Stock Market TOP Predicted Today

The Stock Index Model has been expecting strength into this week’s ZOS (7/11–7/15) and we now think that a major TOP is being formed today.

 

If correct, and if the stock market continues to track the Behavioral Analysis of Markets Model, we’ll see an immediate plunge in price– carrying indexes back to/through the June low as early as 7/22 but no later than 7/28ish.

 

The nature of the predicted decline would be crash-like w/ fast-market attack levels (retests) for the ES Futures are located at:

 

2085, 2036, 1991, 1929, 1889, 1844, and 1833.

 

The current BAM-VI (Break/Acceleration) trigger levels stands at DJIA cash 18387 and that will serve as our “short below/flat above” trigger level for our Position Trader Model next week.

 

Please either subscribe or check back for future predictions as we will have an updated forecast on 7/28 which will determine if any new all-time highs are expected in any of the stock indexes.*

 

*Any future short-term updates will not change the BAM Stock Index Model’s forecast for a stock index BEAR MARKET carrying prices back below the 2009 low as we trade into 2018-2019.

 

Good luck!

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World’s First Mobile App that PREDICTS S&P 500 Intra-day Price Movement

DOWNLOAD  the FREE BAMpredictor Mobile App during our limited beta 

http://forms.aweber.com/form/01/1535835101.htm

 

Screenshot_2014-05-16-15-29-02

 

—The Behavioral Analysis Model predicts the intraday “zones of strength” and “zones of weakness” for the S&P 500.  It then generates data points in terms of pacific standard time and provides our admin panel view—

App-Model-4

—The admin panel then transmits the data to the client’s mobile app displaying the chart in exchange time, PST, EST, CST, or MST as well as their choice of either chart—

 

…“Theme – 1”

Screenshot_2014-05-16-16-07-52

 …or “Theme – 2” 

 

Screenshot_2014-05-16-16-08-06

 

 –Here are today’s actual tracking results in EST–

 

App-Model-chart-4

 

5-16-14– Our first day of Beta testing, all but two zones tracked the model, with one zone of weakness only 3 minutes off a turning point low, one zone of weakness only 1 minute off the session low, and one zone of strength (12:12pst/3:12est) posting a precise hit on a high—down to the exact minute!

 

INTERESTED?  CONTACT US FOR A FREE DOWNLOAD !

http://forms.aweber.com/form/01/1535835101.htm

 

 

 

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Client Case Study – WHEAT

This client owns a large farm in South Dakota.  He rotates crops from time to time, but back in 2012 he had just harvested a large wheat crop and he came to us to help him decide whether he would sell the wheat into a market trading at a five-year low, or hold out and “hope” for better prices.  He first heard about the Behavioral Analysis Model through a mutual friend and decided to contact us for advice.

The following represents actual email exchanges and charts sent to the client as the Behavioral Analysis of Markets Model generated real-time data that guided our forecast.  The model was predicting a major low in wheat and the client used that information to help make a better decision with respect to storage of his wheat.  Waiting five months to liquidate his wheat allowed the client to sell his harvest at a 50% premium above commodity market prices when he came to us for help.

Feb 22, 2012

“Please tell Phil that the “buy zone” was reached (see attached chart) on that 2/21 sell-off and we don’t need to see any further weakness during 2/23.  Looks up, up, and away from here.”

Feb 29, 2012

“Things look great.  Wheat is tracking the model nicely and I’d expect that accuracy to continue.  I’ll keep an eye on it and continue to update the original chart  from time to time.”

 

WHEAT-PHIL-2-22-12

 

March 13, 2012

“Updated chart for Phil.  New zones of strength and everything is on course to see higher levels during March-April.”

WHEAT-PHIL-3-13-12

 

March 16, 2012

“No chart update needed.  Please tell Phil everything looks perfect and I think wheat is about to explode to the upside and hit our April target early.  This looks very, very bullish.”

March 23, 2012

“Stubborn trading action but it should resolve on upside according to model.  Chart attached.”

 

WHEAT-PHIL-3-23-12

 

April 16, 2012

“Wheat should have been able to rally more sharply into last week.  Odds now favor a decline back toward 580 level if they can’t get back above 650 quickly this week.  Still thinking it will be at current levels or higher into May and will keep you posted.”

April 26, 2012

“It looks to me like wheat survived the final bear window without breaking the Dec 2011 low, and the model is now very bullish into May and probably even June.  We’ll soon find out.”

 

WHEAT-PHIL-4-26-12

 

May 11, 2012

“No chart, but model is triggering strong buy signals on this pullback and looks very bullish during May.  Think it will be right back at 635 early next week and then continue higher into June.”

May 16, 2012

“Tell Phil it looks like it will lock limit up here during May and into June”

May 20, 2012

“The melt-up that the model has been anticipating is here in full-force, and the next targets are 7.65-8.00 into mid June.”

 

WHEAT-PHIL-5-20-12

 

May 29, 2012

“Updated chart for Phil.  Everything still looks good, and I’m expecting higher levels into mid/late June.”

June 27, 2012

“Hope you’re enjoying the weather!   What is good for us, is bad for wheat (but good for Phil).  No change in model.  Wheat remains very bullish as it tracks the model to the upside here during June, and I’ll let Phil know if anything changes.”

 

WHEAT-PHIL-5-29-12

 

 RESULTS-

WHEAT-PHIL-JUNE-JULY

 

 

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Hello and Goodbye DOW 15,000 and S&P 1600

The stock market is hovering near session highs as we write this post, and the normal Friday pin-the-tape algos are flat-lining price action.  But while investors celebrate new all-time highs, the BAM stock  Model is once again warning subscribers of an immediate price plunge.  Between May 6th and May 17th, we expect prices to cascade lower as the recent price inversion created by machine-induced short-covering is violently unwound.  Our “rule of 4” states that market inversions are unwound four times as fast as they originally unfold, and although we’re not going to share the specifics about downside price targets, the price extension we’re tracking has been chugging along for quite some time now.   What that implies–and we’ve seen this before when the FED spooks markets into upside price-extensions–is that the decline we’re expecting should surprise the majority with respect to its speed, violence, and downside target level.

 

If you are bearish, the BAM Model would short the ES (S&P 500 futures market) here today at this level (1611.00) and if you are bullish, the model would take profits here and sit on cash for the coming 2-3 weeks.

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BAM Model Calling For TOP in S&P 500

As subscribers and Twitter followers at @baminvestor and @bamglobalpro know, the BAM S&P 500 Model has been calling for a major stock market TOP into April 10th.   This expected turning point high is predicted to occur into the early morning hours–ideally between the 7:45-8:30am pst period–with an estimated price target of 1580-1585.00.    Assuming the market tracks the model properly and posts a reversal high on April 10, followed by late session weakness, the bigger-picture models are pointing toward a decline into April 15-17, followed by a bounce, followed by severe weakness into about May 6 to kick-off the decline.

Price projections for the severity of the assumed decline are tough to measure until the market rolls-over, but once we’re able to gather readings from our proprietary BAM-VI (Velocity Indicator) we will update subscribers.  At this point our forecast calls for a decline of at least 10%, and using history as a guide, our model tells us that price extensions within inversions (represented by the 21 month advance spanning November 2012 through April 2013 period) are unwound four times as fast as they originally unfold.  We call this our “rule of four” and it implies a complete give-back of all gains posted during 2013, over a short 5-6 week period (or into May 15-22).

Perhaps more troubling, is the fact that our Russell 2000 Model and our Nasdaq 100 model are both in a crash fractal configuration as we write, and although these fractals do not necessarily have to unfold per the script, we’re always very cautious when they appear.  That said, we’ll be monitoring global markets very carefully for clients as we move forward because the backdrop is proper for a full-blown debacle during 2013.

Long-time followers know that we built the BAM Model through the study of fractal boom and bust periods and we have an in-depth knowledge of the 1929-1933 period, the 1987 period, as well as the May of 2010 flash-crash period.  All of those events were predictable as all unfolded within crash fractals of various degrees.

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Will Apple Invalidate 92 Years of Research Data?

I want to start by saying that I’ve obviously been 100% wrong with regard to my prediction calling for an imminent price collapse in AAPL shares. Granted, the stock declined sharply following our original post, but it has since moved higher, recently going completely parabolic.  I purposely left the original post below, in order to own this call, but unless ninety-two years of research has suddenly been single-handedly invalidated by AAPL, the stock will indeed crash, reaching each and every price target we originally set forth.

I’ll get to the AAPL update below, but first let me explain a little about how the BAM Model works, its inputs, and the accuracy of its past predictions.

In its simplest form, the BAM Model tracks separate price bar data ranging from monthly all the way down to 25 tick. The model works identically, whether we’re tracking an individual stock, stock index,  ETF,  commodity, or currency. Our research shows that human nature, (greed and fear, optimism and pessimism) as displayed in price action, appear the same regardless of the instrument being traded.

Each set of chart data is analyzed individually first, and then combined with the other model time frames into a master model used to make investment decisions. If we’re dealing with short-term traders, we pay close attention to the 60 minute model for trend and drill-down on 5 and 1 minute models, as well as the twenty-five tick model, to determine entry and exit points.
As we study each individual time frame–and the fractal bull and bear markets they each trace out–we use the same topping and bottoming “count” (a number commonly found in nature) in order to determine when a bull leg should have run it’s normal course, and when a bear leg should normally ensue. The opposite is done for a bear market leg and we track the exact same “count” to the downside as we look for signs that the bear leg has run its course, expecting a bull leg to ensue. For example, during a single trading session, an active, range-bound stock might cycle through three bull legs and three bear legs if we’re observing our 25 tick model. On the other hand, if a stock is trending, it might require multiple sessions to cycle through a single topping or bottoming count.

Price Extensions Explained

Occasionally, a certain fractal model will extend its count either up or down, when the fractal model of a higher degree proves overwhelming in its strength. For example, if we’re observing a 5 minute model that has run through its normal topping count number and we’re therefore expecting a price reversal, that reversal might be delayed and the 5 minute count extended if the 6o minute model has not yet topped and continues to display further zones of strength. Once the 60 minute model has either cycled through a topping count of its own, or run through all relevant zones of predicted strength, the price reversal ensues, and the 5 minute model claims back not only all price progress made over and above the “natural” topping count, but it will continue down until it traces out a full bear bottoming count. This type of action is commonly seen in false breakouts or false breakdowns where violent price reversals are seen after a market has improperly priced future optimism or pessimism. This action is also common in crashes and melt-ups where “A” tops and “V” bottoms are common.

Retest Levels and Price Magnets

Retest levels, in our work, are not based on price breakouts and price breakdowns, or commonly tracked price “gaps.” Our retest levels are based on trend line studies and a proprietary methodology we use to create “price stamps” at levels that MUST be revisited at some point in the future. In calm markets, these levels are typically retested within minutes, hours, or days after a trend break, but in hyper-volatile markets, driven by FED announcements or company specific news flow–we often observe unnatural price activity that does not allow for a normal retest to occur. This unnatural activity leaves behind excellent clues about future price action, and we exploit these clues along with other components of our model, to set up price target forecasts for the future.

When we first built the BAM Model, the focus was exclusively on boom and bust periods of the past, specifically, 1928-1932, and 1985-1987. During both of those periods, investor sentiment—driven by human nature/greed—created situations in which price moved up so rapidly that it did not allow the proper “resting time” needed for a retest to occur. The reason they ended badly though was not simply because the market had priced in excesses. Excesses can be unwound in an orderly fashion if price retest occur along the way, but when a market refuses to allow retest time after time after time, if creates a situation in which all of the retest eventually occur almost simultaneously in a straight-line. Again, upside or downside price targets, when revisited in a controlled fashion, rarely create problems in financial markets, but speed kills. It’s the rapidity of retracements that cause investment firms to implode, and that’s our concern here specific to AAPL.

Apple’s Untested Price Levels Set up Future Collapse

The fact that AAPL comprises such a large portion of the indexes is not only insane, it’s dangerous. How can the powers-that-be tout their intelligence in creating ever more complex products aimed at aiding diversification and minimizing market risk, yet ignore the fact that a single stock has achieved such a huge weighting? We’re clearly now in a situation in which a simple pullback could easily morph into something out of control. We could now see a major market decline provide the catalyst for an AAPL implosion, or an AAPL implosion provide the catalyst for a major market decline. In other words, we’re now in a situation whereby AAPL is the chicken and the egg; the dog and the tail. And since none of the previously published downside price targets have been invalidated, we’re faced with the reality that our model is now calling for an even larger crash in the share price of AAPL.

The list of untested price levels in AAPL now stand at: 426, 250, 155, and 45, and since “retests” are by nature violent events, this will almost certainly take the form of a mechanical, forced-selling type of decline. As far as catalysts, I have no clue, but let’s review a few of our past forecasts that were highly controversial at the time and see how those panned-out.

On November 12, 2007, just after the US stock market had posted an all-time high we said-

“let’s start by reiterating our bigger-picture BAM stock market forecast which points to a brutal 58% bear market decline into 2010 with the SPX round-tripping the entire 2002-2007 bull run before finding support into the SPX 680 level.” Result? The SPX bottomed in 2009 at the 667 level.

When Hovnanian was trading at 72, we published a crash target of 7 (it traded to 1).
When Crude oil was trading at 147, we published a target of 36 (it traded to 36).
When General Motors was trading at 30, we published a target of 2.50 (it traded to 0)
When Research in Motion was trading at 102, we published a target of 24, (it traded to 15)
When BIDU was trading at 310, we published a target of 187, (it traded to 100)

As for bull market “melt-up” predictions, please refer to the blog post below titled “The Unpredictable” Nature of Mother Nature.” There you’ll find our wheat and OJ calls.
All of these are examples of outrageous price predictions that came to fruition, and although that certainly doesn’t guarantee we’ll be vindicated on this AAPL call, my money remains on the model.
As you can see in the chart below, AAPL has now raced up into the overhead speedline (a typical melt-up target and resistance) and should be vulnerable to a price collapse, first to the 426 level and then down to our original targets. There’s no question that this extreme price advance has already seriously wounded my account as well as my credibility, but the cult-like behavior of the AAPL bulls, as well as the hacking of our website and constant bashing on Twitter, are all signs of an unprecedented bubble. In fact Apple’s breakout since January 20, 2012 has spawned a parabolic advance that has more than doubled the 20% parabolic blow-off high seen in the DOW prior to its 1929 top and subsequent crash. The more things change, the more they…

We’ll report back when something notable occurs.

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BAM’s 45 Dollar Target Stirs Angry Apple Mob

Apple_bad apple 2When we prepared the information for our recent press release, (See Full Press Release on Fox Business) we didn’t expect to be instantaneously pummeled with verbal assaults from Apple enthusiast.  But the fact that we created so much anger and so many outrageous claims—from orchestrating a collapse in the stock, to knowing something others don’t know about Steve Jobs’ demise—says a lot about the cult-like following this company and its stock currently enjoys.

Remember, a bubble stock by definition must be vigorously defended by its participants.  In other words, the outpouring of negative comments regarding our 45 dollar price target on AAPL actually confirms what our model is telling us.  And although I don’t want to attack the attackers (because I understand their reaction to our forecast for an 80% plunge in AAPL) I do want to point out the fact that these people reacted violently and instantaneously, without any knowledge of our track record.

Believe me…I have nothing against Apple or any of their users.  This press release was simply another attempt at providing retail investors with a piece of the information normally viewed only by my hedge fund clients.

Let’s face it, if you think it would be impossible for Apple to decline to 45 dollars between now and 2011, I assume you’ll hold on to your position.  But refusing to even entertain the idea of a large decline in ANY stock has historically proven a bad approach to investing.  The bottom line is that things change.  Maybe there’s a kid in a garage inventing a product that will disturb Apple’s dominance.  Maybe Google has a few more tricks up their sleeve.  Maybe the global economy is poised for another derivatives-led implosion (our model says this is coming) maybe, maybe, maybe.  Who knows what fundamentals will prove out after the fact? I certainly don’t.  But I know the BAM Model’s track record and I’ve learned not to doubt it not matter how crazy the predictions might appear.

As you’ll see below, many of the comments from the MacDailyNews site were typically juvenile, “BAM obviously stands for Boneheads, A**holes, and Morons” while others wanted us investigated “call the FTC” but other comments really do speak to the brainwashing that takes place when a bull-driven bubble stock mesmerizes its participants into believing in their own brilliance.

Comments attached to our press release:

-What an idiot! $42 is less than Apple’s cash in the bank

BAM = Balmer And Microsoft….

-Speachless (sp) once AGAIN!!!! Stupidity of BIBLICAL PROPORTIONS!

-Where is BAM Investor located? I don’t want to drink what’s in their water.

-They’ll have over $15 EPS at year end what are these guys smoking?

-Can you say stock manipulation?

-The term snake oil salesman comes to mind and what a prize if they can fool enough people into taking the medicine they peddle.

-Apple is not a bubble stock. It had $9.6B in earnings last year, and will likely have $13 to $14B in earnings this year. Bubble stocks don’t have earnings to support their share price, Apple does.

-I last heard that Apple’s cash in the bank is at $52 per share. Doesn’t he have someone the understands basic quarterly reports to help this idiot out?

-This one truly needs to be investigated. In attempting to create a self-fulfilling prophesy, I’ll bet they have a sizable wager in the market themselves. Even a small move, created by this hogwash, may make them money. Scum.

-As someone else mentioned, I’d like to see more then two or three cases where these dudes were right. Even I can get lucky – one in a million times perhaps. Real data please or STFU!

-There is NO WAY to predict the future of random systems

Past Results of our “Random System”

As I said earlier, I have nothing against AAPL.  We’re simply passing along information generated by the BAM Model to attract attention to our product in an attempt to help those willing to listen.  After all, every single downturn sprouts a whole new group of people complaining that they “should have sold.”

Here’s the unedited, original BAM Report we mailed to hedge fund clients back in November of 2007 just after the DOW hit an all-time high at 14,198.  The news was almost unanimously bullish as were investors, and the individual stocks we highlighted (with “outrageous” downside price targets) were all seemingly healthy as they hovered 70% to 100% above the downside targets our model predicted.  As you’ll see below, these stocks read like a who’s who of big names, they were in diverse sectors, and the vast majority of Wall Street analysts were extremely bullish at the time our report was published.  Needless to say, we were laughed at back in 2007 just as the AAPL cult is laughing at us now…     

AIR, AIR, EVERYWHERE

November 12, 2007

-The stock market tracked the BAM model well last week as stocks suffered their biggest three day decline in five years with the NDX plunging in a “straight-line decline” to the 2056 magnet level just as anticipated. But now, just as investors probably think it can’t get much worse, it has.

-Lets start by reiterating the bigger-picture BAM stock market forecast which points to a brutal 58% bear market decline into 2010 with the SPX round-tripping the entire 2002-2007 bull run before finding support into the SPX 680 level.

That’s right, regardless of election year cycles, the Olympics in China, emerging market strength, a possible interest rate easing cycle etc. etc. etc. our model is unequivocally ultra-bearish over the coming few years in fact it most closely resembles the set up we had during the 1929-1932 period.

During the 1929-1932 period—to dissect it a bit for you—started with a crash followed by a large bounce followed by a variation of mini-crashes and long grinding declines.   No two periods are exactly the same, but as I take a step back and look at our stock model, it has a very similar set of sell signals, future periods of weakness etc. as did the 1929-1932 period.  In fact, the only real difference between the 1929 through 1932 period is that the current set up actually looks MORE bearish in our work.  Maybe that’s impossible, and maybe it’s not but let’s just say I can honesty tell you all that this is the first time I’ve ever hoped our model is 100% wrong.

Individual Price Targets Also Confirming Model’s Bearishness

When we first started talking about the enormous real estate bubble in 2005, the BAM model was giving us what appeared to be absurdly low price targets for stocks like HOV, DHI, BZH, KBH, and TOL during what we thought at the time would be a huge real estate collapse into 2009.  Well, those absurdly low price levels now seem believable—because we’ve already reached most of them—and  we’re now ready to talk about some equally absurd price levels we think other stocks will see on either a crash leg or over time during the next several years.  This is just a small very random sampling but it should serve to illustrate what we see coming.

GM-6.00, possibly even 2.50, into 2009

RIMM-48.75-crash leg, 24.00 into 2009

FSLR-120 crash leg, 52 during 2008

GS-70 into 2009

GOOG-293 into 2008

BIDU-187 into 2008

LM-23 possible on crash leg or into 2008

…Now let’s take a look at the results of the above predictions:

GM-6.00, possibly even 2.50, into 2009 (30 at report date, went bankrupt)

RIMM-48.75-crash leg, 24.00 into 2009 (102.60 at report date, crashed to 35.05)

FSLR-120 crash leg, 52 during 2008 (177.70 at report date, crashed to 85.28)

GS-70 into 2009 (214.71 at report date, crashed to 47.41 and was saved by bailout)

GOOG-293 into 2008 (632.07 at report date, crashed to 247.30)

BIDU-187 into 2008 (310.50 at report date, crashed to 100)

LM-23 possible on crash leg or into 2008 (72.86 at report date, crashed to 10.35)

Here’s the link to the full report from November 12, 2007 if you’d like to review it.

http://www.baminvestor.com/blog/2007/11/

Apple Sauce?

OK, lets get back to the current prediction by showing the a chart of AAPL along with a detailed description of the expected decline.

Apple, Inc stock crash zone

Apple Inc stock crash zone

We should see an initial fast-market collapse to the 155 price level on the first leg down and that will most likely occur this summer or very early in the Fall of 2010.  It would be typical to expect vibrating at the 155 level and the move to 45 dollars would then be a violent thrashing affair as bulls are stopped out in a grueling decline to the 45 dollar target (a BAM Magnet).  The move to 45 dollars per share will likely be achieved during 2011, but there remains a small possibility that we could see a collapse to 45 during 2010, so we suggest caution if you’re planning on trading the decline.

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Three Leaders Poised to Lead Markets Lower

chinaAfter a 14-session decline (during January and into February) that had erased all of the upside progress made since September 10th, 2009—and taken the FXI (China) a full 21% below its TOP—the stock Indexes have now moved back to the upside, taking many averages to slightly higher highs for 2010.

But technically, all is not well.

Let’s focus on two US stock sectors that led the advance into the 2007 bubble TOP—the XBD Index and the XOI Index–as well as the ultimate “tell” according to our work–China.

Do you all remember when finance and energy were the two “can’t lose” investment themes for the next ten years?

Even after the catastrophic crash, analysts continued to hype these sectors with chatter about China and India growth rates driving peak energy prices at the same time that globalization would fuel demand for sophisticated US financial products.

But if that thesis is correct, why aren’t these two popular indexes leading the market to new highs?

Have you noticed that these two sectors topped back in October when the BAM Model started to turn extremely negative the major averages?

That’s right.

The XBD topped on October 14, 2009 and the XOI topped on October 21, 2009 and if these two indexes roll-over and break the year’s lows, that will be a great indication that the other averages will be playing “catch up.” (or catch down if you prefer)

Now let’s focus on CHINA as their market looks most likely to crack the years lows ahead of the other indexes.

Back in November of 2008, the $DJSH (DJ Shanghai Index) bottomed and turned higher a full 4 months before the SPX bottomed in March of 2009.

Now, it appears that the same dynamic is occurring again (China leading the world’s markets) as the DJSH looks like it TOPPED back on November 24, 2009.

The confirmation of this idea will come soon IF and when the DJSH breaks the 2-3-2010 low and once that happens, we should see sell programs reign around the world as markets begin the acceleration phase of the expected crash.

Velocity remains in crash mode on a monthly and weekly basis but we need a bounce to properly align the daily and 60 minute models.

Remember, as the markets roll-over, we’re going to see a massive number of BAM Model sell signals triggered (cascade sell signal) so even if the velocity model is not perfectly aligned, we can still see multi-hundred point down days, we just won’t see the 700-1000 point swings we saw during 2008.

We continue to favor the long side of the FXP (Ultra-short China Xinhua) and we are long that ETF in personal accounts as well as the BMP (BAM Model Portfolio).

If you missed the Jim Chanos interview on the Charlie Rose show, it is worth watching.

Chanos talks about arguably the biggest bubble in the history of mankind.

>> Click Here to View

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IMF Signals Support for US Dollar

As you all know, our model is calling for a USD melt-up coincident with a stock market crash and we believe that has finally started.  We also believe the quant-driven “one-trade” dynamic of dollar DOWN/stocks, crude, gold, etc. UP will be looked upon (blamed) as a “catalyst” once the market crashes.

dollar_note_0127_22

Here’s an interesting article released yesterday.  It didn’t gain a lot of attention but that’s pretty typical when sentiment moves to an extreme.  (USD bearish sentiment readings are at record levels)

Our model is extremely bullish the US Dollar and we remain long.

=================

IMF/DOLLAR (URGENT)

WASHINGTON, Nov 19 (Reuters) – The U.S. dollar will remain the world’s primary reserve currency for many years or decades, an International Monetary Fund official said on Thursday.

Spokeswoman Caroline Atkinson’s comments came two days after IMF Managing Director Dominique Strauss-Kahn said the world can no longer rely on a currency issued by a single country, and a new global currency may evolve out of the IMF’s in-house unit of account, known as Special Drawing Rights. (For more, see [ID:nPEK204168])

“The managing director has said … he expects the dollar to be the leading reserve currency for many years or decades,” Atkinson said at an IMF media briefing.

She said the IMF routinely looks at what is happening in the international monetary system, but was not launching any sort of formal study into how SDRs might one day replace the dollar as a global reserve currency.

“During this last financial crisis, people actually found the dollar a safe haven and preferred to move into dollar assets when risk aversion was very high,” she said. “That suggests there’s very solid demand, based on the U.S. economy’s strength and size and liquidity of its financial markets.”

The dollar’s role in the world economy has been a topic of debate in recent months as its value fell against a basket of currencies. China, the largest foreign buyer of U.S. government debt, has expressed growing concern that the weakening dollar would hurt its finances. (Reporting by Emily Kaiser, Editing by Chizu Nomiyama)

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Let’s Stop the Lip Service and Start ‘Supporting’ Our Troops

For over one year now I’ve been telling anyone willing to listen that the US bailout will be viewed by historians as a complete and utter SCAM unless we’re willing to help our military by making them part of the solution.

iraq_troops03-14-2006b

These men and women risk life and limb for next to nothing while Wall Street feeds at the trough.

We need to stop the lip-service and show our commitment to these returning heros by including them in the American dream.

Hell, we could GIVE each and every one of them a FREE home for less than the tax payer subsidized bonuses we’re going to be paying Wall Street in December and January alone!

A friend of mine sent this piece to me written by Dylan Ratigan, and it echos my sentiments exactly.

Please take a moment to read it and see if it makes as much sense to you as it does to me.

Sincerely,

JG Savoldi

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The following piece was written by Dylan Ratigan

One thing about doing a two hour show that heavily covers both the financial crisis and the wars in Iraq and Afghanistan is that you notice on a daily basis the shocking juxtaposition between the lucky Wall Streeters and the unlucky soldiers.

We all know at this point that our banking system is being used as an unregulated bonus-seeking mechanism for bankers, now underwritten by taxpayers with $23.7 trillion worth of national wealth.

Bankers lent pretend money to home buyers to award themselves actual money in bonuses — making home prices balloon and, in the process, bankrupting America’s treasury, currency, the states, and many of its citizens.

To simply let the housing market rapidly correct itself (or more likely over-correct) would result in massive societal disruption, possible violence and unnecessary suffering.

So while we slowly attempt to close the taxpayer-funded bank casinos and try to restore the basic rules of investment and lending in our economy, we have difficult decisions to make.

Unfortunately, our only choice for a less jarring social transition so far has been to artificially adjust the real prices of our homes via government guarantees to banks (for bad mortgages and losing gambling bets) — or relatively arbitrary handouts to home buyers.

What did these people do to deserve the handout?

How do you feel about a Wall Street Banker who has been renting an apartment here in New York and this year combined the bonus money he made on bundling new taxpayer-sponsored Fannie Mae CDS with a first-time home buyers tax credit gift from the taxpayers to buy the penthouse in his building?

Meanwhile, we have already been at war for 8 years with no end in sight. World War II was 5 years. We are fighting these wars with the fewest number of soldiers in modern U.S. History. To avoid incorporating a politically unpopular draft, we deploy the same soldiers five or six times with comparatively minuscule breaks in between.

However, the dire state of the economy has been a boon to military recruitment, but I am not sure if we will ever see the Wall Street bank scammers claim their rightful credit for that.

So instead of using these bad- (Wall Street) to- arbitrary (first time home buyers) ways to pump money into rescuing our housing market, let’s give it to those who are truly deserving of handouts: our servicemen and women.

I propose that we immediately enact the following:

  • Give every single man and woman that is fighting for us a housing credit of $50,000, with the caveat that the credit must be used by someone within two years.
  • Make it so that the credits are completely fungible, meaning that if the veteran doesn’t wish to buy a house, he or she can sell the credit to someone who does — and keep the money. If the reselling of gift cards on Ebay is any indication, I am sure there will be a thriving market where soldiers could probably get pretty close to 90 cents on the dollar for their credit.

Considering the roughly 2 million veterans who have served in Iraq and Afghanistan so far, this would give a much needed $100 billion boost to the housing market. Just as a template for comparison, Goldman Sachs (albeit it doing “God’s work”) and the other complicit banks like JP Morgan and Morgan Stanley will pay $29.4 billion in personal bonuses this year.

In reporting on this financial crisis, I have been most surprised by the blatant disregard that our politicians and even some journalists have shown for the most fundamental American notion of fairness. I don’t think handing taxpayer trillions to some of the least worthy individuals is something that our country will stand for, regardless of what the current incumbents think.

If we must resort to handouts to save our country, let’s at least put them in the hands of the most deserving.

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