Jul 28 2007
Worst Week for U.S. Equities in 5 Years
Indeed, that’s the headline being run all over the news. Is this, finally, the recalibrating correction many have waited for so long?
Certainly the media has woken up to the symptoms, but do they or the mainstream market fully understand the problem? Let’s take a look at the AP Oil Headline: Oil Near All-Time High Over $77. Ok…. And the byline? “Oil Settles Over $77, Near All-Time High, on Technical Buying and Economic Data.”
Yes, technical buying drives short term moves. A supposedly growing economy does to. You might as well throw in instability in key oil producing countries: Nigeria is dealing with rebel attacks on its infrastructure. Hugo Chavez is ruining Venezuela’s.
But all that aside, once again, not a word about what’s been going on with money supply or the vast ability of expanding credit to drive up asset prices across the board.
Here are a few other headlines showing the current momentum.
- Bear Stearns seizes troubled hedge fund’s assets
- Banks burnt by credit meltdown
- Bond Risk Soars by Record as Investors Flee Corporate Debt
- Financial crisis just one ‘Bear-like’ event away: Economist
- Cadbury Schweppes halts sale of beverages arm
- Global Markets Tumble as Credit Worries Deepen
- Dollar Rebounds From Record Low Versus Euro on Risk Aversion
