What's also clear is there are a lot of Republicans who are also out there talking down the economy - with the absurd hope that sabotaging our own country's economy will help elect Republicans later.
Heck with that.
Republicans need to stop the doom and the gloom, and get out front of Americans presenting a vision for America.
Which doesn't involve soup lines.
Buy at 6500, the ride down isn’t over.
...Clear?, it’s been clear for many moons, puttets on the left, puppets on the right, one puppetmaster...
...Clear?, it’s been clear for many moons, puttets on the left, puppets on the right, one puppetmaster...
On the drive in for entertainment purposes, I tuned into Airhead America just to see what the meathead Bill Press was saying about the economy. He was stating its the fault of the press that the market is tanking. Said the main stream media was talking down the economy because they wanted it to fail. I was thinking wait a minute, this downturn started happening months ago with the mortgage industry problems. It was Bush’s fault until January 20th but after Obama becomes President it is NOW the fault of the media?
Gold (and ammo) are all I’ve been buying and will continue to buy. The stock market is going nowhere for years to come.
RE “Republicans need to stop the doom and the gloom, and get out front of Americans presenting a vision for America”
Some truth to that but they also need to call Obama out for vrunning down economy, attacking businesses, make him own stock market crash and 401K destruction.
The closer to election day the more important positive talk is, now it’s not as important because we have no more power.
There also is the very good reason for talking down the economy is that the economy actually is not just bad, but awful, and getting worse in a hurry. And this isn’t just Democrats and Republicans talking.
The final numbers for the DOW, before this is over, may be as low as 800-1500, for years.
Structurally, our entire economy needs to change back to a pay as you go economy, which it was before the Great Depression; because the easy credit-leverage experiment since that time is dead.
The US is no longer able to pay off its national debt, so one way or another it will have to default on about $15T. This means that of the big four parts of the federal budget, Social Security, Medicare, Medicaid and Defense, the first three are done. Defense will likely have to be cut from between 25% (Barney Frank estimate), and 50%, the pessimistic estimate.
International trade, except for commodity swaps, is going to halt, and “Buy American” will no longer be a choice. Unemployment in the short term, from 30-50%.
In 2009, tax revenues are likely to drop from about $3T to less than $2T. And several outstanding economic bubbles are going to eviscerate those funds. In 2010, perhaps $1.5T or less.
In no particular order, the business real estate market, the alt-a and ARM mortgage markets (1.5 times the size of subprime), the pension funds, a heck of a lot of hedge funds, the commercial and municipal bond markets, a whole bunch of banks, several lesser bubbles and the grandfather of all bubbles, the Treasury bill bubble, are set to explode.
This is not hypothetical. There is no, zero, possibility of maintaining our economy in its current state. The calculation has to be how to get back to a limited credit, far less speculative economy, with the least amount of pain.
Certainly both the Democrats and Republicans are hoping to manipulate circumstances to their advantage. But this situation is a lot bigger than either of them can handle.
Right. Just like the last time. Except it kept going down. And if you are over 55, you have no more time to buy and wait. We are looking at tens of millions of older Americans who cannot retire. A disaster.