posted on Oct, 13 2008 @ 02:28 AM
Wow, at this point i don't think even a rebound in stocks and the financial institutions will rally help us right now.
I think we need to market to level out, and to very slowly rise. VERY SLOWLY. To were people are confident in investing and no longer panicking. If we
either fall or go back up quickly it could spell some problems.
Problem (1) The market goes back up and rallies.
The feds have been pumping money into the economy at a huge rate! the flood gated of cash are open and pouring into the economy. This is because we
are goign through Deflation right now, and to counteract it and to keep us stable the feds are injecting cash into the economy. this is because the
banks aren't lending, the banks aren't making money with money. And also people are holding their cash as its the only think thats not tanking in
value right now.
So if the market rebounds, the banks get that extra capital, and start lending again. The money machine will be back in motion, but the amount of cash
in the economy is at huge levels. It the economy rebounds quickly, the feds wont have an effective way to remove the extra cash in our system and we
will go through extreme inflation. It will be a mess. Gold and silver prices have been dropping though this entire market crash, but demand for silver
and gold is at all time highs. And as demand has skyrocketed silver has gone from $20 to $10 in 3 months. Once we hit inflation, it will not be
(2) The market continues to crash. Well, the economic system will just fail. banks and businesses will start to fall and it will just put their weight
on the shoulders of businesses that were holding their own and it will cause all the knees of the world economy to fall, like a cheerleader pyramid
almost. If the small person at the top falls, everyone falls. People will be holding money like their is no tomorrow, all the (electronic cash) will
be lost and just disappear. FDIC will not be able to cover all its deposits it says it will. The fact they say is just to make the people feel more
secure. They can no way in hell honestly insure all the deposits. its a joke. Its like saying, If the economy fails we will give everyone a million
dollars in gold! Its not possible. Cash may become VERY valuable, but thats when the monetary system is abolished with another currency.
These are just some possible scenarios. Possible, but these could change with future developments. But as of what is going on this week, this is what
i see as the two most dangerous scenarios.
If the markets slowly increase and heal slowly, we may get out of this ok, but i think this will be hard to do. And i for some reason don't think
this is in the agenda. Because this entire collapse seems almost fixed. Its complete haywire, but its happening so precisely and beautifully. Like a
building being demolished. To the outside it looks like a disaster, but to those who know about building structures and engineering can see that
certain things don't happen without extra manipulation.
And also about CRAMER.... Anyone who says "im going to do the opposite of what Cramer says", shouldn't be allowed to invest, haha. Im not saying
people who fallow him are any better, Any wise investor does their own homework, and their own research. because sometimes when you copy of your
neighbor, they just copied off the next guy, and the first guy was wrong. So if you go with your own gut you will only have yourself and your research
to blame, and you will have no honest way of knowing if the copied answer is right nor not. so you might as well just be guessing. Only copy if there
right 100% of the time! hah and we know every stock trader is right 100% of the time. ; )