Tuesday, June 14, 2011

SOS Bear Market Correction or Bull Market Correction?


First chart shows that big chunk of the oil price is based on speculation (non genuine purchaser or seller)

The second is the zenith of Debt at USD65 Trillion, excluding unfunded liabilities by federal governments USD300 Trillion and derivatives of USD600 Trillion.

When the debt reach its peak, there is no other way to go but to deleverage. Lots of paper money will "poof" or disappear. Say, one day the market is worth USD13 Trillion, few days down the road is USD11 Trillion.

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