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The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

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The Chickens are Returning: A Retrospective On The Stock Market High

  • The S&P high was 1576 set on October 11, 2007.
  • In late January, 2008 we noted the 55-day plunge in the Nasdaq and observed that, typically, that kind of a move ended outstanding bear markets.
  • We used the post-1973 and post-1937 rebounds as our "model".
  • It has been a good guide.
  • The prospect of a significant decline in equities was covered in our "Global Warning" of October 16, 2007 and "Disappearing Liquidity" a couple of days later when the sub-prime bonds broke down. These are attached along with the instructive cartoon from November 13, 2007.

* * * * *

  • As discussed in Wednesday's Pivot, credit spreads and the yield curve have extended the move towards disorderly conditions likely to be suffered this fall.

* * * * *

Link to August 22nd 'Bob and Phil Show' on Howestreet.com: http://www.howestreet.com/index.php?pl=/goldradio/index.php/mediaplayer/938

 

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