Recovery? How About 'Relapse'?
by Gerald Celente
With private sector jobs being lost, incomes declining and tax bases shrinking, the increases in government spending were both unsustainable and destructive. More was being spent by the government than earned by the private sector. Not only were taxes not covering expenses, impoverished states with insufficient cash on hand to meet obligations were holding back tax refund checks!
Note: Who, other than government, could pull off such a stunt – issuing IOUs to be paid when convenient? Taxpayers and borrowers who are unable to meet their obligations lose houses, have paychecks garnished and assets seized. Students, saddled with massive loans (often $100,000 or more), earning meager wages or unemployed – and prevented from declaring bankruptcy by the prolender federal law – become indentured servants. FULL STORY
The Bond Market Is Signaling Trouble Ahead
MONEY AND MARKETS
by Claus Vogt 08-18-10
The Stock Market Is on the Verge of a Break Down
The most likely scenario now is a breakout below the lower boundaries of this topping formation — below the 1,010 level the S&P 500 reached on July 1. Such a move would definitely make clear that April’s high was THE high for the huge bear market rally that started in March 2009.
The Bond Market Confirms This Bearish View
Both the bond market and the stock market are to some degree leading indicators. But the bond market is said to be the smarter one because bond traders are generally more vigilant in looking for trends in the economy.
Already the bond market is conveying an important economic message … FULL STORY