Example to next stock market crash

[DavyRocket]

This might give a good indication to the next stock market crash which will be the big one? Pay close attention to the graph.



If this video is correct... We do not have much time left.

 

[Loomis]

To me that's too simplistic. Last Thursday we saw the market drop quite a bit, in the range of 2% loss. That could have been profit taking although the talking heads were saying that Benny B. spooked the market by announcing that Government milk money would dry up by the end of the year. Yet did anyone notice that anyone holding June 21st Calls were selling also. If they weren't covered Calls it meant they were going swiming. If they held onto those Calls until Friday and they weren't covered, it means there brokers are selling stock in the clients portfolio to make up the difference that they owed.
It could have been profit taking by big institutions selling large blocks of stock, only to buy back in when the prices dropped. Also on Thursday, not only Equity was down so were Bonds, as well as Gold and Silver prices also dropped. Now it is a fact that the Government currently has a lot of M1 (currency) out there. Although they don't go by that (M1) anymore. That is great for a Government because they will pay off there bills. It's not good for the consumer who watches prices rise and the value of the dollar drops.
The problem I see is the effect of high speed trading. The other day I put thru a Buy order with my online broker. I did a Market Order. It executed immediately, less than one second I had a Trade Conformation, and the shares were credited to my account. This is split second trading. High speed trading is a lot more complicated than I just described, especially for large hedge fund managers who put thru mega orders, both buys and sells, in less than a fraction of a second.
My father worked on Wall Street during the Crash of 29. He told me what happed in those days. I worked on Wall Street and survied the ression of 72 and 08. I can't say what is going to happen, all I can say is fasten your seat belts it's going to be a wild ride.

Correction: I was not working on Wall Steet in 08.

 

[Loomis]

If we look for parallels between the Crash of 29 and today, here is a story my father told me. It became known as the Wall Street Blast. It took place in Sept 1929 when someone pulled up in a horse & wagon and detonated a bomb.
http://en.wikipedia.org/wiki/Wall_Street_bombing
My father had just came out the door at lunch time when it was off. He was a block away but said the glass came down like snow flakes. He got a piece of glass in his skull and was taken to the hospital. He told me that they believed it was the work of Bolsheviks. The following month the market crashed. The blast marks can still be seen today in the walls of the old J.P. Morgan building, and the sub treasury building.
The connection here would be the terrorist attacks on the US.

Another area that was true of the crash of 29 and today is that my father told me a lot of people were buying on margin. My mother in law bought on margin back in 29 and she lost everything.
Today people are doing the same thing; buying on margin.

 

[bill harrell]

Dangit...I been buying on margerine.....lol ...that's some interesting stuff there Loomis...

By the way... are you affiliated with the armored car business

 

[Loomis]

Dangit...I been buying on margerine.....lol ...that's some interesting stuff there Loomis...

By the way... are you affiliated with the armored car business

Hay Bill, fine looking dog you got there.
If i was affiliated with the armored car business you wouldn't see them parked in Handicap spots

But after the crash of 29 most business did not go out of business. Most laid off workers becasue as orders dried up. Some businesses did go out the rest that could not hold on were ate up by the bigger fish. Same as in 08. Many company mergers & buyouts. In the 30's orders for goods dried up, high unemployment and consumer spending stopped to a trickle. A stagnant economic picuture, and it stayed that way until the WPA was started and our entry of the war in Europe. However this created a large national debt. Later we came off the Gold standard, or the debasing of our currency and the printing of fiat money. This is not the first time debasing a currency ever happened http://en.wikipedia.org/wiki/Debasement .
Today companies are flush with money and cash only buyouts are an everyday occurance.
But for people like ourselves who live closer to the ground, Gold may not be the key when TSHTF. Who made more money? The miners looking for gold or the guys and girls selling him the pans.

 

[Loomis]

I'm not a financial guru so this is just my opinion.
Last week I was supposed to have my electrician come over and do some work for me. I had to cancell due to that intestinal virus going around the country. Well yesterday he called on the phone to tell me the company he works for decided to close this branch office. He was out of a job. I've been dealing with this company for over 20 years. I think he was still in shock when he told me. But what's going on here, lets look further.
Yesterday UPS announces they will not include "working spouses" in there healthcare plan. Wells Fargo lets go 2,300 people. An electrical company all of a sudden decides to close up shop in this town. Then it hit me. The Affordable Healthcare Act. What's that's going to do is create more unemployed and part time workers. People with less money to spend and pay there bills. Now with lower sales in the stores investors get nervous and start to sell. Big institutional investors start to dump investments, market drops, mon & pop investors panic and sell. It's starting to look that way. People aren't panic selling yet, but they will once they realize what is going on. When I start reading an article entitled "The Rats Are Jumping Ship" I start to think we may not be too far away from a free fall.
The media was blamed for the Crash of 29, and eveybody else, but it was the Panic Selling that took it to the bottom.
Am I selling? No. I'll hold on and buy when it hits bottom.
Just my opinion.