Black Monday coming?, page 1

I've mentioned before that this week's sell off is identical to that of 1987 and 1929 - before the market crashed.

It seemed my theory has been picked up by CNBC.

Keep this in mind as next week starts. Cramer can’t decide if this market is closer to 1987 or 1929, but he’s pretty sure bad news from Morgan Stanley and lack of good news from the world’s industrialized nations could cause a sizable drop in the markets on Monday and Tuesday. The Dow could go as low as 5,886, he said.

CNBC - Jim Cramer

Jim, during his "they know nothing!" moment, actually predicted that major firms would fall during this crisis (back when the credit crunch started), and Jim also thinks the Second Great Depression is possible.

Let's hope the politician's do not let us down over the weekend. We need a detailed plan - not statements.

[edit on 11-10-2008 by infinite]

I've only just gotten up to speed with these goings-on relatively recently, but all I can pick out of the G7 meeting is nothing but statements.

Namely the one page statement with 5 agreements that they believe should be done - which from what I can surmise, only contains elements that have already been announced, such as buying up the bad assets.

The International Monetary Fund (IMF) has estimated losses from the credit crisis could reach $US1.4 trillion, or about double what banks have written down so far.

That would leave a gaping hole on balance sheets and restrict already tight lending.

"We should not imagine that we will have a harmonised response that will be the same for everyone, quite simply because you cannot apply the same method to market situations that are different," French Economy Minister Christine Lagarde said earlier.

www.abc.net.au...



[edit on 11-10-2008 by mattguy404]

reply to post by BlackProjects

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It's statements like this that have made me giggle for some years when listening to "investors" talking about the stock markets - taking positions, going long/short, etc., etc. What you are really doing is gambling on a fake system. All the money that has been "lost" over the past few weeks and months was never there anyway. Normal people were convinced to exchange their cash for paper they have been told is worth something, and now we are seeing how much it is really worth.

If the share market goes up 20%, does that mean that 20% more cash has been created out of nothing? If it goes down 20%, does that mean that nothing disappeared anyway?

Once we all wake up that its all just bull# designed to get the middle classes to put their money into a scheme to make the ruling classes richer, we'll all be better off. Banks should not be able to lend multiples of their deposits, and currency should be tied to gold or some other valuable commodity. Once the "rules" are changed to allow people to create money from nowhere, its the start of a slippery slope that eventually comes unstuck.

I wish you the best with your "position", but by calling it that you're demonstrating that you've fallen victim to marketing that tries to convince you that you're doing something far more sophisticated than just gambling.

reply to post by Snappahead

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An excellent summary of the situation.

If investors knew what they were doing, there wouldn't be this panic selling...

It's going long hedged with negative geared leveraged securities of derivative packages...

Or something.

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