Is the worst yet to come? Or over Already.

I'd like to know from experts in finance if all the gloom and doom is simply fear mongering.Is there a pivotal point in 2009 where the USA will become exposed and the economy/finance system will come crashing down like a house of cards? Because right now..the dollar is doing fine,dow is at 7000.So i'd like to know what *straw* if you like will snap the camels back in the next 9 months.Like i said people in the area of finance or atleast interested in it,no NWO/Illuminati/Zionists conspiracy theories.

Cheers

It's too hard to say. Compared to the Great depression where 15k banks failed and the government responded to late, I think the count now is only 15 banks have failed and the government has been very proactive with bailouts and stimulas bills and ownership in banks like citi corp. I don't think everthing will fail in 2009. Best to be prepared though.

Oh let me just add that I'm not sure everything the governement is doing is right but they are being pretty proactive and responsive compared to the Great Depression.

[edit on 1-3-2009 by amazing]

Hope for the best and prepare for the worst.... or in my case, hope for the best and prepare for something a little less than the best because I am to broke to truly prepare for the real bottom of the scale Worst... so god help us that it doesn't get that bad.

While much prediction will take place in both directions a definitive answer is something we would all like to know.
The situation is such in that we may be almost "bottomed out" (but not quite in mho) or this may very well be the beginning. The decisions have been made in the form of many governments throwing money into stimulus, and while I do not believe it to be the correct thing to do at all, I may indeed be wrong. If I am wrong then I will be glad to have been wrong. If I am not then we haven't seen anything yet that could be defined as economic crisis as currently defined. And that may be exactly what the most elite ruling powers of our time desire, in order for them to gain ultimate control. They can afford it. We can't.

The Dow is the wrong indicator to monitor. There are only 30 stocks traded on the Dow. The S&P 500 is a much better indicator, as it has 500 stocks traded on it.

IF the S&P falls to 500, about 25% of businesses traded in it will go bankrupt. WHY? Because of pension obligations. There will be no money to pay the obligations they have and therefor the only option is BK.

IF that happens, we see a large increase in unemployment, and a following reduction in tax revenues which will then cause more problems which may cause the S&P to drop further, creating a spiral that ends in an eventual collapse of our government.

Theoretically things could spiral downward to the point where cash is no longer king and is good for nothing more than wiping the nether regions of your body after evacuations. Barter would become the method of trade.

Our government RIGHT NOW needs a minimum of $500 Billion just to pay interest on it's debts. IF that it no longer obtainable, then the US defaults and government collapses.

Even with all the bailouts and stimulus spending, I have not seen anything that has even tried to restore confidence in our financial systems. Laws already on the books are not being enforced, the crooks responsible for financial frauds are not being prosecuted (not Madoff and Stanford, the folks at the BANKS). If something doesn't change, and fast, there is no reason to believe that the scenario I just described above won't happen.

reply to post by infolurker


Not to hijack this thread but interested in how your preparing thread bare as I am at the moment?

reply to post by redhatty


That's very reassuring red...seeings how Asian stocks are down 3 percent and our futures are down as well.

Could be a bad day tomorrow for stocks.

The best way to describe it all....
THIS SUCKS

I would have to say that the worst has begun and far from being over.

Yet best is yet to come!!!

Do you know why the S&P would fall to 500.I mean is there any external forces that could effect in.Does financing from foreign countries come into the equation?

Originally posted by amazing
reply to post by infolurker

 

Not to hijack this thread but interested in how your preparing thread bare as I am at the moment?

Well, what I would like to do is have an underground safe-house (I mean house, not a cold hole.. hehe) with both city water and electricity, toilets, furniture, wood & propane stove, etc. and a sh it ton of food, a well, solar and wind back-up 12v emergency system, etc. on a acreage with a flourishing orchard of apples, pears, cherries, grapes, blackberries... you get the idea.


What I have to settle for is paying for an overpriced house in the burbs, buying a years worth of food, buying a years worth of ammo and having an acreage with nothing on it but pasture grass and a pond (yet because I am broke, broke, broke for one more year or so when 2 car payments monthly go bye bye).

So I got a bunch of food and ammo, some surplus gear, printed books, "camping gear" that's about all I can do right now.

But food and ammo prices aren't going down so it is also an investment.



My "wanting" of a "safehouse" of this nature is for many contingency situations... Anything that interupts the Transportation system or the electrical grid for over 2 weeks and it is not going to be good. That is Threat #1 and numerous things can trigger that and all hell would break loose.
(EMP, natural or manmade, war, terrorism, massive natural disaster, etc.)

Secondary threat of course is economic collapse and pandemic pathogen.

Third threat is complete and utter chaos caused by a combination of two or more above.



[edit on 1-3-2009 by infolurker]

Personal Opinion, I'm currently enrolled in Business Adminstration in College.

I think we'll have our good days or even a month, but when you study the art of this major fraud, it can't last forever, and it's like a Antartica its there but we're already seeing it start chipping away.

The thing that bugs me the most is, what will happen once it falls apart. I hope someone has a plan for it.......

Personal Opinion though, not fear mongering.

reply to post by infolurker


heh ok I can relate. You're way ahead of me but i'm not completely unprepared. Less land no pond though! Also working on marketable skills incase we enter a severe depression that isn't total collapse.

You guys are so doom and gloom, I love it!!!

But, you don't realize how many things there are working against the NWO.

And how the NWO continues to fail.

Severe depression = cheap fifth wheel camper or trailer on my land and dumpster diving / scavenging with my pick-up for me since my primary line of work is "office" based and if that goes bye bye, well... We will have to rough it in a trailer for awhile since the land is payed for.

Well, the banks are only issuing credit to those with near perfect credit.

The bail out packages the banks accepted. They are hording the money. As one CEO stated "I don't know what happened to the money."

Umm, what?!?!

At any rate, as more and more people lose their jobs (to the tune of 600,000 per month for the last three months), more and more of them will default on their home loans.

About the only thing banks are making money on (aside from the corrupt bail out packages which they "lost") is credit cards.

As more and more people lose their stream of income, credit card payments will become a very low priority.

There is something allot of people are missing;

the farming industry relies HEAVILY on credit. And their credit is drying up very fast.

When a farmer can't get credit, crops don't get planted.

Food distributors don't get their product. Truck drivers don't have as many loads to transport. And you don't have any bread to buy any bread (pun).

Anyone remember the farmer crisis during the Carter era? I do. I lived in DC at the time.

What is coming is the horrible sequel to that event.

The market has lost 50% of it's value in 19 months. And the credit crisis is only beginning.

As more and more people go jobless, credit card payments will become more and more sparse.

When Americans lose their ability to swipe their plastic cards and when farmers can't plant their crops.....

Hang on Dorothy, Kansas is about to go bye bye.

[edit on 3/1/2009 by Genfinity]

Given that trillions are sitting doing nothing in many financial institutions and are poised to be released into the economy when they're done selling as much debt as the market will bear... I expect that we will see hyperinflation ala Nazi, as all those dollars are set loose in the economy, and then a "bold move" that unites US, CA and MX. Amero here we come.

But they will keep it looking as pretty as possible to sell that debt. When the hyperinflation comes, the whole world will reel from the flood.



[edit on 3/1/2009 by Amaterasu]

In my opinion the worst is it yet to come. It just started a few month ago, too short of a time for the effects to unfold completely.

This whole bailout story is more for entertainment than to overcome this crisis. If you want to stimulate the economy with inflation you have to pump the money into production not into buying up toxic assets. It's like throwing all this money into the fire in hope it will go out.
The mortgage deal was the beginning. The next bomb will be the credit card story. These two areas will pretty much take care of one financial institution after the next breaking apart.

So, to answer your question: It's not already over. We just left the port........

Originally posted by Solomons
Do you know why the S&P would fall to 500.I mean is there any external forces that could effect in.Does financing from foreign countries come into the equation?

AIG needing even more money, HSBC closing down many lending programs in the US, another Madoff/Stanford cockroach brought to light, Auto companies still not making it work even with bailouts, GE reducing dividends for the first time EVER, unemployment rising, the EU rejected the bailout of Eastern Europe (breaking News)

These have all been in the news recently. How many more reasons do you think you need?

Originally posted by 12.21.12
You guys are so doom and gloom, I love it!!!

But, you don't realize how many things there are working against the NWO.

And how the NWO continues to fail.

Ah, I am not an NWO person... I feel the government is actually more inept and is not plotting martial law, camps, etc and such but who knows. I am not afraid of the "government", what I fear is the opposite- total lack of authority in a "disaster scenario" and if command and control are lost, those local authorities will start to fend for themselves (at your expense) when they determine that they will not be able to keep it together. Other than that, almost all of my "worst case" contingency plans are based on the "absence or collapse" of authority due to being overwhelmed. Of course my previous statements change the second I hear "mandatory disarmament", "mandatory evacuation to a center" or "prosecution / confiscation of material from hoarders".

Originally posted by redhatty
the EU rejected the bailout of Eastern Europe (breaking News)

Well, the problem with the eastern bloc of the EU is very complex. Many countries gave huge loans to economically weaker EU partners to help them reach an common level. Now, these eastern countries are broke and can't pay back these loans which in turn means a lot of trouble for banks in wealthier EU countries. Their money is basically gone.
EU banks are facing losses of 25 TRILLION dollars. That's twice as much as the EU GDP.

One thing triggers the other. They are all going down....