04/07/01 CERBERUS MAULS THE MIGHTY The Daily Reckoning
Weekend Edition
April 07-08, 2001
Paris, France
By Addison Wiggin
MARKET REVIEW: Cerberus Mauls The Mighty
Cerberus, a three headed dog with a dragon's tail who
guarded the gates of Hell in Greek times, paid a visit to
Wall Street Friday... and put an abrupt end to Thurday's
"mighty" rally. For our purposes, the three-headed beast looked eerily like
the "Three E's" we'd come to know so well last fall -
Earnings, Energy and the Economy... Earnings: ...earnings warnings from Radio Shack, Agilent
Technologies and Sycamore Networks... and tough news from
Motorola left these 4 stocks down significantly, dragging
the major indexes with them... Energy: ...a request for bankruptcy protection from the
California utility PG&E saw California's energy crisis
claim its first major victim and... The Economy: ...a Bureau of Be-Labored Statistics report
indicated the unemployment rate rose to 4.3% in March - the
highest level in 20 months. Businesses cut 86,000 in March.
"Payroll reduction" was even more daunting, a number
not seen since the end of 1991. The "R" word is still dancing
on analysts' lips... And what sorrow the beast hath wrought. On Thursay, the Dow
had enjoyed its second-largest one day rally ever - gaining
402 points. But by the close on Friday, Cerberus had reclaimed
126 of those gains... and the week end saw the big board
closing 87 points lower than Monday's opening...down to 9878. The Nasdaq also slipped Friday - down 64 for the day...
down 120 for the week to 1720. Nasdaq investors sufferd a
tantalizing 8.9% boost on Thursday. The S&P 500 lost 23 on
Friday to close the week out 31 points lower at 1128. Markets never go straight up... or straight down. Sell the
rallies. Around The World: In Japan, the Nikkei inched up 0.02%. But
in Europe all markets closed lower...The DAX in Frankfurt
shed 1.4%; The FT-SE 100 in London and the CAC-40 in Paris
dropped 0.4% apiece. The Russell 2000 - an index of smaller companies in the US
- dropped 10 points on Friday to 434. The Russell lost 3.5%
for the week. ADD'L PRICES FOR THE WEEK... Gold: $260
Crude Oil: $27.06
Natural Gas: $5.38
CRB Index: 212
Dollar Index: 114
The Sad, Sad Euro: $.90
British Pound: $1.43
Japanese Yen: $.81
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prattling on about "emergency rate cuts" and the "soft
landing" being orchestrated by Fed chief Alan Greenspan.
The "slowdown" of the economy was meant to happen... now
all he needs to do is twist a knob here...pull a lever
there and we're saved. Everything is going according to
plan, right? Well is it? I'd like to call your attention to a shocking
special report. It's yours free, to consider at your
leisure. But I wouldn't wait too long to read it, because
as you'll see... The man who accurately called the Asian crisis... the
collapse of Brazil's currency... the dot-com wreck...and
the meltdown in tech stocks on Wall Street...is now calling
for a financial calamity of far grander proportions. Please allow me to introduce you to Dr. Kurt Richebacher.
You may have heard Bill Bonner quote regularly in the Daily
Reckoning. - Dr. Richebacher has been described as "the man who
predicted the Asian crisis" by the French national
newspaper, Le Figaro.
- Paul Volker, chairman of the Federal Reserve Board under
Ronald Reagan, proclaimed, "Sometimes I think that the
job of central bankers is to prove Kurt Richebacher
wrong." Unfortunately, that's a very difficult position to be in.
Dr. Richebacher has developed one of the most amazing track
records in the world for predicting economic trends. He saw
the "earnings melt-down" coming, but that's nothing
compared to what he sees coming next. In fact, for the better part of a year he's been
laboriously proving that "The Crisis Almost No One Sees
Coming" is about to rock the U.S. markets and wreak mayhem
with financial institutions around the world... A crisis so far reaching it will could affect your
business, your pension, your investments... even your cash
in the bank. Most investors don't have a clue about the
dangers that lie ahead. Even more dangerous... they don't
care. Worst of all, as the report below indicates, massive
imbalances in the financial system are setting us up for
"the greatest economic disaster in 70 years." In fact...
"The last time [this event occurred]... it wasn't long
before the stock market came down, too. And a recession
that was the worst in the last 25 years. Unfortunately, many investors today hardly remember it.
Most stock brokers and fund managers today have never seen
a bear market, let alone have managed investments when a
bear is devouring portfolios."
"The coming crisis will be much more devastating than 1987.
The imbalances are far worse... and there are fewer options
for dealing with it... because financial markets have
changed dramatically." Simply click on the link below. Not only will you find
yourself more informed -- and prepared -- than the average
investor who gets the bulk of his information from CNBC and
similar mass media sources, but by reading Dr. Richebacher,
you'll also get a chance to profit from unique
opportunities that a situation such as this provides the
very few -- the well-informed. Plus, you'll gain the opportunity to join Dr. Richebacher
as he tells the real truth behind last autumn's Wall Street
collapse... and prepare yourself for the events sure to
come. I couldn't urge you to heed Dr. Richebacher's
warnings any more strongly than I am today. Please take the
time to read this special report right now. Click here: The Crisis Almost No One Sees Coming Addison Wiggin,
The Daily Reckoning
P.S. As you'll see when you follow this link, we've also
prepared three additional reports -- specifically written
with you in mind. We want to bring new readers up to speed
on the real effect of the credit bubble on the U.S. economy
and stock market -- as soon as possible. Should you choose
to join Dr. Richebacher... the three reports, nearly
priceless in value, will be rushed to you immediately.
Please click on the following link right now:
The Crisis Almost No One Sees Coming
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