Daneric40

Preparing for the Fall

I agree with the author in that the market has had a false bull rally coming of its earlier lows and will indeed find a new but not until later this year. My prediction has always been that it will be in November of this year, 2008. I do predict a general malaise for the next few weeks and then in July, the market will reach a new low, but this low will not be the final one. Everyone will THINK its the new low and then some money will pour into the market and we'll have a mini-bull rally from August until Octoberish.

Then a new crash will occur because by then it will be apparent that inflation, the housing depreciation and high oil prices will have dug deeper into the economy more than anyone originally thought.

And we will all know that we will be in a recession (long and nasty) that will not recover until late 2009, early 2010.

And even then P/E ratios will continue to adjust downward and commodities will continue to rise until the year 2017. That will mark the end of the bear market that started in 2000. By then P/E ratios will be much lower and American society will have changed a bit.

Now am I supposed to stay in cash until the year 2017?

Or until November 2008? Which is it because I believe what I said will pan out to be correct.

There is always a bull market even in a bear market. Even when the market crashed 400 points, there WERE gainers.

So this article is a mixed bag. Whats an investor to do? What do you do with your 401K when the crappy index funds you have available all lose money over the long term?

When the SPX is LOWER in the year 2017 than it was in the year 2000, how are you supposed to build wealth?

You become a SMARTER investor. But yeah he is probably right, a lot of people will get hurt. Keep your 401K in the "stable valur fund and get that 3-4% steady every year is the best you can hope for.

Bankruptcy Reform Act Finally Blows Sky High

PS - The bankrupcty reform act was mainly lobbied by (for years), and intended for the credit card industry because of all the abuse they were taking. People would dump all there debt on CC's and then declare bankruptry knowing full well the CC's would get washed away. Its bullshit liberalism like i said. It ain't like my pop's generation where they took responsibility for their actions.

Bankruptcy Reform Act Finally Blows Sky High

Its a crap ruling. So now if I am a homeowner with some money problems I can expect to get it flushed down the toilet, scott free. I still believe in personal responsibility. Banks lend money and when they WERE being tightfisted about their loans everyone cried "FOUL"! (discrimination, etc.) Yeah, there are snakes at the financial institutions but hey when has this ever NOT been in the history of mankind?

The very act of taking out a loan incurs risk on both the lender and the borrower, however the lender certainly didn't put a gun to anyone's head. And the borrower typically lies and plays innocent thru the whole process knowing full well usually that they don't deserve the money (hence they lie).

But the borrower KNOWS the terms of the arrangement. They place TRUST in the bank that they will provide the money at the stated terms (which they do).

And if the bank does not lend the money, the same lying borrrowere will go on their local news and slam the bank. So after years of this crap, the banks said fine, you wnat the money, we'll give you the money, have fun.

This is all actually a product of modern liberalism. Liberals don't ever take responsibility and thats what this is too.

The ruling is crap, and ya know who suffers the most? Us responsible people. I'll have to pay for that lying bag o shit's chapter 7 mortage. Thanks Judge!