Posted from my iPhone.
Remember the movie with Jimmy Stewart and Lionel Barrymore? Lionel Barrymore playing Mr. Potter, the crafty old boy who owns the entire town. Keeping them under his thumb, charging outrageous rates for everything in sight. And Jimmy Stewart, the hero who ran a Savings and Loan, a credit union of sorts, to save the day?
Who will save the day in Europe?
It's loansharking at its best! A legal rip off of sorts. Price gouging that would be quickly curtailed by the authorities in other circumstances. Just like the spike in oil a few years ago, where traders played on the hysteria and drove prices through the roof, the same thing is happening in Europe. Although it is a bit different. When you're down and out and you can't get credit no one wants to loan you money. And people like "Mr. Potter" (AKA Lionel Barrymore) take advantage of that! As a result the bond yields are soaring in Europe, things are beginning to crack and if someone doesn't come and save the day, the effects will be worldwide.
I haven't looked at the charts in a few days. I've been out of town. But it seems fairly simple. The Dow is down big, and it looks like we could be headed for the $10,000 psychological level. I've talked before about the need to test this level again. Hold on your hats folks this is going to be a roller coaster ride
No changes in the trends, everything is DOWN. But somehow I think you knew that.
Enjoy the rest of your weekend.
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