Copper prices confirming deflation in the financial system and severe recession in auto and housing sectors
Karen Zuba
Feb. 9, 2007

Copper prices keep falling every day. It seems the next support far away. The chart patterns are clear- a severe deflatio driven recession in auto and housing sector is imminent. People just cannot buy homes and cars any more.

The copper prices also confirm that US troops are coming back at the end of this year. The war will stop. China and India both have started stagnating. Stagnation there will eventually change into deep depression.

Industrial metals and alloys like steel will get severely affected. The Mittals and Tatas will learn their lesson of a life time as stell prices slump more than 70% in the next five years.

The recession in auto and housing sector is real. The Japanese Government will be forced to bring Yen back to a level of fairness. Tight now 120Yen trades for a dollar. Many analysts believe it will come to 90 Yen to a Dollar. That will make Toyota and Honda collapse. The auto and realestate sectors are slumping badly. They always lead severe recessions. The housing market is leading the recession this time because of excessive borrowing against the homes.

Copper prices confirming deflation in the financial system and severe recession in auto and housing sectors
Karen Zuba
The auto and realestate sectors are slumping badly. They always lead severe recessions. The housing market is leading the recession this time because of excessive borrowing against the homes.
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Real Estate in real trouble – mortgage defaults in January reached level like never before and most property owners are aiming bankruptcy to avoid foreclosure!
Peter Oberois
HSBC’s problem is just tip in the iceberg! The banking collapse will be severe. The financial systems can meltdown in a global scale.
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One more similarity with 1929 - US Congress takes aim at Tokyo and Beijing over yen and Yuan
Sam Adelton
The US Congress dominated by the democrats are clear about theur intentions. They will not tolerate the Central Banks of japan and China continue to artificially amnipulate and kwwp their currencies undervalued. It hurts US mnaufacturing.
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Slightly higher Initial Jobless Claims, lower Wholesale Inventories and lower Wholesale Sales pointing to stagflation slowly changing to deflation – how will markets react
Alan Hershey
. The speculative mania reached new highs in most of the asset classes. As stagflation changed to deflation, the Employment and Wholesale Inventories showed no significant changes. People were complacent till the day of the stock market crash.
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In 1920s real estate collapse and stagflation preceded the stock market crash, deflation and depression – history repeating again?
Peter Oberois
In the middle of all this like in year 1929, the year 2007 marks the end of a twenty year banking bull market. The banks based on cycle study will start going belly up.
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Dow Transports reconfirming the market’s bullish primary trend under the Dow Theory – bull trap or bear killing spree?
Marla Guthrie
The biggest question now is this a bull trap or the last chance for the bears to put their cash to work.
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