Five Impossible Thoughts After Breakfast

|
Includes: BAC, C, DIA, GLD, SPY
by: Frugal Millionaire

Everything is possible now with the unraveling speed of Wall Street's 700 trillion derivatives. Which of the following scenario may come true? Maybe all of them.

  1. Dow at 3500 in 2011.
  2. Gold at 5000 in 2016.
  3. S&P 500 bottoms at 400.
  4. The economic depression lasts more than 20 years until 2032/2033. This is not coming from me, but from the best economist that I know.
  5. All major banks nationalized at 80% or more, with stocks trading at penny levels by the end of 2009, continuing to extract hundred of billions every quarter from taxpayers to cover their derivative losses. Why is there no one outraged by benefits going to all the counterparties of the banks? The losses of the banks are the gains for the counter parties of the banks, which are being paid by all the US taxpayers, and eventually by the entire world through monetization and inflation.

My own crystal ball is showing me that the stock markets will literally plummet another 50% to 60% in the second half of 2009, deflating everything until 2011, after which inflation gradually accelerates towards 2016, and wipes out all the cash holders. I predict in less than 15 years, there will be a hungry and unemployed mob rioting in the streets of Washington DC.

The other day, I donated more to Ron Paul’s call on fighting against misusing of taxpayers’ money. The American Republic is becoming a farce of preferential money distribution. Although intellectually I believe that US will not come out of this unstoppable economic mess until wrecking itself, emotionally I must “do my part” of trying to turn things around. Who else will turn USA around, if everyone of us don’t stand up and fight together? There will be no one saving this country from even dire economic except us.

I understand that it sounds almost stupid to consider the impossibility of my little donation and my lonely voice making any difference to the fate of this nation. But when I ask “who else” to myself, I think I might as well begin with myself, joining hands with Ron Paul’s campaign. I’m literally a “hopeless romantic”. But who says (my) love (for the nation) needs to be logical?