- KINGSTON, NY -- As Americans celebrate Labor Day (the
worker's holiday for workers lucky enough to have jobs), the financial
news from across the pond is anything but celebratory. Today, the equity
market meltdown that saw US stocks logging their worst August in
10 years hit Europe even harder and sank major Asian indices to yearly
lows.
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- Today's sell-off, which began with the Asian markets
falling some 2.5 percent followed by a 5 percent drop in European markets,
is setting off frantic alarm signals. Just two of the 45 markets tracked
by Standard & Poor's Indices rose during August, and September has
begun on an ominous note.
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- The summer collapse I predicted is underway, and there
is much worse to come. (<http://enews.trendsresearch.com/q/TAVobUFg1nE7KUEPeroxyf
vJZmRzf8r5Rxo0Mbl0wmQ2xVFGXLACaVi6O>See Trend Alert®, 13 June
2011, "COLLAPSE: IT'S COMING! ARE YOU READY?")
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- Trend-conscious Trends Journal subscribers
around the globe take note: The world markets are in meltdown, and nothing,
but NOTHING, that "policy makers" make up will reverse it.
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- American subscribers, who may well be tuned out of the
news and in a holiday mode today, could find if Europe is a harbinger
of what to expect tomorrow the day after tomorrow bringing panic
to the Street.
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- Do you know where your money is? And if you want it,
will you be able to get it? European, American, Chinese it doesn't matter.
The banks are taking a battering. Just today, The Royal Bank of Scotland
fell 12.3 percent, Deutsche Bank 8.9 percent, and Société
Générale 8.6 percent. In the last six months, major
US and European banks have lost about half of their value.
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- Fears are mounting that some European banks would not
be able to meet their debt obligations if they were forced to recognize
the existing losses in their balance sheets. Despite years of promises
to remedy the sovereign debt problems by the European Central Bank and
the International Monetary Fund, it is becoming obvious they will not be
able to do so.
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- Is that why, as ECB data reveals, European banks have
been withdrawing their cash from the European banking system and transferring
it to the US as indicated in data released by the US Federal Reserve on
Friday?
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- Take action as appropriate. With gold closing today above
$1,900 an ounce, my forecast for "Gold $2,000," once roundly
ridiculed, is now, for all intents and purposes, realized.
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- ©MMXI <http://enews.trendsresearch.com/q/iymg6ELs1
4DBwr_skbpg_oR1flvJ9rMnwJ_g_zRBYumsE__BGXWyvFEKK4>The Trends Research
Institute®
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