Yes, dear reader, the stock market seems to have turned.
“Grim Joe Report Sinks Markets,” reported The Wall Street Journal.
We’ve had our ‘Crash Alert’ flag up for the last two weeks. Hope it helped.
Day after day stocks have been falling. And day after day brought more bad news. Greece was on the verge of collapse. US growth figures revised downward. Consumer sentiment fell. House prices are still going down. Unemployment is going up.
The whole world is ‘turning Japanese.’
And then, oil closed at $83 on Friday. The Dow fell 274 points. The 10-year T-note must have thought it was already in Tokyo; the yield dropped to an unbelievable 1.45%. Was that a typo on the Bloomberg line?
And get this, gold rose $57.
The Great Correction is getting greater. And the odds that the feds will panic…in the US or in Euroland…are increasing.
Remember, the Fed works for the banks. And the bankers know who their ultimate master is. They’ll play it cool. But if stocks fall below 10,000 on the Dow…and unemployment gets worse before November election…they’ll come in with more QE. That’s why gold is up so strongly. Investors are running scared. They know they can’t trust the euro. As for the dollar, they’re not so sure….
We can hardly wait to find out what happens today!
for The Daily Reckoning Australia
From the Archives…
When Capital Comes A Knocking
2012-06-01 – Greg Canavan
When the Pain From Spain Moves Across the Plain
2012-05-31 – Greg Canavan
Greek Game Theory: Default, Devaluation, Austerity, Deliverance?
2012-05-30 – Nick Hubble
Desperate Stock Market Traders Waiting To Be Made Whole
2012-05-29 – Murray Dawes
Greek Elections: The Fear of Uncertainty
2012-04-28 – Dan Denning