Dow Jones to drop 2000 points

Discussion in 'Money, Investing & Precious Metals' started by Canadian, Feb 27, 2009.

  1. Canadian

    Canadian Well-Known Member

    I've been reading my various investment news letters. Some people are now saying that the bottom has not truly fallen out of the markets. They say that once the "stimulus" package is unleashed the devaluation of currency - combined with other worldwide devaluations by first world nations such as Germany, Iceland, Ireland etc. will cause markets to drop in a never before seen fashion. The prediction is up to a 2,000 point drop in the dow jones.

    In the past year or so the total value of all the assets of the entire planet has contracted by two thirds. If there is a major drop in stock prices hard goods of any type will soar in value. Stockpiling just about anything will become a win win situation. At this point stocks in companies that produce tangible goods or that hold tangible physical assets will be wildly undervalued. The breakout value of these companies will be much higher than their stock values. A prime buying situation for those who have the buying power.

    Keep buying gold and silver folks. Stay out of stocks in the near term. The worst is yet to come.
  2. Herbalpagan

    Herbalpagan Well-Known Member

    I have been reading the same things. I have to think though that a lot of things were over inflated and that much of this is cyclical. You can only push housing prices so high. We have relied on the housing boom for way too much in my opinion. We need to tuck back and maybe focus on bringing back some manufacturing. I was reading about a city in the north that has been working all along with the idea that you don't have to give out loans to people who can't afford them, you don't have to over expand your business to the point where the least little thing upsets tha balance....they aren't having the problems that much of the counrtry is.
    Seriously, WHY do executives need such huge paychecks and bonuses? If they kept things more modest, would their companies be in such a bad position? WHY do people need brand new McMansions? If they bought a more modest home, they might be able to afford it. Why did people find the need to not use the car pool and instead had to have a new Hummer?
    I'm just thinking more and more that we brought this on ourselves. (not in a personal way, just in general)

  3. The_Blob

    The_Blob performing monkey

    welcome to FunWorld where social dysfunction & conspicuous consumption are two sides of the same dime :eek: :D :rolleyes:

    how much 'FUN' we having NOW, boys & girls?
  4. TechAdmin

    TechAdmin Administrator Staff Member

    I'm guessing it will drop into the 6xxx next week and stay there for awhile.