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

Brad Haslett flybrad at gmail.com
Fri Aug 10 07:51:50 EDT 2007


Dave,

Let's hope I'm right and you're wrong.  It smells like a necessary
correction and a mild "bank run" to me.  I'm at least ten years away from
needing to cash-in any chips so I'm along for the ride.  What a good one the
last six months have been, I "made" more money in my 401K than my day job
pays.  I knew that wouldn't last.

Other than the Fed stepping in to prevent a liquidity crisis, I hope the
government does nothing.  My personal solution is to drive to Branson, MO
today for a mini-vacation before Cora starts school.

Watch the market for me today and cry for us all  if it gets any more nasty.

Brad



On 8/10/07, DCLewis1 at aol.com <DCLewis1 at aol.com> wrote:
>
>
> 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
>
>
>
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