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Da Bear Report
February is over. Stocks, gold, and silver escape the month by the skin of their teeth. March is here. March madness to follow? This week we saw some things go BOOM! But they BOOM!ed in the wrong direction. can the Mother Of All BOOM!'s (MOAB) be far behind? You can probably bet on it with derivatives. Everyone else is doing it. BOOM! is Orwellian for BUST!
Let's see how the broker's are doing. It seems everyone is going subprime these days. From today's headlines:
"Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley, which earned a record $24.5 billion in 2006, suddenly have become so speculative that their own traders are valuing the three biggest securities firms as barely more creditworthy than junk bonds."
Thanks for that info Dr. J. Great post, a real slam dunk. Very Happy
Novastar, a smaller money-shuffle player, imploded recently. For all those who wanted to know, Novastar was February's Subway Sandwich's Subprime Mortgage Broker of the month. Let them eat subprime loans?
Well, someone has to. Probably taxpayers.
On the subject of real estate, jeffolie has given some great posts and observations on it. Maybe the real estate shills are right, stocks are ephemeral, dot coms are computer fantasy, but real estate isn't going anywhere. They are right on that. Real estate isn't going anywhere. Just sittin'. Shocked
My book entitled "Da Bear's Guide to Making Money in Real Estate" will be out soon. Sneak peak: Chapter One: Don't buy real estate. Wait. Don't buy. Continue to wait. Wash, rinse repeat. Well, that's all i have so far! Laughing
Maybe chapter two will be chapter one but written in espanol. Perhaps a chapter three in Mandarin. The three most important words in real estate are "Liquidation, liquidation, liquidation."
Gold and silver were down this week. And silver is down more than gold, suggesting deflationary signs are here. A few days ago I posted in a thread to take profits in silver. I will stick with that. Why is deflation showing up? Other People just called, they want their Money back. Hedge funds sold stocks because stocks were down, and gold going down caused the hedge funds to liquidate gold. Ponzi called, he wants his Scheme back.
Da Bear on cash. Do you have any? Does anyone? Cash, or more appropriately Federal Reserve Notes (which are neither federal, nor reserves, nor notes) is what everyone needs, no one has and is going up in value. Why is it going up? Because we are running out of OPM. To borrow a line, OPM is the religion of the people. And now it is gone. OPM HATES America!
Cash may be trash, but so is Paris Hilton and she's loaded and can buy whatever she wants. And that's HOT!
How many FRN's are in circulation? Well, $2,500 in circulation per capita with a whopping 300 bucks in five's. The enemy (the Fed) of your enemy (the State) is your friend (FRN). Something tells me we will finish bank runs in record time. Roger Banister and Carl Lewis got nuthin' on US.
Stocks everywhere are going down and should go down for a while. EWI thinks very low. So do others. My (da bear) opinion is that stocks will bottom when the mass investor class gets out. If according to Prechter we are in c wave down, the Dow could end up looking like a Nasdaq chart, or a tulip chart for that matter. China and Shanghai got the stock bug, now they are paying for it. This new Chinese bear should set up the Mother Of All Buying Opportunities (MO ABO) in a few years.
The Dow's rise from last July's lows went in a steady uptrend to new highs (classic signs of a fifth wave) on decreasing volume. Tuesday's selloff was accompanied by HUGE volume and a sharply steep change in price (classic signs of a trend change, and a wave one in elliott wave terms). VIX (volatility) also exploded to the upside. Tuesday and Wednesday were record volume days for the S&P 500, so the bear is back and for real. On Tuesday 2 stocks were up with 498 down. This is one big bear!
da bear
February is over. Stocks, gold, and silver escape the month by the skin of their teeth. March is here. March madness to follow? This week we saw some things go BOOM! But they BOOM!ed in the wrong direction. can the Mother Of All BOOM!'s (MOAB) be far behind? You can probably bet on it with derivatives. Everyone else is doing it. BOOM! is Orwellian for BUST!
Let's see how the broker's are doing. It seems everyone is going subprime these days. From today's headlines:
"Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley, which earned a record $24.5 billion in 2006, suddenly have become so speculative that their own traders are valuing the three biggest securities firms as barely more creditworthy than junk bonds."
Thanks for that info Dr. J. Great post, a real slam dunk. Very Happy
Novastar, a smaller money-shuffle player, imploded recently. For all those who wanted to know, Novastar was February's Subway Sandwich's Subprime Mortgage Broker of the month. Let them eat subprime loans?
Well, someone has to. Probably taxpayers.
On the subject of real estate, jeffolie has given some great posts and observations on it. Maybe the real estate shills are right, stocks are ephemeral, dot coms are computer fantasy, but real estate isn't going anywhere. They are right on that. Real estate isn't going anywhere. Just sittin'. Shocked
My book entitled "Da Bear's Guide to Making Money in Real Estate" will be out soon. Sneak peak: Chapter One: Don't buy real estate. Wait. Don't buy. Continue to wait. Wash, rinse repeat. Well, that's all i have so far! Laughing
Maybe chapter two will be chapter one but written in espanol. Perhaps a chapter three in Mandarin. The three most important words in real estate are "Liquidation, liquidation, liquidation."
Gold and silver were down this week. And silver is down more than gold, suggesting deflationary signs are here. A few days ago I posted in a thread to take profits in silver. I will stick with that. Why is deflation showing up? Other People just called, they want their Money back. Hedge funds sold stocks because stocks were down, and gold going down caused the hedge funds to liquidate gold. Ponzi called, he wants his Scheme back.
Da Bear on cash. Do you have any? Does anyone? Cash, or more appropriately Federal Reserve Notes (which are neither federal, nor reserves, nor notes) is what everyone needs, no one has and is going up in value. Why is it going up? Because we are running out of OPM. To borrow a line, OPM is the religion of the people. And now it is gone. OPM HATES America!
Cash may be trash, but so is Paris Hilton and she's loaded and can buy whatever she wants. And that's HOT!
How many FRN's are in circulation? Well, $2,500 in circulation per capita with a whopping 300 bucks in five's. The enemy (the Fed) of your enemy (the State) is your friend (FRN). Something tells me we will finish bank runs in record time. Roger Banister and Carl Lewis got nuthin' on US.
Stocks everywhere are going down and should go down for a while. EWI thinks very low. So do others. My (da bear) opinion is that stocks will bottom when the mass investor class gets out. If according to Prechter we are in c wave down, the Dow could end up looking like a Nasdaq chart, or a tulip chart for that matter. China and Shanghai got the stock bug, now they are paying for it. This new Chinese bear should set up the Mother Of All Buying Opportunities (MO ABO) in a few years.
The Dow's rise from last July's lows went in a steady uptrend to new highs (classic signs of a fifth wave) on decreasing volume. Tuesday's selloff was accompanied by HUGE volume and a sharply steep change in price (classic signs of a trend change, and a wave one in elliott wave terms). VIX (volatility) also exploded to the upside. Tuesday and Wednesday were record volume days for the S&P 500, so the bear is back and for real. On Tuesday 2 stocks were up with 498 down. This is one big bear!
da bear
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