Economic Crash in Fall 2007 - Repost to correct video sync

Over the summer, the Dow Jones is going to look good and the underlying market is going to collapse. There will be a push by institutional investors to get small investors to buy shares in the DOW 30. Look for lots of rah rah to allow the institutional investors to abandon the Dow Jones without losing much money.

Meanwhile, more hedge and derivative funds will collapse. The investors in these funds are the mainline 401K and institutional organizations. They will scramble to move to "safe" investments like bonds and overseas securities.

The steep decline in the value of the dollar relative to other currencies will force overseas investors to liquidate their dollar holdings for those with a more stable valuation curve over time.


Increasing consumer costs will increase the foreclosure and debt defaults, forcing the market into a correction at the end of the third quarter.

Expect a large drop in value during the third/fourth quarter. This drop will come just before or right after a terrorist action in the United States or outbreak of hostilities in the Middle East.

By year end, the market will suffer a loss and the dollar should be at all time lows against all major currencies.

Category:

News & Politics

Tags:

• economic
• crash
• in
• fall
• 2007

[MarkDouglasC]

Basically I agree --except its nonsense that some terrorist attack is "planned". And money doesnt disappear in stocks. Someone gets it. Whoever sold it to the morons that bought high, they get it. The sucker holding the bag, pays the guy that sold it to him. I got out of the market. Im looking for a place to put my meager 50K cash. What do you suggest?

[jpalme2000]

A certified financial adviser is the right person to talk to about finances. I'm a hobbyist observer.

[russedwards777]

Happy New Year- No COLLAPSE YET MR Doomer.

Its the end of the year and no collapse yet!!

As for the rest of your predictions- they were already well under way and seen by others. Don't get to thinking you're soo smart.

[jpalme2000]

From Wikipedia: The phrase back-of-the-envelope calculations refers to rough calculations that, while not rigorous, test or support a point. They are far more than a guess but far less than a proof. The phrase is generally used in mathematics, physics and engineering. It refers to the practice of quickly jotting down calculations on the nearest available piece of paper, such as the back of an envelope.

[maartenxxxx]

Quite a good analysis John. It's true that there are troubles in the Middle East right now (Turkey invading the North of Iraq). You were also right on the US stock exchange going down and the flight of capital to Europe (the dollar is falling fast).

I don't really get the part of terrorist attacks in the USA.. this does sound more like a conspiracy than some incomplete facts.

[jpalme2000]

The point I was making in June/July was that a large event, such as a terrorist attack or a major world event should be the cover for the fall of the stock market. However, as seen later in the year (Oct/Nov), the dollar value was sacrificed instead of the stock market. Thanks!

[gods2fight]

What about the rate cut today? Sure the dollar will tank - the Britney and Paris Hilton fans will just get poorer.

Ron Paul is the only candidate who stands for a strong dollar and the constitution. Rest of them will make people "rich" by printing funny money. Ron Paul is America's last chance.

[EuropeanEye]

mh... 1 euros = 1.41 dollars... pretty bad

[btbking]

haha sucks to be you.

[v7nf]

bullshit,its fall asshole,I have babies to worry about,stop spreading fear.

[enlightenedtwo]

Can you say Educational Reformation. If and when you take a hit in the form of an economic correction, always try to time it with a reformation of your educational system. I'm pitching the whole idea of an Interdisciplinary Educational System (IES).

[twolvefan8]

nice job dude i agree!

[Armonis]

You predicted correctly.

[zenithomega19]

this is one gigantic cluster fuck...and the Fed is fucking up BIG time....

[zenithomega19]

...right...except the stock market WILL crash (badly)...

..this banking mess is ONLY going to get worse folks....

[Ascendyourthinking]

Larouche already forecasted the collapse in 2006 you are EXTREMELY late!

[sapins68]

america has the richest resource in the world from copper mines to corn field to oil to steel america is blessed