easywriter05

High Likelihood of a Market Crash

It's pretty clear to me where this is headed. Short term we may have some market rallies and upturns, perhaps some lasting months or more. But long term the scenario is negative. We've had a bull market as long as most of us can remember, but the worm is turning. We've spent ourselves as a country into a massive debt hole for starters--our society now owes $45 trillion, more than 3 times GDP, about $150,000 per man, woman and child--and it's increasing (not to mention the massive bill coming due for social security, medicare and other entitements; we've pumped an increasing amount of our capital back into non productive enterprises (what sort of return are we getting off the Iraq war?), and thanks to Greenspan, Bush and the Congress, spent the last eight years creating the greatest housing bubble--and bust--in decades. The credit crisis is real and will only get worse. It was a nice long party, but the hangover will be even longer--much longer (sorry for the stupid metaphors). Books like The Collapse of the Dollar, Crash Proof, Bulls Eye Investing and others have outlined these problems, but they're generally dismissed as extremists, even as the talking heads and pied pipers lead us to believe another giant rally is just around the corner. I'm not sure we'll have a currency collapse as bad as Argentina in the 90s, or Wiemar Republic/Germany, but we could be in for some tough times...super inflation, rising unemployment, sluggish growth...you know the story. Better buckle up...