Stock Market collapse: Prepare For The Bear

[Crazy Buddhist]

DJI closed 50.145% down on peak last night. .... told ya lol

[Drum Thumper]

DJI closed 50.145% down on peak last night. .... told ya lol

And we all still have internet access.

[Crazy Buddhist]

And we all still have internet access.

Indeed we do ... but twas not me who suggested we wouldn't ... all I said was that the market would fall to below 50% of peak. It has, the world has not ended, and it probably has another 2 - 3,000 point drop in it yet.

[Quakken]

We're looking at deflation and job loss mostly, aren't we?

[nevermind1534]

We're looking at deflation and job loss mostly, aren't we?

Inflation and job loss. Maybe some stagflation.

[Drum Thumper]

Indeed we do ... but twas not me who suggested we wouldn't ...

True, just felt the need to take a potshot at Airbozo lol.

This too shall pass.

[Crazy Buddhist]

Indeed it will pass.

Probably stagflation rather than deflation but who knows. Problem for America is relatively little manufacturing, and in the great depression 90% of people were already self sufficient of food ... but of course they were trying to avoid deflation so ploughed crops into the ground to avoid prices falling .. (nice trick) hence the starvation of approx 7 million Americans.

Anything Government does makes it worse. Obama is not changing much. Geitner and crew were in on the financial gravy train on the way up ... now they will save their banking buddies with more of the same and all get jobs in banks when they leave the administration - possibly the only institutions still solvent after this mess up of a rescue plan they are implementing. Almost certainly the US Government faces insolvency.

The sheer increase in money supply makes hyper inflation very likely as an outcome. And the dollar will collapse .. only a matter of time. It's not looking good.

If on the day I published the first advice this perfect storm was coming someone had owned assets worth $1,000,000 - half in real estate with a 50% mortgage, 40% in a diversified stock and bond portfolio and 10% cash, their NW that day was $750,000 after debt.

If they did nothing and spent what they earned since:

NW now ~ $450K depending on the house valuation - drop in NW of 40%

If ... the same person sold everything that day, paid off the mortgage, rented and bought gold (risen from $665/oz to $940/oz) with everything but their cash reserve, they would have put $650K into gold at $665/oz now worth $940 oz valuing the gold at $918K + 100K cash =

$1,018,000 - an increase of 35% in NW.

[Crazy Buddhist]

We're looking at deflation and job loss mostly, aren't we?

http://imgsrv.kfwb.com/image/kfwb/Us.../rosenberg.pdf

Merrill Lynch agree: 3 - 7 years of deflation in the US market. Scary report, good logic, well thought through.

[Crazy Buddhist]

[TheGreatSatan]

Gold rose $50...


The dollar is S**t

Thank you morons who voted Dem