The coming Depression Part XIV

By , October 5, 2010 8:18 pm

05 October 5, 2010Now and then//1929, 2009//the coming Depression. Part XIVAbout a week ago (20 Sep) I heard on the news that the recession was over in June 2009. It appears that Wall Street liked hearing that because on 29 September the Markets had the best September in 71 years and today it recovered the week’s losses. I’ve been saying for over a year now that we have not seen the bottom yet; be not deceived by these “good news” on nightly TV. I have said this before and it’s worth repeating, “There is nothing of substance in the market place to indicate that the recession is over or that a recovery is in place”. I am sticking to my prediction that a “great depression” is just around the corner. Your broker, Wall Street, the FED, the bias left-wing media and the present administration CAN NOT and will not tell you the truth because it would create chaos for the political and financial systems. They believe and wrongly so that if they can control inflation and keep pumping billions/trillions into the economy that things will eventually turn around, in essence they are simply buying time. I still believe (I wrote in one of the series some time back) that the odds of a long and prolonged deflationary spiral is within 18 months which will lead to the final crash and keep us in a depression for a long time. Everything this administration has done has been nothing more than delaying the inevitable. The trillions pumped into the economy did nothing to create jobs but rather saved big business (too big to fail), saved or provided relief to the unions and bought worthless assets from financial institutions so they could lend money; ( they aren’t lending). Keeping looking for the deceitful statements coming out of the FED, the Treasury and Wall Street, they will always lower expectations so that when the numbers come out they spin the positive and claim that it’s not as expected, this is especially true of the labor department when dealing with the unemployment numbers. Historically a market will drop at least 40% from its high; if our high is 14,000 a 40% drop would put our DOW at 8400. The 14,000 was too short lived for me to consider it our high; I believe our high to be between 10,000 and 11,000 and a 40% drop would have our DOW at about 6600. I wrote back in June of 2009 that our bottom would come in at between 4700 and 5400. But-JUST HOW FAR DOWN IS DOWN? During the “Great Depression” of 1929 the US Market dropped 89%. You say it cannot happen-our NASDAQ had a loss of 80% as recently as 2002 and it is still down 50-60% of its 2000 high. It can and it will happen to the DJIA and S&P and I still firmly believe that it is around the corner. I started writing this series in June of 2009 and have until now been very careful to only state my opinions, provide some date and share my experiences as to why I believe of a coming depression; however, I now feel I should go a little further. Get out of the Stock Market and stay in T-Bills or T-Bonds, get out of banks and find a local Credit Union you trust. The FDIC had 775 problem banks during mid-2010. The stock market is today at its peak of 1999; that’s right, the stock market first reached the 10,000 mark in March of 1999.

If you like this post then please subscribe to the RSS feed.

Panorama Theme by Themocracy