Citi: Apart from price action some reasons not to like these are.
1. They both suggest that the 2009 lows would be re-tested by 2014-2016
2. They both preceded / led into World Wars 1 and 2 respectively.
Read the whole post at Zero Hedge
Citi Near Term Stock Forecast: 9300 In The DJIA; 985 In The S&P; Sees Chart Analogs To Pre-World War PeriodsSubmitted by Tyler Durden
4 comments:
I quit reading when I encountered this, "the population ... will beg Bernanke to print"...
Detroit Dan, that was ZH. The interesting part of the post is what Citi had to say, which is below the ZH intro. I guess I should have made that clearer in the post.
The ZH commentary is often right on, however, as long as one realizes that it's 180 degrees off. :)
Mr. Hickey:
I must admit I never read ZH anymore as about all they do is throw off on the government and push gold. To me ZH is the antipathy of MMT. But, I did skim the article and it seems to me that it is another case of ZH talking their book instead of CITI talking their book. Honestly, I feel that the people at ZH should curb their desire to see gold at $2200 an ounce and the stock market and US dollar collapse. Maybe that will happen tomorrow, but I really won't say that the good people at ZH called it since it seems they have been calling for it for eternity. Alter all if someone always calls for something then it is only reasonable that someday it might happen. Much more reasonable is that Randell Wray is correct and the gold bubble has burst.
Now, I believe that Warren Mosler has a completely different take on the situation than ZH. Please read Mr. Mosler's latest column dated December 15, 2011 and tell me if I am correct in thinking that he suggest that Europe should stabilize for now.
I believe that Mr. Mosler is much more reliable than any of the Cassandras at ZH and I suspect that you do also.
GLH, Warrem is more sanguine about the EZ than I am. I wouldn't touch anything there with a ten foot pole that didn't carry a huge risk premium.
Governments are very powerful and should never be discounted because in the end they will act to influence markets.
But it's the political situation there that may constrain this. Then the only alternative is other countries rushing into protect their interests. However, Benanke has already declared that he does not have the authority to do get involved.
I still the EZ in Credit Anstalt mode, with the credit rating agencies piling on now. That cris is still in full swing as far as I can see.
But Warren is the expert in this.
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