On Wall St: Credit squeeze turns into a raw saga


Saga is about the right word. I think we’re on about Chapter 3 of a very long book.


China will be the final nail in the coffin.

Want to see an interesting chart?? Overlay U.S. Housing price charts
from 2001 to 2005 with the Shanghai Stock market for the last 2 years.
They’re interchangable. Shangehai is opening 300,000 new stock trading accounts a DAY!!! THAT is mind boggling. The upper class in China are having a very hard time finding domestic help because maids are literally quitting their jobs to play the stock market. These are the EXACT types of investors that create crashes. WHEN, not IF, it goes we are all going to pay the price.

It’s all a giant 3 dimensional world puzzle now a days. What effects the one will effect the many.

We have absolutley no idea how bad things REALLY are out there.

The dollar is in free fall. THAT is causing oil prices to soar to never before seen levels. (Oil is priced in U.S. dollars, as the dollar loses value, oil moves up to make up the loss)

$900 Billion worth of ARM’s adjust in 2008 for the first time. Remember, this mess got started with just $200 billion readjusting in 2007. We haven’t even seen the tip of the Iceberg yet.

My personal feelings are that 2008 -2009 will get so bad that even the mention of real estate investments will cause most people to react like you told them you enjoy drinking bleach. THAT will be the bottom of the market. When even the thought of real estate investments send the masses running for cover you should all sleep well at night KNOWING the worst is over. It’s classic contrarian investing, buying what other people won’t go near!!! VERY, VERY profitable and VERY low risk!!

Chinese stocks like BIDU and PTR are prime examples.