FOR THE FIRST TIME TODAY I HAD THE FEELING THAT WE MAY BE AT THE BEGINNING OF ...OR IN THE MIDST OF A GENUINE REVOLUTION...!
REVOLUTION BEING THE STATE OF AFFAIRS WHERE NOTHING WILL EVER BE THE SAME AS IT WAS...
AND NO.... I AM NOT IMPRESSED WITH THE 900 POINT RALLY IN THE DOW...IN ABOUT 7 1/2 "TRADING HOURS...." FROM 3PM FRIDAY TO 4PM TODAY...
IF ANYTHING THAT DEGREE OF VOLATILITY IS MORE REVOLUTIONARY THAT ANYTHING SO FAR... OVERSOLD MARKETS AND SHORT COVERING CAN ACCOUNT FOR MOST OF THE RALLY... WE'VE SEEN THIS BEFORE...IN SPADES...
BEWARE OF "FALSE DAWNS" BECAUSE THIS TYPE OF CRISIS PRODUCES A LOT OF THEM...! THE 70'S ARE ONLY THE MOST RECENT EXAMPLE...
THE REALLY REVOLUTIONARY ASPECT IS THAT NO ONE SEEMS TO HAVE AN ANSWER TO THE QUESTION: "WHAT NEXT...?"
THE US ECONOMY IS A MACROECONOMIC BASKET CASE...YET IT IS STILL FUNCTIONING... ALMOST LIKE A PLANE THAT HAS LOST ALL OF IT'S ENGINES...BUT STILL FLYS... FOR A WHILE...
SO FAR WE ARE JUST TREATING THE SYMPTOMS... BUT AT SOME POINT THE "PAIN PILLS" WILL NOT WORK...BECAUSE A "BAILOUT-A-DAY" IS NOT A STRATEGY ...IT'S A TACTIC...AND A LOSING TACTIC AT THAT...
SOONER OR LATER, SOME MAJOR REORGANIZATION WILL BE NEEDED... BECAUSE THE CANCER OF GREED AND FREE TRADE, DEBT AND DEFICITS IS DEEP INSIDE THE SYSTEM...
AND ONLY MAJOR SURGERY WILL GET IT OUT...
RALLY ON...BUT I'LL STAY IN CASH AND GOLD...FOR THE DURATION.
SOON, THIS CRISIS WILL METASTASIZE INTO --NOT ONLY THE REAL ECONOMY--BUT THE SOCIETY AND CULTURE ITSELF...
THIS IS MUCH MUCH DEEPER THAN ANYONE CAN IMAGINE RIGHT NOW...
IF NOTHING ELSE HAPPENED...THIS CRISIS YEAR OF 2008 WOULD BE HISTORIC...
BUT THERE IS A LOT MORE TO COME...
I SENSE THAT WE HAVE NOT EVEN SCRATCHED THE SURFACE...
