Dupont another indicator that we have not he real bottom yet as it also is on a week 10 count (13 needed) to complete the downleg. So we need to dip to or slightly below 20 to complete this leg down and as we enter the second Dec week next week the lows should be made early Jan. , which makes sense by many aspects but mostly as the numbers from Obama closer to a tril will e official and nother round of rate cuts including Europe wil be behind us. Forced selling will be done for this leg and fresh printed money will be thrown from helicopters on the economy and consumers ( so far it as provided to bankers ) which will at a later point shoot inflation through the roof. But first the hope card will be played with the new administration but just to give you a figure I just heard at Bloomberg TV which made sense to me is that bad loans due to the economic erosion will be around 3 tril next year that will stand against a possible 1 tril aid package. Bad loans means again real economy that will be topped by erivatives on those loans being triggered - that will trigger final bankruptcy of banking and of states as they do not have those resources to stop that tide. This is 2010's likely scenario - mass bankruptcies of banks and the near collapse of states - not talking about Iceland.
Friday, December 5, 2008
Duponts low soon - ugly things to come in general
Dupont another indicator that we have not he real bottom yet as it also is on a week 10 count (13 needed) to complete the downleg. So we need to dip to or slightly below 20 to complete this leg down and as we enter the second Dec week next week the lows should be made early Jan. , which makes sense by many aspects but mostly as the numbers from Obama closer to a tril will e official and nother round of rate cuts including Europe wil be behind us. Forced selling will be done for this leg and fresh printed money will be thrown from helicopters on the economy and consumers ( so far it as provided to bankers ) which will at a later point shoot inflation through the roof. But first the hope card will be played with the new administration but just to give you a figure I just heard at Bloomberg TV which made sense to me is that bad loans due to the economic erosion will be around 3 tril next year that will stand against a possible 1 tril aid package. Bad loans means again real economy that will be topped by erivatives on those loans being triggered - that will trigger final bankruptcy of banking and of states as they do not have those resources to stop that tide. This is 2010's likely scenario - mass bankruptcies of banks and the near collapse of states - not talking about Iceland.
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