Posted on 08/29/2009 1:08:42 PM PDT by Welshman007
For the past few months I have been encouraging readers to do their own research on the U.S. economy rather than rely on the rosy picture being painted for us by the Obama administration and the talking heads on TV news.
Obama and his minions would love for us to believe that 'recovery is just around the corner,' and 'we are on the brink of a rebound,' and other such nonsense.
Indeed, the stock market seems to back them up.
However, the stock market was up significantly in the months leading up to the big crash of 1929. This is no indication that a train-wreck isn't about to occur.
(Excerpt) Read more at examiner.com ...
Like in 1929, I forsee a significant correction occurring in the fall.
With real unemployment at 16% and no real growth prospects in the short term, consumers will continue to hoard their cash and will not participate in a holiday retail season. That will add pressure on the commercial real estate sector, which will tilt more banks onto the FDIC (which itself needs a big bailout).
Worsening of the fed’s balance sheets will tank the dollar and scare foreign investors away from treasury auctions, which will drive up necessary commodities and interest rates.
Financially, this winter will be a long and cold season. It’s best not to participate in it, if you have that option.
My financial advisor, a conservative Rep, former USAF pilot with a MBA from U PA says the leading indicators he sees have not been this positive since 1971. The bad stuff is 10 yrs out. He says buy - so does Warren Buffet.
What gives?
ping
Like, maybe, buy from Buffet?
And throw Obama suggesting 70% marginal tax rates on the middle class.
Didn’t say upper class. Just the middle class.
Look for a second tanking of house prices.
Well, what was he telling you in Dec. 2007?
Good point - he works for a major house - very well respected. He was very positive then, too - just like almost everyone else, and consistent with his houses’ view.
Didn’t the economy tank after 1971?
I guess he sees a new “bubble”. A bubble brain economist.
bookmark
I don’t know - what did the market do from 1971-1975?
CNBC had an interesting commentary the other day: the panel couldn't figure out why Buffett was buying now unless he's playing for the long haul (which is what he does) 5 to 10 years out.
All were pretty unanimous that, although the short term looks pretty fair, we will have the mother of all corrections in late '09 early '10, and then very slow growth for at least 2 to 3 years.
Take it for what its worth....advice on the economy is all over the map. All I know is I don't trust Obama/Geithner/Summers. Their plan doesn't include properity!
Easy...he works on commission.
In 1974 and 1975, inflation was around 14%.
also bookmarking until after the funeral
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