It has not hit bottom yet, folks. We are talking about a dip well BELOW 9,000 coming. The fact is, a HUGE amount of dollars simply vaporized, resulting in what is a sharp deflation of the value of the dollar. The confidence game is not yet restored to the market, and may not be for weeks or months to come.
Meanwhile, we have an election coming up long before that bottom of the trough will be reached.
America is SO screwed. Yet if this country suffers only a severe upper respiratory infection, the rest of the world will surely contract pneumonia, of the most deadly variety.
One thing about it, there will a LOT less money available to arm up and go to war.
This is no longer a matter of too many dollars chasing too few goods and services. This is a matter of having NO dollars to chase ANY goods or services.
Economically, this is FAR worse than 9/11. Even if it has not (thus far) been nearly as bloody.
dollars aren’t vaporized. Only the Fed can do that
it’s wealth that is vaporized. A contraction, not a deflation.
Therefore, something will be occuring that will make the Great Depression look like the Rock and Roll times.
Agree it is likely worse than 9/11 (about 3% of GNP, or the same as the 1970s oil shock). Smoot-Hawley alone accounted for 5% of GNP, but there’s still time for government to get involved and screw this up worse than it already is.
Now is the time to hit Obama on Fannie/Freddie and Obama’s tax policies and how wrong, wrong, wrong he is for the economic future of America.
Hit him now on both ECONOMY AND SECURITY.
Osama bin Laden's stated aim was to destroy Wall St., and bring America to its knees. He wanted to destroy us economically. I trust the huge irony in all of this is not lost on anyone.
We've saved him the trouble and done the job ourselves. All through our own greed and dishonesty. I expect we'll see a video or audio from either bin Laden or one of his acolytes in the near future, making exactly this point.
However, the ultimate humiliation would be if there is massive civil unrest in this country and some sort of large military presence is required to quell it, such that we have to abandon Iraq and bring home the troops, in order to stabilize the situation on our own shores. As bad as 9/11 was, we at least had our dignity and pride intact as we were being attacked from without by cowards who slaughtered innocent civilians.
The present situation is more humiliating because we're imploding from within.
As I said back in March, the head and shoulders indicates a move down to 7,500.
Without a doubt this is worse than 9/11. This is systemic and world-wide.