It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
At the Camp David G8 meeting last weekend, lip service was paid to keeping Greece in the euro zone. But economists who watch the continuing financial crisis in Europe are increasingly coming to two conclusions: Greece is likely to abandon the common euro currency now used by 17 European countries. And when it does, perhaps within a matter of months, there will be a damaging domino effect throughout much of Europe.
Global economy-killer? Yes, Facebook has now been added to my list of global macroeconomic triggers (deadly unpredictable Black Swans like the dot-coms in 2000, subprimes in 2008) that the denial system driving the collective brain of American investors will simply tune out, till it’s too late. Till a crash takes the economy down again. And, yes, it may take years, or trigger in 2012. We watched the same kind of buildup to the 2008 crash for a few years in advance, as credible warnings were ignored. Yes folks, Facebook is that dangerous to our economy and to the global economy.
The long-term chart of the S&P 500 is showing a failed Double Top that reflects the buildup of unsustainable private sector debt between 1977 and 2007 along with the extraordinary and concerted efforts of the world’s central banks to shoulder that mountain of debt by pumping liquidity into the global financial system starting in late 2007 with such efforts continuing today. This pattern’s failure to trade to its minimum target of 425 has resulted in the strong possibility of the S&P 500 trading into a bearish Flat-Topped Broadening Top and/or a Triple Top. Either such pattern carries an equally severe downside target as the original Double Top but requires a move up to about 1550 within 12 to 24 months prior to such a potential decline might occur. In turn, these possible patterns would seem to suggest that the global economy may be about to enjoy a brief recovery prior to a severe recession or even a depression.
Its Bull Wedge is currently failing not into a true Bear Pennant that is showing in AAPL, JNK, the Dow and the S&P or the Descending Triangle that is toying with the Nasdaq Composite and the Russell 2000 but some bearish appendage that can be described only as ugly, really ugly, with its appearance suggesting that there are some more negative surprises to come out of the big US banks somewhat soon.
Frightening, though, is the fact that this potential decline of nearly 30% from yesterday’s close and nearly 40% from this year’s likely top may be only the beginning of a much bigger decline and a good reason to run from the burning banks before the real fire begins.
Originally posted by Drew99GT
what's happening has happened many times over in history, like babybunnies indicated, it's just that we all are going to have to live through this one.
Hear me out on this. You guys at ATS are a smart bunch.