2013 Crash?

[Fast Gunn]

No, the market will not crash in 2013, but it might slip a little, but then recover lost ground. And you can tell them that Fast Gunn told you this forecast.

You remember Fast Gunn, don't you? He predicted the outcome of the Supreme Court ruling on Health Care
when most predicted the opposite.

Some were even dumbfounded.

There will,of course, continue to be peaks and valleys in the market as there have always been. Find good ones and hold them.

I will admit that my portfolio has taken one hell of a beating this last few months, but I have still been able to keep picking some winners and I have still managed to keep my account growing.

Technology stocks used to be the hot sector going through the roof and I stocked up on them then, but now they are close to the bottom, but I still hold Apple because I expect them to zoom up again soon.

Utilities are doing somewhat better these days and I've found some money makings gems in that sector.

. . . I think the real danger we all face is to give in to mindless fear and start imagining bad things are going to happen because that kind of thinking is precisely what brings bad things!

[CuteOldGuy]

This is not a prediction, FastGoon. Do the math. The direction we're heading leads ONLY to collapse. It's just a matter of when. Get out of the market, now.

[Fast Gunn]

Well, that is always a good sign, considering his atrocious record.

When the crazy old coot says one thing, that you can be pretty sure the opposite is true.

. . . I think I just got an amend, but of course it was delivered in a convoluted old-coot way!

[icuminpeace]

The markets will crash. You can't keep piling on debt without consequences. Debt is already at record levels, and believe me, regardless of who wins, debt will continue to accumulate. I know the fans of the Republican party are claiming Romney will be the savior, but that will not be the case. I insist, I want Romney to beat Obama, just to prove my point. The US will go down like Greece, Spain, and the rest of the EU countries that couldn't keep their fiscal house in order. My prediction is by the end of Romney's first term, we'll be at $25T in debt. He'll just blame Obama and the Democrats in congress, while the Democrats all of a sudden will become the party of fiscal responsibility (of course, for campaign purposes). Anyone that supports either party is delusional if they think their party will fix everything that's wrong with the US. Both parties are the problem and have taken us this far, now it's a matter of time for the bill to come due.

[joe bloe]

Originally Posted by icuminpeace

The markets will crash. You can't keep piling on debt without consequences. Debt is already at record levels, and believe me, regardless of who wins, debt will continue to accumulate. I know the fans of the Republican party are claiming Romney will be the savior, but that will not be the case. I insist, I want Romney to beat Obama, just to prove my point. The US will go down like Greece, Spain, and the rest of the EU countries that couldn't keep their fiscal house in order. My prediction is by the end of Romney's first term, we'll be at $25T in debt. He'll just blame Obama and the Democrats in congress, while the Democrats all of a sudden will become the party of fiscal responsibility (of course, for campaign purposes). Anyone that supports either party is delusional if they think their party will fix everything that's wrong with the US. Both parties are the problem and have taken us this far, now it's a matter of time for the bill to come due.

The thing that will accelerate the process of our demise is rising interest rates. We're rolling over the national debt at a very low interest rate because the dollar is still seen as a relatively safe haven. In the next couple of years our debt level and our printing of money will frighten investors sufficiently that they will begin to require higher interest to buy our debt.

As the interest rate on the debt increases, the deficit will increase which will trigger further increases in the interest rates. That's the death spiral that ends in hyper inflation. Devaluing the currency is how countries go bankrupt. It's what Germany did after WWI. They had debt they couldn't possibly pay, so they devalued the currency.