Beach's Predictions

I pass along the following in its entirety for your consideration. I have corresponded with Bruce many times, we disagree on most matters of politics and religion. I find him interesting for numerous reasons. First he has dedicated much of his time and treasure to a project called Ark Two - a survival project that he hopes will help restore civilization should some major calamity come. Should said calamity never occur folks will just say Bruce was a nut - if, on the other hand bad things really do befall mankind Bruce and his team are ready.

I also find it interesting that Bruce spends a heck of a lot of time analyzing intelligence. He pours over obscure news stories that most of us miss. He has contacts around the world that send him tidbits of information. He very frequently pieces these bits together to make plausible assessments. He is often wrong - that is the problem with information, it can be slippery and deceiving. All the same, I am convinced that one day he will be right about one of these events. Sign up for his newsletter if you want. It is only an occasional thing - not something that fills up your inbox. I swear, one of these days he is going to get it right with one of these predictions.

BTW - it is almost 0900 back on the East Coast and I see no signs on the newswires that the predictions below are going to pan out - but who knows , perhaps this is something that will take a few hours to build; then again maybe not.

____

I think - This could be it !!! For the stock and financial markets.

I have been watching this for the last several hours.

Called after mid-night two friends that I consider to be experts. Have never done that before.
Means that I think it is serious even if I can't find confirmation.

Have tried to check early overnight stock market news reports from Asia. Find nothing.
Zip.
Zero.

That is either unusual itself -or it is very calm.

Crazy - that I would be saying something that no one else is saying. My expert friends would only say - "Well, we will know tomorrow if you are right."

So, here it is to tomorrow - and you are reading this. Was I right?

At this moment it is 3 a.m. when I am writing this. What has me so excited.

Well - look at:

http://www.markit.com/information/products/abx.html

It is dated Oct. 17th. That is now yesterday. I think it was after the stock market closes activity.

What I think it is - is the DERIVATIVES market.

What I THINK that it says is that the derivatives market has collapsed.

Here is the chart

Index Series Version Coupon RED ID Price High Low
ABX-HE-AAA 07-2 7 2 76 0A08AHAD4 93.53 99.33 89.94
ABX-HE-AA 07-2 7 2 192 0A08AGAD6 75.25 97.00 75.25
ABX-HE-A 07-2 7 2 369 0A08AFAD8 47.13 81.94 47.13
ABX-HE-BBB 07-2 7 2 500 0A08AIAD2 30.69 56.61 30.69
ABX-HE-BBB- 07-2 7 2 500 0A08AOAD9 26.88 50.33 26.88
ABX-HE-AAA 07-1 7 1 9 0A08AHAC6 93.88 100.09 87.75
ABX-HE-AA 07-1 7 1 15 0A08AGAC8 68.81 100.09 63.19
ABX-HE-A 07-1 7 1 64 0A08AFAC0 35.75 100.01 35.75
ABX-HE-BBB 07-1 7 1 224 0A08AIAC4 25.75 98.35 25.75
ABX-HE-BBB- 07-1 7 1 389 0A08AOAC1 24.50 97.47 24.50
ABX-HE-AAA 06-2 6 2 11 0A08AHAB8 95.17 100.12 90.03
ABX-HE-AA 06-2 6 2 17 0A08AGAB0 81.06 100.12 73.94
ABX-HE-A 06-2 6 2 44 0A08AFAB2 49.66 100.12 49.66
ABX-HE-BBB 06-2 6 2 133 0A08AIAB6 29.06 100.59 29.06
ABX-HE-BBB- 06-2 6 2 242 0A08AOAB3 25.63 100.94 25.63
ABX-HE-AAA 06-1 6 1 18 0A08AHAA1 98.17 100.38 94.97
ABX-HE-AA 06-1 6 1 32 0A08AGAA9 93.81 100.73 84.64
ABX-HE-A 06-1 6 1 54 0A08AFAA7 79.80 100.51 69.22
ABX-HE-BBB 06-1 6 1 154 0A08AIAA4 49.88 101.20 49.88
ABX-HE-BBB- 06-1 6 1 267 0A08AOAA2 40.99 102.19 40.99

And here is my own analysis chart with the numbers that are non-meaningful to me
turned into reference numbers we can use.

## Price High Low
01 93.53 99.33 89.94
02 75.25 97.00 75.25
03 47.13 81.94 47.13
04 30.69 56.61 30.69
05 26.88 50.33 26.88
06 93.88 100.09 87.75
07 68.81 100.09 63.19
08 35.75 100.01 35.75
09 25.75 98.35 25.75
10 24.50 97.47 24.50
12 95.17 100.12 90.03
13 81.06 100.12 73.94
14 49.66 100.12 49.66
15 29.06 100.59 29.06
16 25.63 100.94 25.63
17 98.17 100.38 94.97
18 93.81 100.73 84.64
19 79.80 100.51 69.22
20 49.88 101.20 49.88
21 40.99 102.19 40.99

Look down the columns and here is how I read it.

The PRICE - is the closing price.
The HIGH - is probably near the opening price.
The Low - is most often the closing price.

#1 is not really bad news. One can only say that of 6, 12, 17, 18 These five make up a quarter of the market - and while they average about five percent off (of what I suspect to be near the open) still that may be A LOT in this kind of market -

01 93.53 99.33 89.94
06 93.88 100.09 87.75
12 95.17 100.12 90.03
17 98.17 100.38 94.97
18 93.81 100.73 84.64

the rest have typically LOST 40% to 75% of their value. In other words - if I am correct - then the derivatives market has COLLAPSED with an average loss of over 50%.

I have been warning you about this for a month.

I told you about the crisis in Canada.

http://tinyurl.com/2svc2m

with the following update.

http://tinyurl.com/2fup2n

And here was still more on this thread in the NY Times - what is now three days ago.

http://tinyurl.com/3yumyo

But none of this matches today's news - if I am correct.

It actually started in July. August 16th agreement day - was the big day in the eyes of those
who watch these things.

The August 16th agreement gave the Canadian Hedge Funds
90 days until Oct. 15th to get their act together.

They said they couldn't do it. They were told they had to do it. They said they couldn't do it. They were told they had to do it. They said they couldn't do it. They were told they had to do it.

"Look," said the Hedges, "our investors are very sophisticated - and they are not going to allow a fire sale of our stocks."

They thought they were TOO BIG to be allowed to fail.

They were WRONG.

I could tell you a lot more about this. I HAVE told you a lot more about this. Some of the sophisticates that I called said - "I have faith in the PPT (Plunge Protection Team) - they have met crises before and they are not going to let the world collapse."

They must think that I am Chicken Little. Chicken Little Beach.
"The sky is falling. The sky is falling. The sky is falling."

Here it is -now 4 a.m. and I am out here by myself screaming this. Everyone else is sound asleep. And hopefully, when you wake up in the morning and read this tomorrow - you can have a good laugh.

Now 4:30 a.m. I sit hear alone reading other news. A revolution about to happen in Pakistan. Turkey's parliament okaying invasion of Iraq. US calling up 8 Guard units. China frothing at the teeth about the Dalai Lama. Both US and Russian military forces going into major exercises. Special envoy to Washington from Israel. Ten thousand Jewish families in Iran sent letters yesterday by Israel telling them to leave everything and get out.
Major chest thumping from Russia and Iran.

People say I should get a life. Maybe I should get some sleep.

Peace and love,
Bruce

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