Larry: the sky is falling!

Larry's formulas are at it again. They predict:
1. the failure of the Euro;
2. the breakup of the EU;
3. double dip recession;
4. a drop of the DOW to 9,000;
5. a slaughter of the commodities including silver and gold.

Curiously, Larry tells us that the FED can do moreless anything it wants: 1. reduce bank reserve requirements; 2. force the banks to lend; 3. buy stocks and bonds and, of course, print more Dollars. What the FED can not do is print more money and reduce the amount in circulation at the same time. Not unless it sequesters the new money in the banks by paying the banks interest (as it is doing now).

Larry's thesis is that we are heading into the same type of environment as 2008, when everyone was liquidating assets to get cash. In such an environment even gold is sold off. However, in 2008 the FED was working on creating an economic stoppage to elect Obama. Recreating 2008 will not get him re-elected.