Friday, May 07, 2010

A few days ago a friend of mine asked why this 'crash' that I'd been talking about hadn't happened yet...

SHOOT: See people got really caught up in all the spin about 'recovery' this and business-as-usual that, pretty soon people completely forgot that Dubai needed to be bailed out - yeah, an entire country. They also didn't really want to think about other entire countries that are in a financial mess, like Iceland, Venezuela, Ireland, Italy, Portugal, Spain and of course Greece. But because you don't want to think about things and play let's pretend and maybe do some delusional Goldman Sachs stuff [bet against your own clients just as long as you come out with a few bucks] - even if you do that stuff, you can't derivative away from reality. Here's another forecast. Oil will go deep into the nineties over the next few months. And probably slide all the way down, but depletion is a real threat, more than demand - and contraction is going to be the theme for this generation from here on out. And probably for the next generation too.
clipped from
Traders work on the floor of the New York Stock Exchange, Thursday, May 6, 2010, in New York. It was a painful flashback to the darkest days of 2008:

NEW YORK – It was a painful flashback to the darkest days of 2008: Stocks plunged and the Dow Jones industrials skidded by hundreds of points as traders succumbed to fears that Greece's debt problems would halt the global economic recovery.

The Dow lost almost 1,000 points before recovering to a loss of 505 as traders watched protests in the streets of Athens on TV.

Computer trading intensified the losses as programs designed to sell stocks at a specified level kicked in. Traders use those programs to try to limit their losses when the market is falling. And the selling only led to more selling as prices fell.

"The market is now realizing that Greece is going to go through a depression over the next couple of years," said Peter Boockvar, equity strategist at Miller Tabak. "Europe is a major trading partner of ours, and this threatens the entire global growth story."

losses in stocks were so widespread that just 139 stocks rose on the New York Stock Exchange, compared to 3,029 that fel
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