Treasuries gained and stock market collapsed to a three month low – a clear sign of deflation driven recession
Fred Day
Mar. 3, 2007

The biggest question is how bad will it be?

The investors, the analysts and the hedge fund mangers are asking that question. The answer is that most likely it goes way nastier than one could ever imagine. The ferocity with which the stock market fell in the last 35 minutes on Friday, March 02, 2007, it is very clear that something fundamental is wrong in the economy. It is deflation showing its power on the stock market.

Anything that went up based on borrowed money and artificial liquidity in the last ten years is falling apart. The bubble burst is expected to continue show its chilling effects for at least thirty years.

Interestingly, Nasdaq, which never even tried to look towards is old high in year 2000, is actually leading the drop. The tech stocks are gelling clobbered. They face severe problem from lack of innovations at the fundamental levels. The gold market is also facing trouble because of lack of liquidity.

Sixty-three out of the sixty-five Dow stocks fell on Friday – the worst market technical strength seen since 1929
Peter Oberois
Analytics normally do not just look at the percentage fall in the market. It looks at the breadth of the market – how many stocks can really defy the fall in the overall market.
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Treasuries gained and stock market collapsed to a three month low – a clear sign of deflation driven recession
Fred Day
The ferocity with which the stock market fell in the last 35 minutes on Friday, March 02, 2007, it is very clear that something fundamental is wrong in the economy. It is deflation showing its power on the stock market.
READ MORE>>

Subprime mortgage-lending problem spreading to all other mortgage classes – real estate hit by deflation as liquidity dries up to cover margin calls in stocks and futures
Peter Oberois
Subprime mortgage-lending problem spreading to all other mortgage classes. Banks for the first time are not receiving mortgage payments that they depended on for years.
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Deflation starts hitting the economy bottom up – the stock market keeps plunging slowly but steadily
Sam Adelton
Start of the end of the euphoria is quite near. The market plunge resembles very closely that in August 1929. Bulls are still there. They are actually buying now as market slowly wipes them out through margin calls on stocks and options.
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Can Dow Jones Industrial Average crash in April?
Sam Adelton
The investment gurus are closely watching the pattern of movements in Dow Jones Industrial Average. It seems Dow resembles the pattern of 1987. But a closer and more analytical look shows there are some significant differences.
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A great investment for the next ten years – buy sugar and sell the crude oil
Peter Oberois
It is the promise of steady supply without any cartel that will drive the sugar prices up. At the same time crude oil prices will fall as countries and industries adapt to clean fuel and dependable non-geopolitical supply of energy.
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The almost unchanged confidence level in the University of Michigan data points to complacency – a typical sentiment in deflation driven market collapse
Peter Oberois
Complacency is always followed by a serious stock market decline. It happened again. People are complacent and the consumer confidence levels are very high compared to the fundamentals in the economy.
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