You know, I've been watching the economy and quite frankly, I'm scared. I think in the next few years we may have another "1939" here in the US if you get my drift. I'm worried the value of the dollar will continue to plunge. My gut tells me that I need to stock up on a lot of Gold and Silver. If the real estate market bubble pops like Greenspan is saying, If I have a bunch of gold I could get houses for pennies on the dollar. I also want to buy Google stock. What do you guys think? What are you prepared to do in the event of a market crash?
Irrespective of what happens to USD, I feel Gold has a lot of upside in medium - long term. Many analysts believe that Gold can see a great rally from current levels.. http://www.resourceinvestor.com/pebble.asp?relid=15091
sachin410, I clicked the link you placed and went to the page and read the article. It indicated that Asian banks are "overflowing with US dollars." Could this mean at some point in the future they can dump the dollar?
We are in the strange situation where (mainly) Asia is currently financing the consumption of American citizens. The only reason they still do this is because it's the only way to keep demand from the U.S. at this high level (meaning Asia can export lots of products to the U.S.A.) If Asia would start dumping dollars they would also hurt themselves indirectly (weaker U.S. demand for foreign products) How long can this continue? Well, it seems that most "experts" agree that this pattern is not sustainable. Also there will come a point when Asia will have a more significant market to absorb their own products. At that point they will be much less hesitant to start dumping dollars, due to any reason (economical, political etc.) One more thing, the U.S. is not the only industrial country with a large national debt, the main difference is that the U.S. debts are mostly to foreigners. This is much less the case in Europe. Update: just found this article, which might give more insight into this matter globalresearch.ca/articles/FRA501A.html Someone in this thread mentioned paranoia, I would call it reality unless someone comes up with a brilliant idea to get the U.S. out of this mess. Just look at all the financial graphs out there, debts, deficits, personal savings etc. They do quite resemble the graphs of a pyramid scheme, and you know what happens to those eventually.