Saturday, 24 May 2008

Next Leg of Credit Meltdown? 2008-05-24

Saturday 24th May 2008: Next Leg of Credit Meltdown?

I am just listening to Frank Barbera talking with Jim Puplava (this Mp3) on the newshour.

He mentioned some of the American banks and monoline insurers so I went and took at look at the charts. Oh dear! This looks a bit like February 2007 and August 2007. There are some spectacular losses and some charts positioned for potential major breakdowns from multiple price bottoms. See these!


Bank of America:,m50,m200&a=vm,r14&c=


Lehman Brothers:,e50,e200&a=&c=

In the UK, Halifax Bank of Scotland (BBOS) compared to Lloyds TSB and HSBC - nice downtrend - Slide, Charlie Brown, Slide!,e20,e50,e200&a=&c=hsba.l,lloy.l

It's interesting to compare these to some oil drillers:

Diamond Offshore:,e50,e200&a=&c=

Chesapeake Energy:,e50,e200&a=&c=

Tullow Oil (UK) vs the OIL ETF:
... one of the very few oil companies to be outperforming the price of oil! The 20+% gap up in the Tullow Oil share price apparently coincided with the announcement of a 600 million+ barrel doil discovery off the coast of Ghana.

It looks like Leg 2 (or is it 3?) of the credit crisis and accompanying hyperinflationary depression is underway.

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