A stunning Monday – I found the malls empty like never before – how long can stock market survive on artificial hype?
Fred Day
May 8, 2007

The price tag is lower. The discounts in stores in the malls are high. But it was a stunning effect – the malls are empty. The consumer confidence is taking a massive hit right at this moment with lower job prospects and higher gas prices.

The commodity inflation has translated into higher energy prices and food prices. The artificial liquidity created caused massive asset inflation and that in turn has created the biggest bubble in the real estate market. The gap between Wall Street and Main Street is like never before. People do not know how to pay for their next month’s mortgage. In the mean time, credit card companies have raised rates without any reason, lowered credit limits without any reasons.

The distress, underemployment, and the sense of insecurity among the common hard working people are so severe that people are losing the meaning of the ‘dream’. The confidence in the whole system is shaken.

The stock market is hanging in there with a hope Fed will create another balloon type bubble somewhere somehow. Time may have run out. Dot com bubble busted, mortgage refinance bubble busted, the real estate bubble busted, it’s the turn for the M&A sector, precious metals and Energy sector bubbles to get busted.

Oil headed for a $40 a barrel – gasoline headed for $1,50 a gallon because of lack of demand and excess supplies
Marla Guthrie
In the past whenever the gas station in April-May showed resiliency is lowering gas prices as crude prices dropped, the gasoline prices tumbled in June-September. Expect the same this year in a higher scale.
READ MORE>>

A stunning Monday – I found the malls empty like never before – how long can stock market survive on artificial hype?
Fred Day
The price tag is lower. The discounts in stores in the malls are high. But it was a stunning effect – the malls are empty. The consumer confidence is taking a massive hit right at this moment with lower job prospects and higher gas prices.
READ MORE>>

Mortgage rates headed lower but mortgage defaults rising fast – what is the future of the residential real estate markets
Peter Oberois
The future of the residential real estate market is not good. The stabilization that the Fed was looking for is not happening. Fed needs to lower rates to fight the reality – the stealth deflation.
READ MORE>>

Wholesale Inventories remain unchanged but stealth deflation risk to the economy is highest – effect on Dow is severe
Sam Adelton
The stock market is in a cyclical bull run within a severe secular bear market that started in 1974. Inflation adjusted and especially when traded against gold, stock market is running sideways since 1972.
READ MORE>>

The Treasury bonds can raise handsomely this weak with overall bearish news on the economy
Sam Adelton
The massive jump in Treasury prices will happen between now and the end of the year as Fed finally realizes they are trapped by deflation like never before since 1929-33 Great Depression.
READ MORE>>

News this week shows economy is headed for a deep recession slowly but steadily – time to buy bonds an sell stocks
Sam Adelton
When Nikkei was in upper 40,000s and was rising every day, no one could believe Nikkei will fall below 10,000, Japanese economy will hit by deflation and after twenty years, Nikkei is still below 18,000.
READ MORE>>

MORE ARTICLES >>