Merger Mania creating a bubble of the third kind – how will the mega crash look like?
Sam Adelton
Apr. 14, 2007

The stock market is now in a bigger bubble than the real estate was eighteen months back. In real estate small investors heard those “if I can make millions you can make it” ads to buy real estate for no down and flip to make handsome profits. That bubble has collapsed. But the real estate bubble was actually just small pocket of unrealistic expectations. However, the stock market worldwide now has reached the biggest bubble ever and in plenty of numbers since the collapse of Roman Empire.

The stock market is complacent like never before. The investment bankers have taken risks like never before. The hedge funds have forgotten the word “hedge”. The collapse is imminent and looks like the mega volcanic eruption. No one knows when and where it will start. It can be US or Europe or Asia. But overnight or during one-day session, the real damage will happen. Dow can collapse 5000 points in a span of two weeks even though the exchanges will open and close immediately due to limit down circuit breakers.

The real problem will be in the banking system. The run on the bank worldwide will create massive problems. The financial meltdown will make the G8 and other emerging nations meet in a hurried fashion. Some how the central banks will halt the collapse temporarily but in the next phase when the central banks are proved wrong, the collapse will be devastating.

The ripple effects from collapse in real estate – the devastating financial meltdown
Peter Oberois
No one can even imagine the effects of the real estate collapse and the future meltdown of the mortgage banking system. The loss is staggering. There is very few financial institutions that did not get exposed to sub prime lending.
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Merger Mania creating a bubble of the third kind – how will the mega crash look like?
Sam Adelton
The financial meltdown will make the G8 and other emerging nations meet in a hurried fashion. Some how the central banks will halt the collapse temporarily but in the next phase when the central banks are proved wrong, the collapse will be devastating.
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A great buy opportunity for US Dollar as trade deficit widens
Peter Oberois
Analytics and quantitative models predict with more than 90% confidence level a 30% gain in US Dollar and Dollar based debt assets in the next two years.
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Stocks begin down trend as bonds begin up trend - bigger trade deficit bullish for bonds
Sam Adelton
The bond market is showing signs of a solid upward potential. The stock market has valuation problems as deflation take hold of the economy.
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Long tern bond futures signaling deflation and 30% drop in yield over next eighteen months
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The ten-year notes and thirty-year bonds gave a super bullish signal today.
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Inflation from Asia stagnation from America and Europe – the world economies start suffering the after effects of global stagflation
Sam Adelton
The stagflation is the byproduct of supply side trickle down economics and the effects of the same have started hurting the financial markets. Stagflation actually started in 1981.
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