It is so obvious…to me anyway…that the stock market is experiencing a huge bubble. Like myself and a lot of others predicted when the NASDAQ and DOW were bubbling a few years ago, history seems to be repeating itself. Be warned. Get out. Think about the facts, as I mentioned in my current Gold Eagle column. (click on “archives” to see a couple of hundred I have written.) The housing industry is going down, as is the auto industry. These two industries alone, comprise perhaps 35% of America’s jobs. Also consider the makeup of the Dow industrials. There are but 30 corporations out of thousands on the DOW. Of the 30 in the Dow, 23 of them are in no way doing well as far as profits or stock prices are concerned. (Check out a piece on goldseek.com) Private equity funds and hedge funds can blow markets away without even a hint as to what’s going on behind closed doors. Even Wal Mart is struggling and trying every single promotion it can think of to bring grosses back where they were. Everywhere, homes are for sale and none are selling. Auto lots, both new and used are crammed full, just hoping for a buyer or two. This is the real America that is hurting, not the joy boys on Wall Street. Wall Street is probably just as corrupt as the D.C. Gang. On the web site “The Big Picture” are quoted some of the quotes by important and expert people at the peak of the 1929 debacle. They all said the bubble would never burst, prices would go up forever, and all sorts of babbling to try to keep the bubble from bursting. It didn’t work and the market had its way, just like it will again soon…in my opinion anyway. Stocks going up, is in direct contradiction to the unemployment which is increasing as well as the record number of foreclosures and bankruptcies. Home Depot has close to 4% decrease in profits in the last quarter, and home builders by the thousands are sitting on spec homes that are not selling. Want to do something with stocks? Short them, and have a great weekend.
