The burst of the bubble in the bank index will cause collapse of economy and financial meltdown – the bank index looks like 1929 Dow!
Peter Oberois
Feb. 11, 2007

If you look at the Bank index you will get scared. A forty-year cycle has completed. Since late eighties the Bank index has gone up by 10 times. It appreciated from 15 to 148 by end of June 2006. Since June of 2006 it has started declining.

The budget deficit and the excessive liquidity helped the banks to proper. But now things have started back firing. Like in late eighties, the bank will finally request Government bail out. The magnitude is so big that the Government may not be able to bail out the Banks this time except for the customer deposits.

The net result can be tripling of budget deficit to save bank guaranteed bank deposits. The real estate bubble burst always happens before the banking bubble burst. As a matter of fact, real estate drags the bank index down.

The real estate may stay somewhat stable for the next one year but the boom is not going to come back so easily because the people in the main street are scared buy investment properties now.

The Bank index mirrors the 1900-1929 chart. A crash Bank index may have already started. The Bank index can fall below 25 in the next three years. That will devastate the economy and financial infrastructure.

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The burst of the bubble in the bank index will cause collapse of economy and financial meltdown – the bank index looks like 1929 Dow!
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The Bank index mirrors the 1900-1929 chart. A crash Bank index may have already started. The Bank index can fall below 25 in the next three years. That will devastate the economy and financial infrastructure.
READ MORE>>

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