Five reasons why the market may crash this Fall!

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investorzzo's picture
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Five reasons why the market may crash this Fall!

1) High Frequency Trading Programs account for 70% of market volume

2) Even counting HFTP volume, market volume has contracted the most since 1989

3) This Latest Market Rally is a Short-Squeeze and Nothing More

4) 13 Million Americans Exhaust Unemployment by 12/09

5) The $1 QUADRILLION Derivatives Time Bomb

Davos's picture
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Five reasons why the market may crash this Fall!
  •  Alt - A's and Option Arms 1.5 trillion dollar time bomb
  • CRE 3.5 Trillion dollar conservatively speaking
  • Banks - With 5 trillion in real estate coming they will have to adjust their capitol
  • Tax Revenues - With 5 trillion in real estate coming....
  • Currency Crisis: Deficit - monetising almost 1.5 trillion of debt that isn't being bought by borrowers (Of course a flight to (preceived) safety could kick this can down the road)
  • Currency Crisis: Systemic risk from former Soviet Block
  • Currency Crisis: BRIC's (Brazil, Russia, India, China) create a new basket of reserve currency
  • Good bad or indiferent, (as a plan) adding 1.6 trillion or .7 trillion or .9 trillion (my guess more than the three together) to pay for health care. We take in 2 trillion and spend 4 trillion now. I haven't seen cash flows so I can't say how much of the new plan could be deferrerd.
  • Good bad or indifferent, (as a plan) Cap and Trade - another multi trillion dollar amount, a lot of which will be passed to the middle class in taxes, not to mention restrictions on re-tooling farm and other equipment

That is my list of 9. Not certain if it will be this fall or the coming spring/summer. Take care

DavidC's picture
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Re: Five reasons why the market may crash this Fall!

Davos, Shame you didn't just come up with 8. 8 plus 5 =! Or, perhaps another 661. 661 plus 5 = 666!



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