[Rhodes22-list] Dow Jones.....I hate to say it.....

[DCLewis1 at aol.com]

Brad,
 
Your point about the business cycle is well made - but the issue is what's  
bringing it down.  Is it "the usual stuff", or is it something truly  sinister? 
 
Two ponderous and conservative governmental institutions, the ECB and the  
Fed, that like to move slowly and with incremental steps, moved quickly to  make 
available up to 95 Billion Euros(ECB) and 24 Billion USD - done within  a 
space of less than 8 hours(maybe less than 4 hrs, I didn't time out when I  
learned about each move).  That's a lot of money and they skipped a lot of  
staffing to move that quickly - It tells me there's a big  urgent problem.
 
We know a variety of US, UK, and Australian hedge funds have  folded.  We 
know many mortgage companies have folded - not in trouble  and hence had to cut 
back - simply put out of business.  We know of 1 US  investment bank that's 
taken a big hit.  We know of at least 1 German bank  in receivership.  Today we 
learned the second largest bank in France is  stressed.  This is not normal.  
As I recall, most business cycles end  because of inventory imbalances - this 
is nothing like that, this is a financial  melt down.
 
Welcome back!
 
Dave



************************************** Get a sneak peek of the all-new AOL at 
http://discover.aol.com/memed/aolcom30tour