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 www.FinancialSense.com 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!

Ambac:
http://uk.finance.yahoo.com/q/ta?s=ABK&t=2y&l=on&z=m&q=c&p=m20,m50,m200&a=vm,r14&c=

Bank of America:
http://uk.finance.yahoo.com/q/ta?s=BAC&t=2y&l=on&z=m&q=c&p=m20,m50,m200&a=vm,r14&c=

Citicorp:
http://uk.finance.yahoo.com/q/ta?s=C&t=2y&l=on&z=m&q=c&p=e20,e50,e200&a=&c=

Lehman Brothers:
http://uk.finance.yahoo.com/q/ta?s=LEH&t=2y&l=on&z=m&q=c&p=e20,e50,e200&a=&c=

In the UK, Halifax Bank of Scotland (BBOS) compared to Lloyds TSB and HSBC - nice downtrend - Slide, Charlie Brown, Slide!
http://uk.finance.yahoo.com/q/ta?s=HBOS.L&t=1y&l=off&z=m&q=c&p=e50,e20,e50,e200&a=&c=hsba.l,lloy.l

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

Diamond Offshore:
http://uk.finance.yahoo.com/q/ta?s=DO&t=2y&l=on&z=m&q=c&p=e20,e50,e200&a=&c=

Chesapeake Energy:
http://uk.finance.yahoo.com/q/ta?s=CHK&t=2y&l=on&z=m&q=c&p=e20,e50,e200&a=&c=

Tullow Oil (UK) vs the OIL ETF:
http://uk.finance.yahoo.com/q/ta?t=2y&s=TLW.L&l=off&z=m&q=c&p=m20&p=m50&p=e200&c=oil
... 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.