1987, or 1929, Around The Corner?
Posted in H.L. News, Main Blog (All Posts) on May 7th, 2007 6:10 am by HL
Falling US dollar and surging stocks, like in 1987!
AME info.com
Excerpt:
Remember the Wall Street crash of October 1987 when stocks had their worst single day in history? Older market professionals certainly do. They also recall that the 1987 crash came after a sharp weakening of the US dollar and a rally in stocks. Is that not what we are seeing again now?
This Day of Reckoning can not be far away, and a sudden reversal of confidence by foreign investors could crash the US stock market for reasons very similar to what happened in 1987: equities riding too high on a cheap dollar.
However, the level of leverage in the capital markets is generally acknowledged to be very much higher than in 1987, beyond even what produced the Wall Street crash of 1929. So the fireworks, when they start, will truly light up the sky.
Leading the leverage boom is the hedge funds followed by the private equity funds. Nobody is exactly sure how much leverage is in the system from the derivative structures erected by these financiers but it is a house of cards that will come crashing down in a stock market correction.
HL’s Take
With the disaster monkey running the show, does anyone beleive that this is not a strong possibility. That would be the perfect F.U. ending to a perfect F.U. Presidency. A nice little going away present, severe depression, and recession, while the murder monkey slinks off to Paraguay with the U.S. Treasury.
May 7th, 2007 at 1:25 pm
HL you are one of those people that only sees doom and gloom arent you. You don’t see anything that is good. No left me rephrase that you don’t see anything that is good from a republican do you. You have a sad life don’t you. It’s to bad that you follow a losing party. That is all the Democrats are. They want the coutry dependent on the government an you say that the republicans are the cause of what is happening now. You need to read something other than that media crap that you are reading it is messing with your mind.