WALL STREET ALERT: We Warned You It Was A Suckers Rally!!! Gonna be a painful day for Dow Jones

Zuma's Batcomputer just sent a Wall Street alert that today is gonna be a "DOW-N" day for the Dow. One of those painful down days that reminds you how fragile the economy is. Oil at $110 per barrel ain't helping the already sucky housing, credit and bond markets and weaker than ever dollar. Margin calls are hitting some of the big boys real hard! (See Carlyle story). Oil will continue to skyrocket higher than your worst nightmare ($145-$150 in the short run.) What is causing the rise in dollars per barrel? The U.S. is backing Columbia vs Venezula's Hugo Chavez, so the risk of oil supply disruption is already driving the price up. (Hugo might turn off the oil switch.) Remember, when oil goes up -- so does gold. Silver ain't doing bad, either. GOLD is at $990 and SILVER is at $20.42 in overnight trading.





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Fed Chairman Bernanke Addresses Senate on Slow Growth and Inflation

Fed Chairman Ben "Bertankie" Bernanke is addressing Senate with a Q& A session today. Here are some highlights (lowlights, actually) from the meeting still in progress:

* Disputes the idea that current economy is like it was in the '70's.

* Banks "risk management" practices must be examined.

* Unemployment rate expected to go higher.

* Food and energy prices represents bulk of inflation problem.

* Effectiveness of interest rate cuts depend on strength of economy.

* Weak economy and tight credit markets make each other worse.

* Some bank failures could take place.

* Greater inflation pressures coming from rising oil prices.

* Many issues are different than in 2001.

* Keeping inflation stable is key.

* Fed prefers to take action at regularly scheduled meetings.

Ben Goes To Congress (2/27/08)


Washington Post article
CNN Article
Chicago Tribune article
LA Times article
Zuma Dogg's Wall Street/Economy Blog

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