micrOdOts.org / ramblings [of the ABsurd]

A Debt issuance cycle shares many characteristics with the Ponzi scheme now in the news with the Madoff fraud. When total Debt is growing it stimulates the economy with new cash flows which helps with the payments on previous debt ...

The great depression, which has come to be known as the mother of all financial disasters lasted from 1930-1939, and the Dow shed almost 90% of its value; from a high of 381.17, it dropped as low as 41.22 before putting in a bottom. By 1934 it had ...

Gold, silver, copper, and other commodity and energy stocks are beginning to show strong chart patterns, and some have broken out of potentially powerful formations. Here are a few stocks mentioned in the last two market reports.

Unfortunately, while I am exactly like the Federal Reserve in that we are both total, complete failures at our jobs, mostly through sheer stupidity, the repercussions are quite different.

Investors who were on the wrong side of the market got pretty beat up in the past few months. The worse the beating, the longer it takes someone to regain trust and confidence. While many investors are looking at the VIX for signs that fear levels are ...

I expect the bond market to begin a topping process, which will include consolidating at these higher levels and build a topping pattern. During this process, I expect to see smaller highs, which will exhaust this move up as part of the topping process.

It should be note a significant sentiment change associated with the broad stock market occurred post options expiry on December 19th that has confirmed Treasury bond selling is asset allocation derived, aided by the bubble dynamics that ...

Right now we have a situation that reflects the '30's and the Japanese 90's - 2006 were nominal rates are at zero and money supply is being increased at a massive rate. Why are the Fed following such a policy if we know there are inherent ...

The Era of Simple Solutions continues to unfold. For every complex problem, as the wise man once said, there is a simple solution, that is wrong. Into the abyss of collapsing financial institutions rode the Federal Reserve, with a check book in each hand.

The year 2008 will be written about in finance textbooks for generations to come. The inevitable collapse of the boom, built single-headedly on credit, finally came home to roast. Ironically, further liquidity is what has, thus far, ensured the ...

Bullish divergence has been present throughout the bottoming process in our often watched 'panel' indicators like MACD and RSI. You name a major global market... Europe, Japan, they are all following some version of the bottoming scenario.

Those ever optimistic economists are forever predicting stock market recoveries, housing recoveries, job recoveries and consumer confidence recoveries, all of which set unrealistically high expectations and glimmers of hope that won't pan out.

It is not possible to predict what timeframe it takes for market participants to realize it's not just the US dollar that is trash, but rather every fiat currency on the planet. That realization is a process, not an event that can be timed.

Unwilling to let the free market work, U.S. policymakers have adopted the audacious goal of trying to kick-start a deeply flawed financial system; a system grounded upon unsustainable increases in asset prices and debt.

We remain in Buy Mode, looking for the markets to continue higher into 1/20. We do expect weakness in the short term and for the markets to build energy to finish the rally ... Panic Rally? You Bet!

The following paper is the second installment of the three part series: Is America Broke . The first article discussed the main issues of the financial crisis. It was suggested that the root cause of the systemic failure is the monetary system itself ...

WHAT on earth...?

Politicians are trying to inject confidence into markets by bailing out certain institutions, industries and/or groups. Instead bailouts are having the opposite effect, dividing the country into bailout recipients versus everyone else.

We do have our work cut out for us, but that has never stopped us before. Over $30 trillion in market valuation (50%) has been wiped out during the past year. This is a large blow, but one that can be handled if it is dealt with in the proper manner.

We were also going to take another week off before returning but couldn't resist the temptation of sitting down at the computer and viewing the carnage of 2008 once again. As well just thinking about it more gives greater insight as to what ...