QE3 Hi Caffee,
Great to hear from you! Hope you doing OK!
Have to jump on your bandwagon here and especially when it comes to your closing statement.
For all who not figured it out yet, take a look at for instance the DOW Jones before the 2008 crisis and where we at now. Before the crash, DOW at 13080, now already back again above 13000.
And all of that in 3 years time like nothing has happened.
Look investors....Dow again above 13000, credit crisis over, nothing to see here...move along :-)
The fact it is already back above 13000 should send warning signals to the more astute investors and will send a false signal of 'everything OK' to the more novice traders.
Fact of the matter is, everything is most definitely not OK and we are looking at a whipped up and beat up market with no real money backing it.
Without a QE3 or some other form of keeping this current manipulation alive this house of cards will soon all be crumbling down again.
Only thing you as investor have to look at is Gold. Nothing else. Just look at chart of gold. As long as that is still moving in a straight line upwards (as it is still doing by the way), then we are nowhere NEAR the end of this crisis. Don't let anything else fool or cloud your judgements.
Only leverage they still have to supress the unrelenting march of gold is the now and then perfectly timed appearance of Helicopter Ben telling us there will be no QE3 while secretly printing loads of cash behind our backs and injecting it in an already failing system under a different name or using a different scheme.
So, who do we turn to for guidance in these times as a means of not letting ourselves be fooled again?
CORRECT....we look at history. (source : investopedia)
The most well-known market crash in the U.S. is the stock market crash of 1929. Many investors were wiped out almost overnight, and news reports told of bankrupt stockbrokers leaping from the roofs of buildings. Ultimately, the market would fall 89% from its highs and would not fully recover for more than 20 years.
Mindset of people at that time :
Since the stock market was believed to be a no-risk, no-brain world where everything went up, many people poured all their savings into it without learning about the system or the underlying companies. With the flood of uneducated investors, the market was ripe for some manipulation and swindling. Investment bankers, brokers, traders, and sometimes owners banded together to manipulate stock prices and get out with gains. They did this by subtly acquiring large chunks of stock between them and trading them between each other for slightly more each time. When the public noticed the progression of price on the ticker tape, everyone would buy the stock. So, the market manipulators would then sell off their overpriced shares for a healthy profit. On and on the cycle went as uneducated investors turned a profit by selling the manipulated, over-priced shares to someone who wanted to have a rising stock.
The Asian Crisis
When: 1989 - Ongoing
Between 1955 and 1990, land prices in Japan appreciated by 70 times and stocks increased 100 times over. Trading became the national sport, and the Japanese jumped into the market with more blind confidence than that of the Americans of the 1920s. During the eighties, large Tokyo firms were worth more individually than all their American counterparts combined, and Japanese golf courses were worth more than the value of all the stocks on the Australian exchange
I use these two big crisises as example cause they have the most similarities with our current crisis. The 1929 lasted 20 years, the Asian crisis is still ongoing.
Nuff said I think....
Cheers,
YeOld