You know that Second Depression I’ve been writing about since 1996? It’s here now and playing out on global markets around the world. Take Japan’s Nikkei, please. Down 3.6 percent in overnight trading. Early trading in Europe supports the hundred-something points down today and we seem now to have entered a wave 3 down period where things get exciting…
Well, actually, things got exciting here about 11 AM Monday. The Dow, which I had expected to zip up to the 10,250 area as a minimum, turned tail and dropped 140-points. I posted a personal trading note yesterday just after I execute the trade getting back into my short positions, but remember: none of this is trading advice, you pays your money and takes yet chances.
Oh, further downside is likely today and being on the short side again is comforting. A one percent decline would be about a hundred Dow points, but if the market takes out the August 25 low (9,925.34) then the next ‘biggie’ would be the battle for 9,600 (July 1, 2010: Dow 9,596.04). Then down toward 8,100…
A couple of key numbers are due out in the next hour or two: The Case-Schiller/S&P 20-City Mortgage numbers. Then the Chicago Purchasing and after that Consumer confidence. Any of these could knock the market down through the 9,925 barrier and set up 9,600. I’ll post them if I get time, so check back.
$3,401.50! Gold’s Flash Spike
A reader asked “How come Yahoo Finance was showing a Day’s Range of $1,233.00 – $3,401.50 for gold?” Data glitch or end of month inventory covering? May be linked to the Big China in Little Trouble story over refugee bankster officials, but whatever the reason, I sure liked seeing that gold $3,401.50 number however fleeting it was.
Check this YouTube offering at about the 8-second mark.
Also worth noting is the Bloomberg “Gold rallying to $1,500 as Soros’s Bubble Inflates.”
Patience pays better than work sometimes.
Refi Festival
The UK’s Guardian has pretty good coverage of the mortgage refi lines down in Palm Beach as 20-thosuand odd try to save their homes. The number of homeless in NYC is reported up 50%, so the collapse in slow motion is continuing.
I should set up some snazzy polling software one of these mornings when I get some time so we can do a poll to find out what percentage of people think we’re in an economic depression. It’d be an interesting number.
Oh, as long as we’re pawing through all the light and cheery stuff, about one American out of six is on welfare of some kind and – this is where we could get into hyperinflation - welfare agencies are working to boost voter rolls, says USA Today.
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Also on the Obama agenda – and maybe something in tonight’s speech? – Elizabeth Warren seems to be in line to take over top federal consumer protection activities. And that wouldn’t set well with the Street. Couldn’t happen to a nicer group of retirement thieves…
Pre-War Chess Moves
As the Russians are tailing Western subs updating their acoustical signatures – something that would only pay a return in event of war, president Obama is planning a speech to the nation tonight on how the Iraq War combat mission has (sort of) ended. How long’s it been since “flight Suit George” called it mission accomplished? Seven years, isn’t it?
You maybe saw the story “Saudis amass US weapons to confront Iran“? Other end of the spectrum: France and Britain are planning to share aircraft carriers. Money saving deal. Wonder if they write each other damage deposits on this 
The Tehran Times hasn’t missed the significance, however their focus in this article is on the ‘U.S. legacy of waste’ in Iraq. Kind of sad when our potential enemies have a clearer understanding of project management than we seem to. True, some of the schools, hospital upgrades and infrastructure is working, but as NPR sizes things up, I wonder did we get out money’s worth?
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BTW, Tehran is giving big coverage to the 40 million Americans on food stamps story.
Earl to NC
Latest computer models put Hurricane Earl arriving along the shows of North Carline about 2 AM Friday morning and then it seems probably to whack the east coast pretty good into the weekend before getting up to the Canuck maritimes on Sunday. There goes the weekend, eh?
Coming up next week is tropical storm Fiona and there’s a new depression forming on the west coast of Africa that could follow. My neighbor who goes out insurance adjusting oughta be busy as a one-armed paper hanger for a while.
Climate Sparring
Pick one: “Climate change lies are exposed“ OR “Why failure of climate summit would heald global catastrophe: 3.5º”
Marketing Madness
I admit to being a mobile technology Luddite, but AutoCad going to the iPhone? Hand me the ViceGrips – and while you’re doing that, let me tweak the girders on the 27th floor…they look a little weak…
Egads! Lend me your phone, I need to design a data center building.
