11-21-09

Just finished reading Robert Prechters November issue of the Theorist. I wanted to sum it up by heading.

Markets- The smart money is leaving the market and we are about to turn down into wave three. We currently are in primary wave 2. We have had our highest reading on gold bullishness.

Inviduals are begging to invest into municpal bonds. This is a bad idea because the bonds may not be able to be paid back by the counties and states that wrote them. Don't own muni bonds!

Banks are in trouble because of mortgage deliquencies. They have lent to many people who can't repay the loan. These people are walking from the loans. This is even happening if the person can repay the loan. This leads the bank with the loan which has deflated in value creating a deflationary scenario.

Banks have been lending more to consumers than to business which is a mistake.

10% of all loans are done by private firms or individuals. The rest or 90% are done by the goverment.

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