Do not listen to this audio clip.

Discussion in 'Financial Cents' started by melbo, Aug 5, 2007.

  1. melbo

    melbo Hunter Gatherer Administrator Founding Member

    It will depress you and I have been accused of being a doomer lately.
    Please do not listen to how the world markets lost $2.6 trillion in 2 days last week.

    The Emperor has no clothes.

    Do not listen.

    Smoke some pot or something.

    You are getting sleepy
  2. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Here is the series of charts they refer to during the presentation

    Recorded July4th 2007, the theme of this show is "The Emperor Has No Clothes" much of the dialog between Steve and Ben focused on what is going on with the sub-prime lender failures and the Bear Stearns problems with the fancy new mortgage related that are going to cause billions of dollars in losses for many investors. As is pointed out in this show, what we're seeing now is only the tip of the iceberg. You may want to take a look at the latest news on Subprime Loan Issues and News. Click "Read more" below for full details

    Houston, We have a problem

    Chart # 1
    Chart # 2

    Chart # 3
    The “average” from the table above is a -30.6 decline/correction.
    The high in 2007 was 14,121.00 (cash Dow)
    14,121.00 – 13.3% (table low) = 12,242.91
    14,121.00 – 30.6% (table average) = 9,799.97
    14,121.00 – 49.1% (table high) = 7,187.59
    14,121.00 – 21.9% (200 day moving average) = 11,028.50

    Chart # 4
    Chart # 5

    Chart # 6


    Below is a picture of the Fed “injecting liquidity” to stem the decline…

    With banks failing, record foreclosures, record defaults, missed margin calls, pulled CBO’s (corp. buy-outs), the next thing that “has to give” will be interest rates.
    Chart # 7
    Chart # 8


    If rates do not increase during this liquidity crisis, the Dollar will be cut in half; then interest rates here will increase anyway…
    Chart # 9
    Chart # 10
  3. Bear

    Bear Monkey+++ Founding Member Iron Monkey

    Good Info[winkthumb]

    Reminds me... I'll bet alot of folks are deciding which pill to take...
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