The combination of falling earnings and falling P/Es does to stock prices approximately what the Romans did to Carthage in the third Punic War. That’s why we have our Crash Alert flag flying. Stock prices delenda est. Typically, depressions come with bear markets. And bear markets come with bounces and rallies. We expected an O! Bama! bounce after the election. We got one…but much less than we expected. Stocks only rallied about 15%…
February 19th, 2009 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "crisis"
Circle September 26th on Your Monetary Calendar
Bankers are bankers, after all. Their product is money. But they have gold in their vaults for a reason. It was money before paper was money. So September 26th may mark the end of the orderly and coordinated management of gold sales by European Central Banks. And it may mark the beginning of a new monetary era where gold reasserts its importance as money…
January 28th, 2009 | Dan Denning | 2 comments | Continued
The Crisis Comes As No Surprise
For us, here at The Daily Reckoning, the crisis comes as no surprise. Heck, we saw it coming years ago. Of course, even we didn’t think it would hit so hard… and so wide. We thought Japan, for example, would be spared.
November 17th, 2008 | Bill Bonner | 3 comments | Continued
O! Bama! Where is thy bounce!
Yesterday, stocks got whacked again – the Dow was down 411 points, bringing the loss for the year to more than 4,000 points. Oil fell to $56 a barrel; investors feared that the world’s drivers would leave their cars in the garage and the world’s teenagers would begin turning off the lights when they left their rooms.
November 14th, 2008 | Bill Bonner | 3 comments | Continued
Economic Recession is Inevitable Despite the Government’s Efforts
In the last few weeks, it has become clear that the current financial meltdown is not our usual, run-of-the-mill crisis. It’s supersized, inexorably linked to the rest of the world, ruled by chaos, and precariously perched atop a mountain of debt. “What makes this crisis different from some of the earlier ones,” says IMF Historian James Boughton, “is that the interlinkages among financial institutions are much greater now than they used to be.”
October 22nd, 2008 | Oliver Garret | 1 comment | Continued
Food, Fuel, and Finance: The Crisis of the Three Fs
The grand poobahs of the world’s economy are wringing their hands in worry over the three Fs, each its own kind of crisis: food, fuel, and finance. As usual, it’s the people at the margin (whether lending or with food) that are affected first when surplus turns to scarcity. Despite all the daily signs of abundance here in Australia, let us not forget that there are about four and half billion people on the planet who have little margin for error in their daily lives.
April 14th, 2008 | Dan Denning | 10 comments | Continued