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I have been warning that economic calamity was just around the bend for the better part of 2 years. The mainstream media has been putting off using the "R" word until it was plain as day that our ecomony was shrinking not just locally, not just nationally, but globally.
The credit bubble began collapsing in the housing market and has crossed over- affecting consumer spending at every level. Corporations going bankrupt are now unlikely to be able to obtain loans to restructure to continue business on a new slate... and will undoubtedly seek the Federal governments aid to stay afloat.
After robbing Americans to the tune of about a Trillion dollars, congress is going to have to tread lightly about who they decide to give taxpayer dollars to. Household names built on decades old businesses are about to vanish. With those businesses will go thousands of jobs and unemployment will rise.
These factors translate into higher taxes, lower wages, and rampant inflation. The really scary thing though is that I believe this was likely done by design rather than incompetence.
How better to buy cheap, than to create circumstances where the markets will generate the price levels you would like to buy?
Real estate, commodities, and stocks are all lower- but they arent low enough to plunder. To get these things at 'fire sale' prices, the powers that be are going to have to starve some people, throw some out on the street and flood the economy with nearly unspendable cash.
Between 1929 and 1932 the market lost 90% of its value. Here in 2008 the market has lost about 40%- I dont expect to see the market to go to 1400, but continued losses I predict will take us to a Dow 5000- Unemployment is going to drain benefits, particularly here in California.
As we hit bottom I would expect to see a renewed interest in pursuing the war on terror or some conflict with new or old enemies to invest our resources in, thus reducing the population of eligible breadwinners. History in effect, is destined to repeat itself.
The credit bubble began collapsing in the housing market and has crossed over- affecting consumer spending at every level. Corporations going bankrupt are now unlikely to be able to obtain loans to restructure to continue business on a new slate... and will undoubtedly seek the Federal governments aid to stay afloat.
After robbing Americans to the tune of about a Trillion dollars, congress is going to have to tread lightly about who they decide to give taxpayer dollars to. Household names built on decades old businesses are about to vanish. With those businesses will go thousands of jobs and unemployment will rise.
These factors translate into higher taxes, lower wages, and rampant inflation. The really scary thing though is that I believe this was likely done by design rather than incompetence.
How better to buy cheap, than to create circumstances where the markets will generate the price levels you would like to buy?
Real estate, commodities, and stocks are all lower- but they arent low enough to plunder. To get these things at 'fire sale' prices, the powers that be are going to have to starve some people, throw some out on the street and flood the economy with nearly unspendable cash.
Between 1929 and 1932 the market lost 90% of its value. Here in 2008 the market has lost about 40%- I dont expect to see the market to go to 1400, but continued losses I predict will take us to a Dow 5000- Unemployment is going to drain benefits, particularly here in California.
As we hit bottom I would expect to see a renewed interest in pursuing the war on terror or some conflict with new or old enemies to invest our resources in, thus reducing the population of eligible breadwinners. History in effect, is destined to repeat itself.
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