Important Notice!
For some technical reason yesterday’s report suggesting the good news was fully priced and the rally over, was delayed til early this morning. So in a more up to date comment, and as we have previously said, it still gets much worse before it gets better, and the opportunities are getting bigger.
In one paragraph, here are the key aspects of what I believe you need to be constantly aware of and the first is the most powerful, Big Brother, be it the US or European governments CANNOT fix this! What has to happen is for markets to run their course and they should be allowed to do so as quickly as possible. Painful as it may be it will not be as bad as this to some degree Hank Paulson encouragement of there being a solve all package that got everyone the world over, too focused on one event. The point is, markets can work through and resolve current issues if allowed to. I suggest that if short selling had not been curtailed, those who were short would have been taking profits before now, and supporting the market. Instead those already established shorts became extremely valuable and have been held. Next point, this is clearly a panic with further to go. When truly stunned people grasp for the simplest idea and hang on for all they can. That idea which dominates business, investment circles, and personal financial decisions at the moment is, CASH, and preferably US cash for the reason that the US is considered the least likely country to ever default. The problem with that idea is, the US is the epicentre of the crisis.
