Sunday, October 3, 2010

THE COMING CRASH! OCTOBER JINX MONTH!

The stock market is not a reflection of the real economy.  The market is set to crash by at least 2,000 points.  The problem we running into is that the financial propaganda machine and mutual fund industry want to create the illusion of a stock market recovery.  The recession has ended in 2009 but the consumer is deleveraging for at least 7 more years.  This means there is no money to invest in the market!  There is no way you can logically make the case that 76 million boomers who are retiring will invest in the equity markets. This does not make sense because they will need most of their money considering that most 401 k have only $50,000 and this will last about one year and 50% of the Boomers are bankrupt and will depend on social security and low level work.  It will take the Y generation at least 10 years to come into a real spending power.  We are faced with a major collapse of state government economies that cannot budget their budgets and most bonds in these municipalities are worhtless.  As the Boomers retire, state retirements will be faced with higher costs and lower revenues for at least 10 years.  There is no logical way out for the equity markets.  What type of markets will we have?  We will have trader markets, bubble markets, alternative investment markets, emerging market, health markets, and other markets associated with the retiring Boomers.