by Reb Akiva at Mystical Paths
The financial crisis that the US, and now other Western nations, are undergoing has been a long time in coming. Unbalanced excesses of the past have to be paid for, the extremes worked out of the system before it comes to a new balance.
The US and Western Europe have been torturing Israel for some time now. The more they work for "peace", the more Jews (innocent civilians) die. Oh, and the more Palestinians that die too!
As they have continue to work for a peace process that results only in more death and pain (about which they are motived only for their economic ties with radical Arab countries), they are hit with increasing numbers of natural disasters, and the financial imbalance grew and grew. While it's been collapsing for some time, the true size of the crash, the full impact, has yet to be felt...
It's about to be. Several tzaddikim have come out in the past week and provided some financial instructions to their talmidim. Things are going to briefly appear to settle, it's momentarily going to look like the crisis is past. Markets will soar, and the US dollar will regain it's strength.
But this will be an illusion (in US market terms, a dead cat bounce). By Hoshana Rabbah this year, it will all unravel and the true impact of the financial crisis will be apparent. Markets will fall to record lows, as will the US dollar.
Their instructions to their talmidim are: bail on the summer bubble. They don't appear to be the only ones talking this way...
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyzes the major central banks.
"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.
A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.
Such a slide on world bourses would amount to one of the worst bear markets over the last century.
"Cash is the key safe haven..." [Mystical Paths disagrees, with currency values fluctuating as much as 50%, cash is NOT a safe haven, commodities in hand are.] said Mr Janjuah, who became a City star after his grim warnings last year about the credit crisis proved all too accurate.
RBS expects Wall Street to rally a little further into early July before short-lived momentum from America's fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage.
Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve: The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned.
"We see striking similarities between the transatlantic tensions that built up in the early 1990s and those that are accumulating again today. The outcome of the 1992 deadlock was a major currency crisis and a recession in Europe," said a report by Morgan Stanley's European experts.
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Sunday, June 22, 2008
// 6/22/2008 //