mercredi 25 juin 2008

A sooth sayer speaks

Interesting economic site called market oracle that is pretty sceptical about the reassuring pronouncements the governance puppets keep coughing up. Michael Swanson writes that in effect with inflation a major concern, banks in trouble and a major stock market correction in progress, we are at the same point as we were last year economically. In other words, there is a lot more bigger trouble ahead, he reckons.

"I think we are likely to see a Fall shock hit the market. Last year we saw the Fed do a 180 degree turn from talking about inflation to cutting rates like a mad hatter. This year I believe we will see the Fed abandon its talk of fighting inflation to once again intervening to bail out some bank, patch up the leaky economy, or in response to a stock market mini-crash. I think the situation right now is like it was a year ago - everyone is worried about inflation, but the bigger problems lurk in the cooked books the banks are carrying. In fact we are more likely to see more problems emerge and the stock market go lower as that is the primary trend right now. "

Sell your BAT shares comrades and buy gold. Teeth that is.