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The 4th-Quarter Collapse

September 25, 2008 – Comments (2)

The 4th-Quarter Collapse
By Michael Shulman of Changewave

(How to sneer at danger
and pad your profits)


Fellow Investor,

A quick economic recovery is impossible.

Think about it.

Things are so bad the politicians are crafting a $700 bailout of the financial system. This is on top of the Fannie Mae and Freddie Mac bailouts. This is on top of the bailout of the world’s largest insurer AIG.

Do you think it’s possible--just possible--that we are much closer to a 1929-style Depression than anyone is letting on?

Tough questions and
no easy answers

Maybe your bank is safe... or maybe it’s not.

Maybe your money market fund won’t “break a buck”... or maybe it will.

Maybe you own the next Lehman... the next Bear Stearns... the next AIG.

If it all feels like a crapshoot right now, that’s because it is.

The Pollyannas of the investing world told us the subprime storm would blow over a year ago. But that hasn’t happened, has it?

As it turns out, this is a CANCER, devouring the whole financial system and infecting the entire economy--not just in the U.S., but everywhere around the world.

There’s no place to hide.

Emerging markets are toast. Europe has ground to a standstill. And here at home, people are praying that they keep their homes, their jobs, their retirement savings.

The government’s $700 billion bailout is a move of desperation. They don’t know what else to do--so they might as well throw money at the problem and hope it magically goes away.

But it won’t.

This “solution” just adds to the crushing debt load that is killing the dollar. And a dead dollar translates into higher energy costs at a time when most consumers have no way to dig themselves out of a deepening hole.

No savings. No more home equity. Stagnant income. Pressured by rising prices. Scraping by this week and worried about how they’ll get through next week.

And the politicians are doing what they do best--blaming each other for the mess.

It’s the perfect recipe for a 4th-quarter collapse, and there’s no place to hide.