Bear's Lair
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
Holding onto its "all is well" bias like a terrified cowboy on an enraged bull, Wall Street has managed to convince itself, and much of the world, that inflation is a non-issue.
The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades.
Some years ago Gordon Brown, then UK Minister of Finance, was asked at a dinner party why he had allowed the UK to sell 60% of the country's gold reserves from 1999 to 2002.
As our economic ship continues to spring leaks, the goldilocks crowd still clings to the false belief that the Fed can easily keep us afloat with a few more rate cuts.
What a terrific start to the year for gold! When you see a breakout to new highs on the 1st trading day of the year like this for a commodity it normally signals further strong gains as the year continues.
EDITOR NOTE: My Spanish needs work, since 'Tonterias' was misspelled in the title, which prompted a couple corrections from Latino readers. Disculpame!
Summary and Conclusions
Almost unanimously, the indicator charts are signalling the imminent emergence of a new ballgame.
The battle between bulls and bears seems to be centred around the two trendlines which have been drawn on the daily chart of the Dow Jones Industrial Index chart below (courtesy Bigcharts.com)
EDITOR NOTE: Fitch Ratings contacted me to make a clarification on last week's article, that they have not covered a debt rating on ACA Capital since 2004.
Season's greetings, wishing you all peace and profits in the New Year.
GLD - on sell signal.
Among those rational enough to perceive the looming economic downturn, a heated debate has arisen that centers on whether the slowdown will be accompanied by inflation or deflation.
The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects. Financial press reporting of the bond insurers is woefully inadequate.
Of course - to any Wall Street power broker, economist, or US policy maker, this headline means the equivalent of “Only Space Aliens Can Halt Teenage Pregnancies”. In other words, it’s a total non-sequitur to them.
We don’t normally look at fundamentals in these Gold Market updates, but it is worth stopping for a moment to consider the implications of the latest stroke of genius announced last week by the Fed in its desperate attempts to prev
From close up, there is no making sense of what is happening in the markets today. Certainly, in all the years of my involvement in and around the markets I have never seen such confusion at the coalface.
This week's announcement by the Fed that it will create a new mechanism to provide funding for credit challenged banks has been lauded by Wall Street as an innovative approach to solving the credit crisis.
Like a petulant child raging around because it got one candy when it expected two, the market threw a tantrum yesterday when it only got a quarter of a percent rate cut yesterday when it was hoping for more - but what good would it
An avalanche comes in 2008. Its wreckage will hit both the USEconomy and banking world.
Without question, the Bush administration's mortgage rescue plan will exacerbate, not alleviate, the problems in the housing market.
In the last month a tectonic shift has taken place among central bankers. To be sure, the USDollar is aided if foreign central banks end their march to raise official interest rates.
Have you ever noticed that two bullion coins which contain the exact same amount of the same precious metal, can sometimes sell for a different price?
We are currently in the early stages of the most serious financial crisis since 1929.
Below is an extract from a commentary originally posted at www.speculative-investor.com on 2nd December 2007.
The three month daily chart below is showing a sell signal on momentum oscillators, an overbought "slow" stochastic, and an OBV buy signal that looks like it wants to abort.
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Minting of gold in the U.S. stopped in 1933, during the Great Depression.
