Happy Birthday, Mr. Bear

The Daily Reckoning

Weekend Edition

March 10-11, 2001

Waterford, Ireland

By Addison Wiggin

MARKET REVIEW: Happy Birthday, Mr. Bear

The Nasdaq celebrates the one year anniversary of it’s peak today – down 57%. On March 10, 2000 the Nasdaq closed at 5048…Yesterday, the Nasdaq fell 115 to 2052 – its lowest close since Dec. 17, 1998.

The Nasdaq’s 57% plunge has wiped out some $40,000 dollars per US family.

The ‘burn rate’ is having its effect on the stock buying public at large. Last month, investors took $4.6 billion more out of mutual funds than they put in. That’s the first full-month net outflow since August 1998. (Reuters)

On mixed news about the economy and earnings, the Dow also shed 213 points Friday to close at 10,644, ending five consecutive days of positive gains. The early week rally helped the Dow close up 178 for the week. The S& P 500 dropped 31 for the day to 1233, ending the week all but even.

Labor Dept. quants also reported that 135,000 new jobs were added in February, almost double what analysts had expected. That figure casts doubt on the likelihood of continued rate cuts from the Fed later this month.

Markets Around The World: Germany, Bratain and France all lost a bit more than 1%. the Nikkei in Tokyo dipped another 0.2%…

The Russell 2000 at 473, lost 3 for the week.

ADD’L PRICES FOR THE WEEK: Gold Strong, Dollar Holds Its Own

Gold: $271 up $7 for the week…

Crude Oil: $28.01 up a little

Natural Gas: $5.07 down a little

CRB Index: 222 –

Dollar Index: 111 –

The Euro: $.93 –

British Pound: $1.46 –

Japanese Yen: $.83 down 1

FLOTSAM AND JETSAM: In case you didn’t get it…


Dear Daily Reckoning reader,

Following every speech by Greenspan you hear the mass media 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 Richeb?cher. You may have heard Bill Bonner quote regularly in the Daily Reckoning.

– Dr. Richeb?cher 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 Richeb?cher wrong.”

Unfortunately, that’s a very difficult position to be in. Dr. Richeb?cher 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. Richeb?cher, 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. Richeb?cher 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. Richeb?cher’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. Richeb?cher… 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

The Daily Reckoning