Let’s see: We swept the first mortgage crisis under the rug and we’re pretending the second wave isn’t coming, we refused to offer constructive help to people losing their homes, we’ve created a permanent unemployment class without benefits and oh yeah, we still allow bankers to rape and pillage. (Oh, and we’re paying for other corporate malfeasance.)
What could possibly go wrong with the economy?
May 18 (Bloomberg) — Investors should sell U.S. stocks because the market is at risk of a “major crash,” Richard Russell, editor of the Dow Theory Letters newsletter, said in a note to subscribers today.
The decline would follow should the Dow Jones Industrial Average and Dow Jones Transportation Average fall below their May 7 levels, he said. They have risen 1.3 percent and 2.8 percent versus their closing levels that day.
“If I read the stock market correctly, it’s telling me that there is a surprise ahead,” Russell wrote. “And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead.”