RE: RE: RE: RE: Another Big Daddy BailoutHere is a good summary on the foreclosure subject:
https://www.safehaven.com/article/18580/the-subprime-debacle-act-2
What makes banks vulnerable is that they are all leveraged 20-30x. A 3-5% loss for a bank can lead to insolvency. The house of cards is starting to wobble....
I've looked at most major stock markets in developed countries. They are all in extremely bearish formations imo. Some will crash worse than others for sure, but clearly this is not just about foreclosure problems in the USA. Problems within the whole system have been accumulating over the last century, and it is global. The commodity, currencies, bond, derivatives mkts are all intertwined. When one is unsettled then the effects ripple throughout the others very quickly.
When the Fed intervenes in one area to try to achieve what seems to be a positive goal, a negative effect is also created elsewhere in the system by these actions. There is no free lunch!
Citi reporting before the bell. Apple after the close. Tues is a big day for earnings, Bank of NY, B of A, Goldman all on Tues.
I'm looking for a triple top pattern. For sure we have seen the first top on Oct 13th. Friday morning's spike up could be the 2nd top, but the closer I look at it this weekend probably not. So we likely need to see 2 more tops and more time to complete my pattern. It will help greatly to narrow the timeframes once I see the trading the next few days.
SC