Stock Market Crash Second Leg, What’s Next in 2010?

By: Christopher_Laird

A lot of people realize that the world financial and commodity markets have rocketed around 60 pct since March 2009. Around the summer/fall people realized that the markets got ahead of the world economy, which is still terrible. Unemployment is still rising and one day this month there were US job losses of 50,000 announced. Hey if jobs are again going to tank (they are) then this gig of so called recovery is over.

I had told subscribers that we expected December retail sales to be dismal, and that US economic stats in early 2010 would highly disappoint.

Other measures of stock liquidity are also tanking, basically, the market is flat and is up but it’s peaking. Insider selling is high.

Significantly, China has started a money tightening regime, first with higher bank reserves and then soon higher interest rates which they are discussing to cool their property and other bubbles. The last several times China did this over the last several years all world markets tanked within several months. This info is commented on in our latest newsletters.

Then, the US Quantitative easing (buying everything in sight from stocks to mortgage securities for which there is almost no market now but is a huge part of the home loan business) is ending in March.

March-May

Again the correlation – and there are others – but the correlation is for a huge market decline starting around March of 09 or so. Much of the QE worldwide, not only from the US Fed and Treasury, but also a staple financial tool in Japan, and of course the UK now, and others are all adopting this tactic., China too.

But, the only question is how long QE will last. My expectation is that after the US let’s go of QE, the rest soon follow, the logic being why be the only man in a parade? A parade needs more than a few. So, no parade. The parade is cancelled.

And so, we are counseling people to prepare for what is coming around March – at least what we think is coming for commodity and the financial markets. ..

But March or a month or two around that period is going to be fateful. There are other pressures of a great magnitude as well.

US Debt bomb roll over

Half of US Ts are now around 2 yrs or less. The US needs to roll over or issue an astounding $ 5 trillion of US Treasuries in the next year and a half. How will that happen??? Again, the fateful 2010 period  of massive debt issuance/rollover for the US looms menacingly. 2010 is a fateful year for the US debt market. Not to mention that places like Greece and others are already just about to go belly up. Even though the USD rallies (we predicted this months ago) the USD is in serious trouble soon.

It will be a dark time worldwide. There is a lot more to say here. Needless to say that will be in our future newsletters for paid subscribers. If you noticed, we have not been publishing as many public articles, and one reason is that our paid people get a great deal more of this analysis than the public articles offer. Obviously. And we have quite a batch of recent newsletters out, that will most definitely intrigue you. They are my best stuff to date.

We are also raising our prices substantially. Basically, I realized that we are often way ahead of the curve, and are followed by other writers. The present PrudentSquirrel is worth every penny. We are not cheap and just another newsletter out there, anymore anyway. Our present prices are $144 a year for 44 newsletters and mid week email alerts. That will go to $360 a year. However, if you want to subscribe now, since we have not yet raised prices, you may still do it for $144. We offered existing subscribers re-subscription specials before this coming price increase and had a huge response. So, evidently our subscribers agree that the newsletter is worth it.

Lastly, I would like to point out that we have made some astounding predictions over the last two years about the USD and gold and other currencies. If you stop by our site, we’ll have a page showing you them. We do not make many predictions like that, maybe 2 or 3 a year. But our last batch was quite on the money… you’ll see when you take a look.

By Christopher Laird
PrudentSquirrel.com

Copyright © 2010 Christopher Laird

Chris Laird has been an Oracle systems engineer, database administrator, and math teacher. He has a BS in mathematics from UCLA and is a certified Oracle database administrator. He has been an avid follower of financial news since childhood. His father is Jere Laird, former business editor of KNX news AM 1070, Los Angeles (ret). He has grown up immersed in financial news. His Grandmother was Alice Widener, publisher of USA magazine in the 60's to 80's, a newsletter that covered many of the topics you find today at the preeminent gold sites. Chris is the publisher of the Prudent Squirrel newsletter, an economic and gold commentary.

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