Again, The Wage Rent Ratio Equilibrium
Penned on Saturday... posted today due to its prescience...
The NDX low for Friday and the cycle since 11/21/08 was 1110.94. (Today's low 1072.42)
The MID, RUT & NDX are still above the 11/21 lows. DJUA, DJTA, DJIA & SP500 are all at new multi decade lows.
Observe Friday's new low for the cycle for the DJIA 7033.62 and SP500 734.52. (Today's lows DJIA 6705.63; SP500 692.3)
The SP500 is particulary important as this low has not been seen since 1996.
750 is a critical multi decade support line which the SP500 closed below 2 of the last 5 days. (Now 4 of 7 days)
Should the SP500 close below this line 3 straight days, all hell is going to break loose to the downside. (Today IS the 3rd straight day)
Look at an SP500 chart with at least 15 years of data, see the Sillycon Valley dot com bubble? Then the Greenspan free money housing echo bubble?
Look at a chart of the SOXX, see the tech bubble?
On all account, we are now back at historic norms set back in 96-98 for equities.
Check a chart for any commodity except gold and witness their bubble and blowoff.
As Nattered before in this blog, all asset prices including housing prices must roll back to 1996 price levels for this disaster to stabilize.
To cure it, a combination of asset price decline and wage increases which put the wage/rent ratio back into equilibrium or at historic norms of 3.5X is necessary.
Read here for our definitive analysis and search our blog for the string wage rent equilibrium.
Until these market conditions are met and supposed economists and those who think they are in charge realize this...
all bets are off, and ANY and ALL efforts to cure this mess WILL FAIL MISERABLY.
The NDX low for Friday and the cycle since 11/21/08 was 1110.94. (Today's low 1072.42)
The MID, RUT & NDX are still above the 11/21 lows. DJUA, DJTA, DJIA & SP500 are all at new multi decade lows.
Observe Friday's new low for the cycle for the DJIA 7033.62 and SP500 734.52. (Today's lows DJIA 6705.63; SP500 692.3)
The SP500 is particulary important as this low has not been seen since 1996.
750 is a critical multi decade support line which the SP500 closed below 2 of the last 5 days. (Now 4 of 7 days)
Should the SP500 close below this line 3 straight days, all hell is going to break loose to the downside. (Today IS the 3rd straight day)
Look at an SP500 chart with at least 15 years of data, see the Sillycon Valley dot com bubble? Then the Greenspan free money housing echo bubble?
Look at a chart of the SOXX, see the tech bubble?
On all account, we are now back at historic norms set back in 96-98 for equities.
Check a chart for any commodity except gold and witness their bubble and blowoff.
As Nattered before in this blog, all asset prices including housing prices must roll back to 1996 price levels for this disaster to stabilize.
To cure it, a combination of asset price decline and wage increases which put the wage/rent ratio back into equilibrium or at historic norms of 3.5X is necessary.
Read here for our definitive analysis and search our blog for the string wage rent equilibrium.
Until these market conditions are met and supposed economists and those who think they are in charge realize this...
all bets are off, and ANY and ALL efforts to cure this mess WILL FAIL MISERABLY.
Comments
http://www.sovereignsociety.com/2009Archives1stHalf/022509AnOpenCandidandNonPartisanRespons/tabid/5366/Default.aspx
However, I think it's hopeless. Such letters and such comments amount to farts in hot mittens.
I like your website.