monday trading, page-123

Mike Shedlock has warned of Citi for a long time and seems to be picking them well.

http://globaleconomicanalysis.blogspot.com/

The question is whether this latest 'intervention' by government will be seen as a positive or negative on the street.

It certainly raises disturbing questions about the entire banking sector. The banks interesting accounting on their balance sheets only adds fire to fuel.

Is Goldman Sachs the next one or JP?

The web of inter bank connections and lending will flow through to banks world wide.

One of the 4 pillars is in trouble in my view. Should this be the case, the government will quickly step in and take greater control of our banking system.

I think one of the dynamics of credit markets is an inevitable collapse. Each time the big bear comes to eat, the government will take greater control of the private sector. Unfortunately for the governments each time it happens it costs a great deal more.

1987 cost the US government $140 - $170BIL. Today so far almost $4 Trillion! Next time? What will happen to the US dollar? It will stay strong as long as equity markets are weak. Once the deflation stops, the risk of 2012/2013 could be hyper - inflation as investors flea from the US-dollar to commodities, gold could be $2000 an ounce and Oil $300 barrel. However, the US dollar could halve so owning a car would become almost unaffordable for the average person.

The Mayans/Sumerians/Egyptians/Nostradamus and many modern scientists foresee a great change is coming around 2012. A topic that is gathering more credence with today's scientists is the possibility of a polar shift which would bring on an ice age. Sound crazy? I thought so!

http://www.youtube.com/watch?v=2ahoPGzL50Q

The next 5 years are likely to be challenging.

Having made such comments, I am sure to be ridiculed by the optimists. I use to have horns but I traded them in for a bear suit and it fits real well.