When Will the Bailout Bubble Burst?

The only bull market these days is in bailouts. But that one
will burst soon enough.

The bull market is over, but the bailout craze is running at “fever pitch.” In less than a month, the Federal government moved to issue a trillion dollars in U.S. Treasuries to back bailout loans; took over Fannie Mae and Freddie Mac, as well as the world’s largest insurance company, American International Group (AIG); and banned short selling on financial and other stocks. As these pages discussed last month, it won’t work. ~ October 2008 Elliott Wave Financial Forecast

You should not miss the latest Elliott Wave Financial Forecast, published in the midst of the biggest financial bailout plan in history. In it, you’ll discover:

• The facts and evidence showing that the markets do not and are not waiting for government help; they’re moving on without it.
• The bailouts and short-selling ban: why both of these badly misguided interventions are already backfiring.
• Why the government will never be able to achieve the goal it desires most in this crisis: namely, to "prop up confidence."
• What President Bush said that made us do a “double-take” (hint: we look back to Bob Prechter’s Conquer the Crash as our reference).
• What wave structures in the DJIA and Nasdaq say for near- and intermediate-term price action.
• Why the government is the ultimate indicator of crowd psychology.
• The inevitable future of the credit default swaps (CDS) market.
• What the U.S. bailout puppet masters could learn from the Japanese.
• Important observations about still-hopeful investor optimism.
• The important distinction between getting a return on your money vs. getting a return of your money.
• The important resistance level to watch in silver.
• Poignant notes on the economy, deflation and cultural trends.