http://www.getreallist.com/surviving-the-financial-tsunami.html Deal With Reality or It Will Deal With You Mon, 02 Jan 2012 04:09:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.getreallist.com/surviving-the-financial-tsunami.html/comment-page-1#comment-67 Jack Enright Sun, 28 Sep 2008 09:42:15 +0000 http://biz40.inmotionhosting.com/~getrea6/?p=744#comment-67 The coal shares ACI and BTU rose to parabolic highs. When parabolic highs turn around, the shares fall as fast as they rose. That is what happened with ACI and BTU. ANR formed a plateau, trading between roughly 90 to 105 but then also fell in sympathy with ACI and BTU. BTU and ANR have excessive price - earnings ratios: BTU @ 36.8 X and ANR @ 33.7 X. Something is very wrong in China. There is quite a lack of news from China, but China does not seem to be buying copper from BHP and Freeport McMoRan. Meanwhile, the Baltic shipping index seems to be falling as if nothing is being shipped out of China. Before the Olympics, rumors were in The Street that China was going to withdraw its funds from the U.S. right after the Para-Olympics. Looks as if China did not have to. The U.S. economy is falling of its own accord for lack of credit not only in Wall Street but also in Main Street. Many employers cannot borrow short term to meet payrolls. Pilgrims Pride chicken has disappeared from our local grocers' shelves. I went to KFC Friday afternoon for my last chicken dinner before the supply dries up or prices soar. The public opposes a Wall Street "bailout" but Main Street will be devastated if the Treasury cannot provide liquidity to buy up defaulted mortgages. Employers who borrow short term will fail to meet payrolls unless Treasury gets its money. Investors may not have funds to meet margin calls from strapped brokers who have been using short term credit to lend on margin to investors. Anything less than the $700 billion would show weakness of purpose and hit the global banking system. I have liquidated many of my non-oil and gas shares and am moving the raised funds into Japan and Australia index funds for the nonce. The coal shares ACI and BTU rose to parabolic highs. When parabolic highs turn around, the shares fall as fast as they rose. That is what happened with ACI and BTU. ANR formed a plateau, trading between roughly 90 to 105 but then also fell in sympathy with ACI and BTU. BTU and ANR have excessive price – earnings ratios: BTU @ 36.8 X and ANR @ 33.7 X. Something is very wrong in China. There is quite a lack of news from China, but China does not seem to be buying copper from BHP and Freeport McMoRan. Meanwhile, the Baltic shipping index seems to be falling as if nothing is being shipped out of China. Before the Olympics, rumors were in The Street that China was going to withdraw its funds from the U.S. right after the Para-Olympics. Looks as if China did not have to. The U.S. economy is falling of its own accord for lack of credit not only in Wall Street but also in Main Street. Many employers cannot borrow short term to meet payrolls. Pilgrims Pride chicken has disappeared from our local grocers’ shelves. I went to KFC Friday afternoon for my last chicken dinner before the supply dries up or prices soar. The public opposes a Wall Street “bailout” but Main Street will be devastated if the Treasury cannot provide liquidity to buy up defaulted mortgages. Employers who borrow short term will fail to meet payrolls unless Treasury gets its money. Investors may not have funds to meet margin calls from strapped brokers who have been using short term credit to lend on margin to investors. Anything less than the $700 billion would show weakness of purpose and hit the global banking system. I have liquidated many of my non-oil and gas shares and am moving the raised funds into Japan and Australia index funds for the nonce.

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