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International Forecaster March 2008 (#4) - Gold, Silver, Economy + More

By: Bob Chapman, The International Forecaster

-- Posted Monday, 24 March 2008 | Digg This Article | Source: GoldSeek.com

The following are some snippets from the most recent issue of the International Forecaster. For the full 18 page issue, please see subscription information below.

US MARKETS

This past Thursday, the Fed, the “Working Group on Financial Markets”, politicians and street stooges created a 420-point rally after historic Fed intervention; similar to what they did the previous week. That rally was unwound and this one will be too. It will implode again. Now that the Fed has spent $230 billion this month, they probably only have $400 billion left to throw around before they raise more capital or create more inflationary credit. We have had eight months of Fed intervention and the credit crisis is worse than ever.

Lehman Bros’ earnings came this week and they used an accounting gimmick to produce earnings. A $600 million gain on an accounting rule that allows it to book a gain on the declining value of credit – a gain from conceptually being short your own debt.



As this transpired ABX HE-AAA has declined to new lows. This is due to the disconnect between credit markets and the stock market.



JP Morgan Chase, with the Fed’s $30 billion, is acting as the savior of Wall Street. It should interest you to know that their 9/30/07 OCC Repot shows JP Morgan increased their derivative book 14.6% to $91.734 trillion from $80 trillion. Citigroup is number 2 with $34 trillion.

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