From a web site reader:
> I enjoy reading your web logs and totally agree with the
> financial crisis we are going to have. Technically the market
> looks like it is about to break key support and the meltdown could
> start this week.
> Do you think it could start that soon?
> I am going to put on short positions on any rally.
> Do you think the Government has any more tricks?
A generational panic and crash could occur next week, next month or
next year.
Could it happen the same week as Thanksgiving? Could it happen in
the weeks before Christmas? Could it happen in the weeks before
President Obama is to take office, walk on water, and save the world?
It makes sense that there are many hedge fund managers and investors
who might otherwise be selling off right now, but who are hanging on
by their fingernails in the hope that Obama will keep his promise and
change the world from the moment he takes office.
That's one side of it.
The refutation to that theory is that the market has already fallen
17% since the November 4 election.
Furthermore, other indicators are very worrisome: Volatility is
through the roof, and the credit markets are still almost as frozen
as ever.
So I return to the view that the meltdown could happen on any day,
and could be triggered by anything - a word, an action, an event
that's totally unpredictable.
Sincerely,
John