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May 7, 2009

The Bank Stress Test ...Do you Believe It?

We just got the latest video of Adam Hewison, it is outstanding for the time, just check it out, and take your own conclusion, but do not miss it.
Fernando Guzmán Cavero

The bank stress test, do you believe it?
Since my return from holiday, I have been scratching my head wondering why the market (in this case the S&P) has moved so high for little or no reason. The economy still appears to be very much on the defensive with unemployment rising and the business environment still on a slippery slope.
I made this video before the stress test was announced and I suspect that all of the stress test leaks have already being discounted by the market.
My new video is a follow-up from my April 14th video that I made before I left for New Zealand. If you have a few minutes, please take the time to view it. I think you will find it interesting that my observations may conflict with current market trend.
With the Obama honeymoon coming to an end, we are going to see how the markets move without government influence. There has never been a government that was able to dodge a major business cycle… and this one sure is a doozy.
As always, the videos are available with our compliments. There is not registration required.

To view it click HERE

Please let us know your thoughts on our blog.
All the best,
Adam HewisonPresident, INO.comCo-creator, MarketClub

Howard Miller's Report: From Global Bullion Trading Group:

This is the other face of the crisis expressed by the market, which still dubious about about its floor

Good morning everyone, The metals continued to climb in overnight trading in advance of today's official release of the Bank Stress Tests...According to the Wall Street Journal banks will need another $67 billion in additional capital in order be able to handle another steep economic decline........As for the metals; Silver is up another 25 cents at $14.03.....Gold is $7.00 higher at $918.00.....Palladium gained another $7.00 to $235.00......Platinum is $1160.00 up $30.00....The gains in Palladium and Platinum come despite yesterday's reported $6 billion loss by General Motors... In currency trading the Euro is 31/100ths of a cent higher versus the Dollar while the European Central Bank sits behind closed doors deciding the future of their interest rates...That decision will be announced this morning.....Last on the Euro $1.3319......Crude Oil continues to climb as a growing number of economists are predicting the worst is already over with regards to the current recession / depression (depending on your viewpoint).....Last on Oil $57.96 up $1.62 per barrel......Stocks ended yesterday with the Dow up another 101 points at 8512....This morning the Dow is being called to open another 49 points higher.....A quick look at today's economic data is in order.....The Weekly Initial Jobless are expected to come in at 635,000 versus 631,000.....This is at odds with yesterday's ADP Employment data which clocked in at just under 500,000.....Also keep in mind that today's weekly data is a mere precursor to tomorrow's all important Non Farm Payroll data....Today's other important report comes in the form of Consumer Credit....Last month we got a massive contraction in credit spending with a decline of $7.5 billion.... This month that decline eased with a drop of only $4 billion....Once again; bad but better....It seems to be a growing mantra......Lets see how it all works out....That's it.....Howard

BBC BUSINES:" US banks 'safe from insolvency' "

No US bank being screened by regulators is at risk of insolvency, US Treasury Secretary Timothy Geithner has said.
No US bank being screened by regulators is at risk of insolvency, US Treasury Secretary Timothy Geithner has said.

To read full story, click HERE

What do you think? Let me know.