yanks have lost it, page-11

88 Year Chart of Dow Jones Industrials



Short term rates spike downwards one last time as the Federal Reserve moves to use up the last silver bullet in it arsenal of weapons.

This downward spike could be short lived, and a credit crunch might manifest despite the Fed’s efforts. The market might take a “stuff-you” attitude (or panic), and short dated yields might spike upwards very soon thereafter.

1 and 2 above could cause the parabolic trends of the ratios in the first three charts to collapse – which would be consistent with historical experience of parabolic rises within biological systems.

Velocity of money would contract savagely if a credit crunch manifested that was beyond the Fed’s ability to control.

This would cause the US economy to tank – thereby causing mayhem in international markets

The Dow Jones Industrials Index would break below the support of line A-B and might stop anywhere between 8000 and 4000.

The parabolic trends of the commodities charts might collapse as the wheels come off the world economy and the debt mountains implode.

http://www.financialsense.com/fsu/editorials/bloom/2008/0317.html