Stock Market Panic Is Escalating

October 10, 2008 | By | Reply More

This has now become ridiculous. In less than two and a half hours the Dow has oscillated between 500 and 45 points down. Gold has dropped to below $895 an ounce, so what is it all about?

Stock market panic is escalating!

 

Is it the market makers taking a punt or are they all at sea? Is it the short-term traders diving in and out? Is it market interference (read manipulation) that is exaggerating these extravagant movements? Are liquidity problems still driving these see saw actions?

 

Why is gold not going through the $1000 barrier? Why is silver/gold ratio going further out of synch?

 

Clearly panic has replaced reason in these tumultuous times and if history is anything to go by this is to be expected.

 

Seasoned veterans of the stock markets should have, and hopefully are recognising the signs and are poised to strike. The opportunity to become very rich is here but not quite yet.

 

Forces outside our understanding still have control. Emotions and the will to financially survive are understandable but when allied to greedy and short term opportunists in the financial world and compounded by politicians and their acolytes who refuse to face up to economic realities and seem not to have the mental abilities to recognise that there is no easy fix by just chucking money at failing institutions makes it impossible to forecast the eventual result.

 

These markets could turn at any time, despite the posturing of the politicians, when it dawns on funds and investors with any money left that there are some outstanding bargains waiting to be picked up.

 

Not least of these are gold and silver as currencies all over the globe continue to lose their value.

 

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