More bank failures, Fed headed to zero

October 28, 2008

Alpha Bank was on the list I placed here on September 11th, and I wrote that I believed their collapse was imminent. This bank was closed on October 24th.

I also wrote on September 11th that “I believe that they(FED) will cut a few times before 2008 is over.” And of course, they’re going to zero. But the dollar rally will continue longer than the one year I expected back then.

I’m glad that I wasn’t mistaken in any of these.

I have been ill these weeks, and had to stay in bed, but I will return to updating this website as soon as possible, hopefully from tomorrow.

Finally, with respect to today’s massive rally, let me record here that I expect S&P 500 to go as low as 500 over the next year. The TARP will probably perpetuate the crisis, rather then solving it, as I also hope to explain here tomorrow. And the hopes of the market in a socialistic solution to the financial crisis is likely to be broken in short order by developments to come in the next months.

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