United States Heading towards a Depression?

Roubini is predicting that the S&P will decline to 625.

Warren Buffet said this weekend that the economy is in shambles.

Glen Beck: "We are much closer to the beginning of this cycle than the end."

Home prices are down 25% from the 2006 peak and will most likely decline another 20%.

I'm wondering what will happen should commercial real estate collapse?

AIG is losing $465,000 a minute. They were insuring $500 billion of CDOs with no collateral

DOW 6000 is the resistance. If the Dow falls under 6000, panic selling will start that could take the Dow all the way down to 4000.

Savings rate has increased to 5%.

Personal spending was up 0.6% in January 2009.

I saw something similiar on Glen Beck.

 

Communism, here we come...

 

China is more capitalist than the US Talk about turning the world upside down.

They like their pork in China but how about this? Just the interest on the $1 trillion Obama stimilus is going to cost $1.6 trillion over the next 10 years.

For instance, the "broadband to rural communities" is a big corporate giveaway. With wireless technology rural consumers can already get broadband. What's the point of laying miles of cables and then giving them away?

 

This BB initiative is a crock of shit! I started my wireless wing back in 99 and sold it in 08. We were the first to provide BB in our state... That is the FIRST TO PROVIDE BROADBAND OF ANY KIND WHAT SO EVER!!!

The last mile is and has been being served for some time now. No one is out of reach of BB PERIOD!!!! Now, thanks to competition and the entrepreneurial spirit of people like myself, the entire state has everything from Wireless, to Cable, DSL, 3G, you name it. I spent years giving talks, speeches, talking to the FCC, speaking directly in front of the Chairman of the FCC as well as making numerous fillings with the FCC to further consumers choice as it concerned broadband. Myself and a handful others were the pioneers in an industry now booming and full of tremendous competition.

We did with without any money from the government btw!!!!!!!!!!!!!!!!!!!!!!!!!

Where the hell as this guy been? Living under a rock, or in a cave eating ACRON's and getting sweet deals on no load financing for large homes from guys crooks???

I see we are now just throwing a trillion dollars at every problem that comes along. Phuck that. Some of us are not going to take this crap.

I'm close to the breaking point with this lunatic.

 

The following link describes the AIG fiasco...

http://www.nytimes.com/2009/02/28/business/28nocera.html?_r=1&ref=business

Its written in a way that laymen can understand it. The damn thing is that propping up AIG is not to support the business....but it is being done to prop up the businesses that bought the credit default stuff AIG was selling.

It was a huge financial industry scam, built on fees for AIG. Unlike any kind of regulated finance, AIG didn't need to put up anything to protect itself on the chance of default.

Essentially fed tax dollars are supporting a large group of unknown financial institutions around the world, in the hope that it keeps the world financial system from collapsing.

Its very ugly.

 

SOLUTION? LET IT COLLAPSE. LET THE SICK PATIENT DIE!!!!

Same solution can be applied to every bank in trouble. Every homeowner in trouble and the Auto Industry.

THEY'VE ALREADY FAILED. NOW LETS LET THEM DIE!!!!

 

For all those people who say let these companies fall, fail, or disappear... I ask are you willing to let

• the US military disappear as you know it
• the US dollar disappear as the world's reserve currency
• the US lose its superpower status
• China and India become more dominant and consume more of the world's resources
• African nations become more successful and kick out US companies and military interests
• Chavez, Ahmadinejad, Mugabe gain more power and influence in their countries and regions

Personally, I don't care (or would be very interested) if any or all of these things happen.

But, it strikes me that people who want to see these companies fail may be the same ones who want to prevent all of the above.

You can't have it both ways.

 

If we have a depression, will we have another world war? Use the war to get out from a depression?

 

You give them way too much credit. People thought all communications on the planet and the internet would collapse if WCOM and UUNET went poop. They did, and life is better than ever in that neck of the woods.

They will be consumed. Its better to let the sick patient die sometimes.

BTW, I agree with BECK this morning. 3000 is the bottom. Way to go Obama.

 

Check out "Fleeced" by Dick Morris where he predicted an Obama Presidency would trigger a stock market collapse.

S&P 625 I believe is an accurate predictation but who knows what panic selling will do if the Dow breaks 6000.

 

I remember hearing something about that.

I don't think the real panic will start until 4000 with the collapse at 3000.

 

I've been taking bets with a few people at work on how low the Dow will actually go. Most didn't think we would go below 7000.

Just makes you wonder how low it will actually go now before we hit bottom and start going back up again. Kinda scary....

 

Great interview today with Jim Rogers by, in my opinion, the best news program in the UK. Channel 4. The presenter seemed in awe of Jim though!:

http://www.channel4.com/news/articles/business_money/interview+jim+rogers/3009962

 

I figured 7500 before dipshit started throwing around a trillion here and a trillion there. Now, I'm not quite as optimistic.

 

Personally I think the dow jones could hit as low as 3500 for an absolute low within 3 years at most IF this things gets real ugly.

 

Here is a lighthearted caricature of the way things are becoming : [ LINK ]

 

Commander DUMBASS George Bush destroyed the economy with 8 years of practice...

and yet...

you have people in here blaming Barack Obama who has been in office less than 2 months.

This whole economy is the responsibility of George Bush and Congress. If you can't run the country in 8 years as President, what kind of failure is that?

George Bush failed at everything in life and his record followed him right into the White House.

That fool will go down as the greatest mistake the US has made since Nixon (yet another Republican).