[Roy]

I also have a bad feeling. Honestly though, that feeling's been hanging around since I joined this site! It just comes in different intensity levels based on current events.

Seems like it may be a good time to get some cash out of the bank and put somewhere secure, ie into something tangible, or at least 'under the mattress' where it will be safe from any sort of banking crisis or run. In a deflationary environment, cash is king.

I like Jdumars' prediction as well. I don't think this is IT, just yet. Human greed being the only infinite resource on the planet, I think, like Jack said, many investors will see last week's correction as a buying opportunity and the show will go on for a little while longer.

Honestly, for my own selfish reasons, I'd like a few more years. There is so much to learn and do. Besides, I like electricity, gasoline, and a notable lack of MZBs.

Cheers.

[evilgenius]

Oh, Zardoz, think of it this way. When the third world can no longer afford to compete in the energy markets that means that the only players left all have more disposable income. Suppliers will no longer have remainders left over that they need to dump, so no more easy deals. The wind becomes a whirlwind because the only bidders left can afford to pay so much more. That is, after all, what happens in a truly global market place. The only way out is through demand destruction. The American economy has to take a hit. Private equity is ready, the mergers are over. The middle class is going to ride this one all the way to, what does Kunstler say, 6000, 4000, something like that. This time might just be a shot across the bow, but how long before it isn't?

[Twilight]

Inflation, deflation, it's impossible to call, so I am not committing myself to anything. Let the hedge clippings fall where they may, in their own time. I think the worst place to be right now is in the market and trying to second-guess it in real time. Especially in the US where people have a broker on speed-dial, losing money with every movement. I'll just sit back with popcorn and see what happens.

[mmasters]

It's amazing how much capital the great housing bailout is injecting, so much so it's really stimulating economic activity (though there will be a downside to that). I wouldn't be surprised to see 30% inflation knocking on our door a year from now.

I think things will stabilize for the moment and probably recover. Expect lots of shiny happy economic reports next week to cheerlead a stabilization. Nonetheless it could get choppy again quite easily.

And I know I've been saying it for a while but it seems we're well overdue for a *distraction*

[TITAN]

Like all pyramid schemes, eventually the world economy has to break.

It's inevitable.

I just hope it happens after around Sept. 15th...

[vision-master]

Things haven't been better around here.

[Tanada]

$this->bbcode_second_pass_quote('vision-master', 'T')hings haven't been better around here.

[I_Like_Plants]

Ahh yes, tomorrow is Monday, and the stock market opens again.

Interesting feeling heading for the boonies while this is going on. At least we have game and acorns and stuff.

Picked me up a little shortwave radio at Radio Shack today, little pocket sized Grundig something 100, not the ne plus ultra of shortwave radios but better for the shorwave bands than my Grundig FR200 which I love for AM DX'ing. Mainly I got this new one to keep up my morse code copying skills, the other one lacks a BFO so I can't get any but the strongest CW signals.

But it could be useful for listening to overseas broadcasts, BBC, etc if the US economy is really melting down. They may have insights our own media won't air.

[firestarter]

This doesn't help matters at all:

$this->bbcode_second_pass_quote('', '[')b]LONDON (Reuters) - Dutch bank ABN AMRO is likely to drop its formal recommendation for suitor Barclays' 65.6 billion euro ($89.6 billion) takeover offer on Monday, sources familiar with the situation said on Sunday.

[Evltre]

It's next week already here, and today's headline is a classic:

Down, down, down - global sharemarkets all sliding

But in reality the fall hasn't been so bad....so far anyway.

[Eli]

I am going to change my vote, I think Monday will be bad.

I do not think that it is going to be an ultimate sell off. I think that the trading curbs that were put in place may be engaged again.

There is plenty of bad news over the weekend and buyout deals are disappearing all the time. I thought the subprime thing was contained, I guess someone forgot to tell the lbo guys.

It will be interesting, I wonder how the market curbs are going to play into this all? If they keep putting them up it may end hurting more, like day after day the dow dropping 300-400 but not being allowed to fall as far as it would have. Eventually everyone realizes that this is it and they start trying to sell their 401k's and the panic is prolonged. People start asking what day did you sell?

[eastbay]

DJI and S & P futures are both nicely positive indicating a probable higher open Monday morning. Oil is down slightly offing more positive news.

The ultimate diagnosis may be grim long-term, but recent reports of the death of the world economy are indeed quite premature.

I have a very good feeling about this week!

[Roccland]

This comment was posted here

$this->bbcode_second_pass_quote('', 'S')hanghai currently at 4419. If this continues, the index may close at an all-time high. This makes sense, as the inverse relationship between the Shanghai and US markets has established itself consistently. BTW, this does not necessarily bode well for tomorrow's action in the US.

http://finance.yahoo.com/q?s=000001.SS

I like Bernard Ber's piece describing in detail the inverse relationship between the Shanghai and US markets and how the only way China can avoid a full melt-up is by decoupling with the dollar (US treasuries and MBS.) In other words, the slower the US gets, the hotter China gets and the solution is much higher rates for the US, whether or not BB and HP want it:

http://www.silverbearcafe.com/private/toomuch.html

Even more fascinating is Ber's parallels between 2007 and 1929, where China is playing the role of the US, and the the US is playing the role of the UK.

[Sasquatch]

I have absolutely no idea what will happen this week.

But I feel pretty good about the fact that I liquidated all my stock two weeks ago. It had nothing to do with some market instability prediction on my part - just coincidence.

My best friend is, or was, a fairly gifted financial planner. He liquidated all of his assets two months ago and sold his company (or rather, sold the company, then liquidated everything).

I introduced him to the concept of PO about a week ago - which I hadn't done sooner because I thought he'd think I was crazy.

Now we're talking about pooling our resources, buying some land for sustainable off-the-grid farming, and calling it a day.

It's amazing what a few weeks can do.

[ohanian]

Honey, I lost six percent in SIX days!

I really do have a yen for it!

Yours unfaithfully
Yen Carry Trader


[web]http://www.ozforex.com.au/cgi-bin/chartsFast.asp?ccypair=AUDJPY&period=Hour[/web]

[evilgenius]

Well, Asia is not following suit. That does, however, make sense if you consider the amount of capital that will be flowing into Asia today and tomorrow to cover the yen borrowing that has gone on. If you are looking to Asia to collapse and not seeing it go, phew, you could be mistaken. Watch the value of the yen. As the carry traders climb in they will greatly increase demand for the yen. At some point the yen's value will get too high and only those that are cutting losses or have to make margin calls and such will keep at it. Where will the rest of the money go until it can wait out the yen cycle for another chance to either dump or pump?

[MacG]

Market predictions? I've given up that sport since many years. Markets are just to irrational, and probably manipulated. Suspect it's more of "Siegfried & Roy" than logic over the whole thing.

Even powerful actors with access to trap doors, smoke and mirrors get chewed up by tigers from time to time though, but I think it's impossible for a mere mortal to predict when it's going to happen.