Thursday, September 25, 2008

Dow 11,000 & The Crash?

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The DJIA bounced back above 11,000 today closing just above the psychologically important level. I thought that we'd get more of a countertrend rally before a full-scale panic would take hold given the attempt by authorities to keep the financial system afloat with a $700 billion bailout. However, it looks like we might fail right here.

Tonight, the proposed bailout plan ran into serious political trouble, and Washington Mutual, America's largest thrift, was taken over by the FDIC for resale to JP Morgan....the largest bank failure in U.S. history. This bad news might be the straw that breaks the back of the global financial system that's been teetering on the edge of the abyss since last week's news of the failure of Lehman Brothers, the takeover of Merrill Lynch by Bank of America and the $85 billion bailout of AIG, the world's largest insurance company. The collapse of America's global financial empire over the past year is now entering an acute phase of panic and chaos.

Given tonight's financial 'historical shocks', Asian stock markets are starting to selloff and U.S. stock futures have turned sharply lower. The possibility of a Black Friday and/or Black Monday is rising.....a pattern that would be consistent with Chris Carolan's discovery of financial panics climaxing just before the new moon of the 7th lunar month and/or the 8th lunar month. The new moon of the 7th lunar month occurs on Monday September 29th and the new moon of the 8th lunar month occurs on Tuesday October 28th.

However, I would not discount the possibility that the U.S. stock market will continue to rebound from it's still oversold condition for the next couple of weeks and the focus of concern for a panic should be in the second half of October.

I deeply pray that this phase of the crash of Western Civilization will be limited to financial and economic affairs, but I will reiterate here my warning for the potential of global war. I believe the window of greatest concern for war in the immediate future will be between the October 14th full moon and the October 28th new moon, as specified in my September 11th crash alert.

If there are historical developments suggestive of global war that erupt in the near-future, e.g., a major conflict breaks out in the Middle East like I supernaturally foresaw in 1991, then people need to assume that a collective suicide attempt in the form of global nuclear war is a likelihood this autumn and take precautionary measures accordingly.

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