seen mobs with hundreds of thousands of people...ANGRY..because they lost their savings ?

A scary scenario I tell you.

China is facing the same problem and may God forbid the masses go into the streets.....

LaoPo

[pkrv]

I was wondering about the 700 Billion bail out.

Does anyone here know if the Fed physically printed money or was there just an exchange of book keeping?

I am probably describing poorly but I just wondered.

Was the money physically added to the world supply ( printed ) or not?

Or was it just a book keeping input in banks etc. to cancel out the leveraged (non physical?) dollars?

Just curious does anyone know for sure?

Hi flying - I'm not sure if you have seen this link

http://video.google.com/videoplay?docid=-9050474362583451279

It explains how money is generated - It was onpassed to me by another poster and I have asked others on this forum to flame it - They have not.

If this is true then an aging society coupled with its requirements to pay off debts is not good news. I would appreciate your thoughts.

[jcon]

hey lanna,

please make sure to remind me when another 'bearish engulfing candle' (what an awesome name btw, the imagery!) comes up...

i'd like to see what new strike prices are coming out in the future....

[LaoPo]

In New York, General Motors dropped almost 30% (!) on Monday morning after opening of the stock market. GM was downgraded by important brokers such as Barclays and Deutsche Bank.

GM dropped to around $ 3.02, coming from a high of $ 42.00 in October 2007; still trading.

GM lost 45% of it's value in just 5 trading days.

AIG/American International Group Inc. got a $150 billion government rescue package, almost doubling the initial bailout of less than two months ago as the insurer burns through cash at a record rate.

Stockprice shot up a staggering 25%....but not forgetting stock is still down -95% from a year ago.

FANNIE MAE the largest provider of funding for U.S. residential mortgages, on Monday said it lost a record $29 billion in the third quarter

For the rest all is well...

LaoPo

[flying]

Hi flying - I'm not sure if you have seen this link

http://video.google.com/videoplay?docid=-9050474362583451279

It explains how money is generated - It was onpassed to me by another poster and I have asked others on this forum to flame it - They have not.

If this is true then an aging society coupled with its requirements to pay off debts is not good news. I would appreciate your thoughts.

Thanks I had that up for awhile & meant to watch it. I think it may be the same info that was in Zietgiest & the Addendum but will watch it too. Thanks!

[flying]

I wonder if this would be interesting to anyone?

http://www.contrahour.com/contrahour/files...inArmstrong.pdf

This was written from prison I guess?

I am just reading it & thought it was interesting.

[lannarebirth]

I wonder if this would be interesting to anyone?

http://www.contrahour.com/contrahour/files...inArmstrong.pdf

This was written from prison I guess?

I am just reading it & thought it was interesting.

Martin Armstrong is brilliant. I've been reading him for years. Just finished reading that one yesterday. I don't like to see him get too much exposure though. Fortunately, this one was a wee bit flakier than usual.

Edited November 10, 2008 by lannarebirth