Global Slump Continues in Asia - How Low Will It Go?
Hi Friends,
I'm on the road bright and early Thursday morning for a quick business trip out to the West Coast. At midnight here on Wednesday night, I see that markets in Asia are picking up - or should I say down - where the US markets left off. Japan is down 3%, China down 4%, and Hong Kong down close to 5%.
This is serious, friends, and I'm sure you don't need me to tell you this. I'll be back next week and I'll have a full report on what is going on with the markets. In the mean time, I don't mean to panic anyone, but there is the possibility that this cascade of selling turns into a real crash later this week and early next. According to the analysts at Elliott Wave, the market is now in a third wave decline at multiple degrees of trend. If you know what that means, I needn't say more. If you don't know, it means that there is a high probability of a crash. They have some free reports here to help clarify what is going on with the market here:
Even if there is no crash this week or next, it seems pretty clear that we have passed a line in the sand. Take a look at the charts of the financials LEH, FNM, FRE, AIG, etc. From $150 - 200 per share less than two years ago to bankrupt! If it can happen to them, it can happen to other companies that seem invincible as well. It is already happening to once venerable US companies like Ford and GM, and even Dell, and soon to Apple and RIMM. Same for restaurateurs like the Cheesecake factory, and Darden (parent company of the Olive Garden).
We're entering a new phase in which Americans have neither money nor access to cheap credit. Sure Americans can afford a new $2,000 computer if they can charge it, and what if they can't? That is the financial world we're living into, imo.
Again, I will be away from the desk all day Thursday and will check back in the evening, once I get to my hotel. Good luck everyone, be careful and check out some of those reports.
In Liberty,
Michael
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Where is the plunge protection team when you need them!?
My father has subscribed to
My father has subscribed to Robert Prector's newsletter and followed the Elliot Wave Theory religiously since Prector (sort of) predicted the crash in 1987. He has lost almost all of his money. Elliott Wave theorists have been preying on the Depression-era generation by predicting a major crash consistently since the 1980's. The Elliott Wave Theory is total and complete bullshit. It's a cult. I think we're in for some tough times, but since Prector and his boys are predicting it too, I feel much safer.
Maybe they'll shut down their markets
H Seng 16,353.52 -1,283.67
Yikes! Where to in Cali? I've made the Boston to CA flight about 100 times. I still hate it!
Russia shut its market till friday
Freedom may be worth searching for.
Remember, Dont battle the govt with guns(ALONE), Beat them in court, in state legislature, or hire Ron Paul for president.
Freedom may be worth searching for.
Remember, Dont battle the govt with guns(ALONE), Beat them in court, in state legislature, or hire Ron Paul for president.
Hedge funds will short financials to zero
Paulson's recent actions motivate them to: http://www.youtube.com/watch?v=dDd51v7prtI
Check out Karl Denninger's blog: http://market-ticker.denninger.net
I expected things to go downhill, but not this fast.
Karl may know what he is talking about
But he has a flair for the dramatic and a bit hard to watch IMO.
[00:13] !asia [00:13]
[00:13] !asia
[00:13] Asia:
^AORD (All Ordinaries/Sydney, New SWhales, Australia): 4,594.200 -175.500 (-3.68%)
^SSEC (Shanghai Composite/Shanghai, China): 1,816.442 -112.605 (-5.84%)
^HSI (Hang Seng/Hong Kong): 16,312.26 -1,324.93 (-7.51%)
^BSESN (BSE 30/Bombay, India): 13,262.90 -54.762 (-3.09%)
^JKSE (Jakarta Composite/Jakarta, Indonesia): 1,715.132 -54.762 (-3.09%)
^KLSE (KLSE Composite/Kuala Lumpur): 1,002.99 -9.38 (-0.93%)
^N225 (Nikkei 225/Tokyo, Japan): 11,346.92 -402.87 (-3.43%)
^NZ50 (NZSE 50/New Zealand): 3,158.330 -111.600 (-3.41%)
^STI (Straits Times/Singapore): 2,308.85 -110.44 (-4.56%)
^KS11 (Seoul Composite/Seoul, S. Korea): 1,374.2 -51.06 (-3.58%)
^TWII (Taiwan Weighted/Taiwan): 5,592.32 -208.55 (-3.60%)
AORD down another .12 in ten minutes.
___________
Lisa C.
**This space is available.**
Ron Paul "Sign Wave Across the USA" -- November 5th!
Be safe Mike
Wow, Nikkei down 407. futures before the open were at like -350. Hang Seng futures are at -1000
Thanks Mike
Yeah, please help me hold the fort ;).
Looks bad. Hong Kong Now down 10%!
Just remember that the 1929 black Tuesday crash was"only" something like 12%, but it was a long, slow tortuous decline that took it down a total of 50%, including the crash day.
The high on the Dow was around 14,000, and the 2003 lows are around 7,000. It isn't out of the question that we could see 7,000 on the Dow by next month. We may have a "crash" like in 1987, where the market lost 22% in one day, or it may just dribble on like this for a month or so - down 2% here, 4% there, up 1%, down 3%.
Remember rule 1: Don't Panic! Followed closely by Rule #2: Panic first!
This is unbelievable. Almost surreal.
I described it in another thread as the equivalent to a lawn chair and a front row seat to armageddon.