Hidden News Hits Mark On Dow Drop

Image via Wikipedia

On octaber 24th The Hidden News predicted the Dow would hit 7000. Well folk, It's almost there and still dropping. Had you payed attention then you would have saved a boat load of monney, but were not here to tell you I told you so.
The Dow is likely to hit 6000 before this mess is over as Tech Stocks take a major hit. Tech stocks will come back though. The keys is to dump stocks buy bonds which have out performed stocks and sit tight.
This crisis is far from ober. It is just begining. As Credit Card Compnies indiscriminately raise interest rates on people the default rate will triple. People who were good credit risks will suddenly lose the ability to make payments. People who were bad or average credit risks will default like mad. There will be no amount of money the government can invest in the banks to save them at that point. They will simply fail.
The banks have chosen their own demise buy following this policy. They will force people into bankruptcy at unprecedented levels by making them unable and unwilling to pay off their Credit Card Debt.
In the mean time Congress is sitting on their hands, because the banks own them. They are so afraid of the banks they will let the econommy suffer a nuclear disaster. This is the beginning of the end folks. Get a safe. Go to a credit union, but get your money out of the banks. If you own stock you are toast. Sell it for what you can get. Liquidate all your assets if they are affected by a major bank and sit on it. Roll your 401ks into iras and run I repeat run from anything to do with a bank that offers credit cards, because once a person defaults on one credit card the rest follow like dominoes. Expect the Dow to drop to 6000 maybe even 5000.
The govenment, the media, and the stockmarket would have you think that a panic is going on, but the real story is the market is about to hit lows that can't be predicted and can not be comprehended. The Dow could simply fold, since it is only based on 30 high performing stocks. If the dow folds, it could take the whole market with it.
The result of this could be a depression deeper than the great depression and even a decade of economic failure and misery.

The Bottom Line Keeps Falling

Image by bobster1985 via Flickr

I've been fairly silent in the past month, because I was waiting for the last shoe to drop. I thought that politicians would start speaking the language of the average person, but it seems that they are still enveloped in their fantasy world.
They are playing politics as the economy burns to the ground and believe me it is a 20 alarm fire. Congress seems to be caught in the 0's culture of drugs that can allow people to hallucinate that reality depends on perspective. It seems that they are hallucinating that the bottomline keeps falling lower and lower in respect to the how soon they will be solvent again.
Every day people are looking at their retirement and their bank accounts and praying that they are caught in a bad dream. Sorry people, this is not a bad dream it is what happens when a country stops making things and all the money has been sent to asia. You see what the politicians and economists call a global economy is a fantasy that a fool dreamed up. You can not have jobs in a country this size if people are not buying goods made in the country. The bottomline is that buying american was not just a slogan, it was an economic necessity. But, companies in the U.S. were greedy and the American people wereg greedy. The companies sent all the products that were made in america out to be made overseas and the American people blindly invested in those companies. Well, the chickens have come home to roost. Empty factories that could have pumped money into the economy and kept the wheels greased are crumbling and the mask of prosperity has fallen off. People can see that the money they thought was here was never here and now the government has to print it and hand it out, so that this country will have money in it's economy.
What people and economist failed to understand was that the economy of a country is a fish tank. Monet goes around and around in a circle over and over again and it gets more added to it as it is needed, like the water in a fish tank.
So what happens when you start pumping water out of the fish tank. It runs out and the fish die. Well America pumped dollars out of the country and the economy died.
Make no mistake the economy is dead. The question is can it be revived. The answer is no. This economy is dead forever. The days of borrowing insanely are over. The days of spending with impunity have ended. A new economy must rise from the ashes of the old economy. People in the U.S. have to make things again. They need to buy what is made. This country got to be the greatest economic power in the world, because we made it better, smarter,and in large enough quantities so that products were affordable and reasonable. Now things are disposable. Nothing last like it should. People have gone back and bought the ssame things ovr so many times that they are in debt up to their armpits. They depended on raises to stay ahead of their debt and most of them did. But, and this is the big but, the things they bught were inflaated in price. They were spending money to buy things that lost half their value when it left the store. That was the begining of the end people. When you can't sell your things for more than you bought them for, when your house has no one to buy it, because the price is out of everyones purchasing power, it all comes crashing down. The U.S. economy became a giant pyramid scheme and the music stopped playing and millions of people were left without chairs. They had no savings. Their houses were overvalued and there were no buyers. Result: An economic crisis that rivals the great depression.
Of course the banks didn't help, because they handed out money like mints in a hotel and relied on borrowing more until they were repayed. But suddenly, millions of people were not repaying the money. The banks couldn't borrow more than what they could repay and they couldn't repay anything. So, the banks began to fail.We threw money at them to save them, but n one asked if they were in debt so deep that they were lost.
Obama has asked the 1 trillion dollar question. How much do they owe? This is something that Wallstreet doesn't want to know. Commpanies don't want to know either. Really no one wants to know, because if they have too much debt, no amount of money will save them. Think of all the money you won't have if they default. Nothing will be worth a plug nickle, because everyone will be broke. There will be no buying, no selling, nothing. What you have right now is what you'll have 5 or ten years from now. This is the skeleton in the closet and Obama's about to open the door.

The self Stimulation Package

Apparently Obama and the Congress are trying to keep their freinds and relatives working. The stimulus package creates jobs for people who know longer exist. Machines do 90% of the construction work in this country. Their isn't any need for people to do most of the jobs on roads and bridges.
You've been there, right? Driving along and the cones go on for a mile and then there are two guys standing next to a machine watching the operator work. The stimulus package will ad millions of cones to the road not millions of workers. Maybe Illinois makes the cones for the whole country. That would add some jobs.
Once again the government has it's heads up the economists asses. It seems the need an economist to tell them what kind of jobs Americans do. They have no idea that the majority of the country is in the service industry. Perhaps they think that the two beer belly guys watching the machine are off to the local spa after work.
People will not install solar panels or windmills, because the cost more than the make in ten years. Perhaps the plan is to give their relatives grants, so they can afford them.
Cutting taxes for people who are be laid off is another winning strategy. I can see them touring the state, promoting the tax cuts to the people who have now moved into the salvation army, because their jobs, house and money are gone. Of course these people will applaud wildly when they here they get more tax credits if he can find a job.
The reality is that the stimulus package is a mixed bag of Democratic give aways to all the people who they owe for getting elected. This may seem like a Republican point of view, but it is the same with the republicans. They want to give tax breaks to all their supporters who still have jobs.
Want to have a real stimulus package; end the credit card companies omnipotent power and actually give people the opportunity to get out of debt. We have gone back to the days of the company store, where people paid endlessly for the basic necessities.
Guess what people if the whole country stops paying their credit cards the bank and the credit companies will no longer have any affect on you. They simply can't blackmail the whole country into paying their credit cards if there is no one that pays. Fear is their ally. You are afraid of them. Tell them to go suck an egg.
The end of credit card debt will liberate you. You'll have a thousand dollars a month more and you can actually pay your mortgages.
Bottom line is the credit reporting companies have no power that you don't give them.
The stimulus package will be DOA when it reaches us. That ten dollars a month you get, because of the lower tax rate will go a long way right?

Hilary Duff at the New York Stock Exchange.