This could get really ugly

+ scenario: double bottom and we bounce back up slowly
- scenario: we fall through 7300/7500 and we crash down to 4000 in no time










Dow overview
June 25
August 15
October 13

On National TV, bond expert of CNBC, ANARCHY

"'The government is promoting bad behavior. Do we really want to subsidize the losers' mortgages. This is America! How many of you people want to pay for your neighbor's mortgage? President Obama are you listening? How about we all stop paying our mortgage! It's a moral hazard!!!"

7.5 ounces of gold buy 1 share of the DOW

All that glitters is gold.

The foreclosure plan

Obama’s example of a family that would benefit from his plan was one that had searched for a good home, secured a fixed-rate mortgage at a reasonable rate, made a down payment and made their mortgage payments each month.

Well, that is probably a whole whopping 3% of all homebuyers of the last 5 years...

Obama's plan could offer relief for Maricopa foreclosures

Grand Canyon Las Vegas Trip 2 / 2

We partied at Tryst

Checking in at the Wynn, we asked for a transfer to the Encore which is an all suite hotel.

Fancy, fancy, fancy!

Las Vegas - Phoenix 418 miles. We drove it in a little bit more than 5h30.

Here comes the capitulation phase

Republican senator Kanjorski:(+/- 2:10)
Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th [2008 -- that would actually have been the evening of 18th-19th].

Here’s the facts, and we don’t even talk about these things. On Thursday [that would have been September 18, 2008], at about 11 O’clock in the morning, the Federal Reserve noticed a tremendous draw-down of … money market accounts in the United States. To the tune of $550 billion was being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $105 billion in the system and quickly realized that they could not stem the tide.

We were having an electronic run on the banks.

They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there. And that’s what actually happened.

If they had not done that, their estimation was that by 2 o’clock that afternoon [Sept 18, 2008] $5.5 trillion would have been drawn out of the money market system of the United States — would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

Now we talked at that time [Sept 18th-19th?] about what would happen if that happened. It would have been the end of our economic system and our political system as we know it. And that’s why, when they made the point we’ve got to act and do things quickly we did.

If the DOW Jones drops below 7500

we will have DOW 4000 and food riots soon.
10 year chart Dow Jones

So who is going to give "Julio" a "real" job?

Grand Canyon Las Vegas Trip (1 / 2)

We saw the Grand Canyon in the sun, in the fog ... and now in the snow.

A must see, pictures don't do the magnitude of the Grand Canyon justice.

Having fun in the 3rd row of the car.

Hoover Dam, an incredible construction site.

This is 1/4th of a bridge over the Colorado...

We waited 2 hours for the "All you can eat-Brunch-Buffett" at the 5* Wynn.

$30 per person

The buffett:

Pastries.

(fake) Champagne (all you can drink)

We stayed for about 2h30, then we tried to crawl back to the room

D-e-p-r-e-s-s-i-o-n

California Housing Market

Meet 13 year-old Alfie

One big happy family.

The Big 3 ... cartoonversion

One of the best features of our car is

satellite radio: Sirius/XMradio.

Digital radio in HD quality without commercials. They have some excellent "live" shows,i.e. Tiesto show.

Too bad for us that they are going bankrupt and will file for chapter 11 Tuesday.

No bailout for Sirius/XMradio, maybe if they would take the name "Sirius Bank" the corrupt government would give them a few billion and they would survive.
No such luck ...in a centrally planned economy it's the government that decides who survives...and who fails.

World Press Photo of the YEAR

LINK

We have some friends over

so we'll be visiting the Grand Canyon and Las Vegas.
We'll be staying at the very fancy 5* (top 100 hotels in the world)the Wynn.
A depression has its advantages.

"Don't insult our intelligence"

The politicians have just lost their minds

Amazing, a bill of 800 billion dollars.


The only thing they cut from the original bill was of course the "public educational" part of it. So trillions of dollars for bonuses for bankers, and peanuts for education. Looks like the policies of a corrupt 3rd world country.


It all started with the 200 billion stimulus of the incompetent Bush (tax credit checks) a year ago. These stimuli are never going to end. When do they plan on adding the next "stimulus bill"? Will it top 2 trillion dollars? And the next one, 5 trillion dollars? And, then 10 trillion?

So with this bill the government wants to create 3 million jobs... Are you kidding me, they are going to create 3 million in the public sector(or private companies that do all the unnecessary construction work) and destroy 10 million in the private sector in the meantime. It is not the task of the government to "create" jobs, they should create an environment where the private sector creates jobs.



The USA is now officially a centrally planned economy, in which the governments regulates and controls everything.

The dollar will soon be worthless, we'll all be $$$ billionaires and gold will rise 30+% a year for the foreseeable future.

How to handle the crisis and punish the bank-crooks

China gives the example how these crooks/fraudsters/parias should be punished:
A Chinese court has handed a death sentence to Li Peiying, a former chairman of Capital Airports Holding Co., for bribery and embezzlement

Former chairman of Chinese company sentenced to death:report

Quote of the day

"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system.

"High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people."

-US Sec. of the Treasury Andrew Mellon, 1929

Mummy through the eyes of a scanner

Incredible invention by the University of Chicago
LINK
Now we have "Superman" eyes, is time travel next?