Posted on 11/25/2007 1:48:04 PM PST by jrsmc
RHINEBECK, N.Y., Nov. 19 (UPI) -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.
"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."
Forecast: U.S. dollar could plunge 90 pct
(Excerpt) Read more at upi.com ...
The houses are worth what the market is willing to pay.
On a different note, I really do not get why some folks think gold is a financial panacea. Gold is just another commodity, and it too can fluctuate in value. The notion that its value will continue to rise forever is the same sort of linear thinking that created the housing bubble.
“A piece of bread could buy a bag of gold,
I wish we’d all been ready.”
You can’t eat gold. That’s why the SPAM economy is our only hope in the upcoming crisis. At least you won’t go hungry.
The only bet that I'm willing to take is that the Dow/Gold ratio will drop to 5 or less within 5 years or so.
Dow 10,000, Gold $2000 ?
They’ll miss us when we’re gone.....who’ll protect them? Who’ll feed them? Who’ll give them medicine? sheesh....idiots.
True. The lenders may have lent out $400,000 for that $200,000 house but, after foreclosure, the lender still has that $200,000 house.
In theory..., that is correct! However, I remember a friend of mine who, employed by a major lender in Central Florida, had his office walls lined with pictures of what was left when the lender finally repossessed homes!
All plumbing fixtures and wall/ceiling fixtures stripped out, water heaters gone, AC/Heating units gone, drywall ripped out so that copper wiring could be stripped, windows smashed! I won't even mention the plain old vandalism which had no profit motive at all!
Many of the lenders "repossessions" were sold for salvage/land value only EVEN THOUGH THE HOMES WERE ONLY ABOUT 5 YEARS OLD!
There will be many bargains for the ultimate purchasers but, the lenders (and most probably the taxpayers) will really take a hit!
Not all of us.
If the dollar drops 90% in value, Gold would go to more like $8,000 an ounce. I guess that sounded too over the top for the article.
“I am actually concerned about the dollar. Its down 50% more than negating our gains in everything else.”
Well, so am I to some extent.
When I first came to Slovakia in 2002, I got 48 Slovak korunas for one dollar. Today I would get less then 22 SK.
I am now waiting for my FIRST social security check which is said to be “in the mail”. It will be worth half what it would have been in 2002.
On the bright side, I am making money here in Slovakia, and paid in Slovak money.
“Trends Research Institute Director Gerald Celente said, forecasting a “Panic of 2008.”
Would it be cynical to ask what he is selling?
Eat gold? No. But the Israelites once drank it!
http://www.biblegateway.com/passage/?search=Exodus%2032:19-20;&version=9;
What happens if the banks have no buyers. Anyone remember The farm crisis in early early eighties banks finally quit forclosing on bankrupt farms there were NO buyers in south Georgia. It was touch and go with our farm. Several neighboring families lost there entire farm.
HereInTheHeartland wrote: “Would it be cynical to ask what he is selling?”
No, but don’t dare ask why he’s not a billionaire since he claims he can predict the markets.
rabscuttle385 wrote: “Gold is just another commodity, and it too can fluctuate in value.”
Wasn’t it worth well under $300 an ounce in the not so distant past. It didn’t outperform the market then.
It isn’t just that, the lenders have packaged up those $400k loans into CDO’s and other deriviatives, had them rated AAA by ratings agencies in their pocket, borrowed against those “hard assets” with 5-10x leverage and is now left holding these worthless pieces of paper that no-one wants. So that $200k Hard Asset, does not nearly cover the 2-4 million dollars levered against it.
There is a reason why Citigroup and others are writing off billions of dollars.
I never believed in any ‘trend researcher’ or ‘futurist’, especially if they simply extrapolate current situation without looking or arguing at the mechanism of which the trend occur.
There are. All you have to do is go down to the library and read all the books about it.
Hysteria.
She ran off with Buck O'Pop
Bingo! Here is something I have wondered for some time... If these people really believe that gold is going through the roof, why are they advertising to sell their gold instead of buying every ounce they can get their hands on?
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