Friday, April 17, 2009

Economic heads up

Good morning, boys and girls, I'm the Freeholder and here is your Daily Dose of Doom. :-)

A few days ago I warned you not to mistake the current uptick in markets for the end of the bad times.

Patricia Chadwick warns that the financials are going to be hit hard by a rapid rise in credit card debt defaults. If you been reading Whiskey and Gunpowder or The Daily Reckoning, you already knew this, so take this as the "two minute warning".

The current rally is not occurring because investors are starting to buy again, but because of traders trading. This means that this market bounce can be canceled on a moment's notice--literally.

Folks, this isn't over--not by a long shot. There's no need to panic, but there's also no need to get sucked into a false recovery. Keep your wits about you and pay careful attention to the news.

And that's it for your Daily Dose of Doom.

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