Stock market is prime for all out crash. If Obama administration is going to throw a hail mary, it better get cracking in the next 12 hours. However, the DOW has closed above 7,400, at 7,465.95. My earlier post stated on a closing basis I need to see the DOW close below 7,400 for me to flip into panic mode. If new to this blog, please read this post for the last 3 days view.
I have stops in, to protect some of my portfolio from a collapse. We are talking a lifetime changing event is now on the table, ready to start. Everything points to a crash now, time will tell if it will just follow through.
What needs to be done?
Obama needs to get righteous and have a heavy hand against corruption to restore faith in the system. Also all assets that cannot be priced, need to be priced. Need to eliminate immediately any reservations on valuations of assets. Pouring money into a system that is perceived (right or wrongly) as corrupt will not restore confidence. Anything short of the appearance of the government about to "fix" the businesses involved in questionable accounting and business practices will result in one thing: Collapse of US economy.
General News
CitiBank, JPMorgan, Bank of America, Wells Fargo, credit spreads widen significantly
Wholesale inflation takes biggest jump in 6 months
Worst Job Losses in 50 Years Ahead: Fed Economist
US authorities 'had been investigating Allen Stanford for 15 years' (Yet another Ponzi scheme)
Insurance Company News
Fitch Downgrades Prudential Financial Ratings; Outlook Negative
Nationwide Mutual CEO Jurgensen leaves company
Video from Karl on what "illiquid assets" are, and the basic main issue facing the market today
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