U.S stock market falling accelerated, crashing is near.

This can become a self-fulfilling event. The more it drops, the more that get out which is why markets usually over correct before they become rational again and rational doesn’t necessarily mean rally.

When the Dow was at 12,000 CNN and CNBC’s taling heads recommended to stay invested and continue to invest in equities.

When the Dow dropped to 11,000 the same talking heads recommended to stay invested and continue to invest in equities.

When the Dow droped to 10,000 the talking head recommended to stay invested and continue to invest in equities.

Now that the Dow is at 8,600 or so… I wonder what the talking heads will say…

Their recommendations led inexperienced investors to incur losses of over 25%…

1. US has about 1 Trillion in cash, it has about 14 Trillion in Liquid Assets, and it has about 144 Trillion in Cash, Liquid Assets, and ‘off balance sheet’ accounts. In addition capital assets, equipment, land and buildings should value at about 700 Trillion (give or take)

2. Total US Registered Assets represent about 860 Trillion - give or take.

3. The currency exchange rate has moved 25% in the last few years EUR/USD 1.20 to 1.60 (although it now has gone back down to around 1.35 after the banking fiasco)

4. This means that theoretically 860 Trillion in US based/registered assets valued in US currency results in value loss of 214 Trillion Dollars to the Euro.

5. How do you move 5 Trillion dollars around the globe overnight? Agains, we only have 14 Trillion in Liquid Assets on every balance sheet in the US.

6. The margins at which the currency is traded and the volume implies serious naked shorting on every currency.

Everything is happening now is indicating a word=depression

Did you like this? If so, please bookmark it,

$\\$