Tuesday, November 11, 2008

An Interesting Prediction.

World Net Daily
Dow to hit 6,000
Obama predicted to be worst president on economy since Herbert Hoover
Posted: November 10, 2008
8:58 am Eastern

WND Editor's Note: The following report is excerpted from Jerome Corsi's Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of "The Obama Nation," the blueprint for Obama's first term in office.

The Dow Jones Industrial Average is heading for a new low of 6,000 as Barack Obama prepares to assume the presidency in January, according to a new report from Jerome Corsi's Red Alert. Red Alert accurately predicted the Dow Jones Industrial Average would hit a pre-election bottom of 8,000, a forecast fulfilled in mid-morning trading Oct. 10.

Now Red Alert's author...is predicting a President Barack Obama will set new lows across the board, earning for himself a reputation as the worst U.S. president in modern history when dealing with economics. The Dow will hit a new low of 6,000 in the fourth quarter 2008, most likely reaching that mark sometime in the next two months, probably in late November or early December, Corsi predicts.

"We are confident the mainstream media, which did every possible bit of cheerleading to get Obama into office, can be relied upon to proclaim him a genius following every decision he makes," he said. "Unfortunately, economics tends to be a function of reality, not hype."

...Corsi predicts Obama over the next four years will lead the U.S. into the worst global depression it ever has experienced. "Red Alert is confident that within one year, even an economic failure like President Herbert Hoover will look like a genius when compared to the failures we are likely to see from a President Obama," he wrote.

If you recall the chart that I posted from an earlier blog entry, 6000 would not actually be outside the bounds of a conservative DOW trendline.

But I have doubts whether it would actually fall to this level in the last quarter of 2008. If it does so, I would think it would be sometime during the first half of 2009. The Powers-That-Be will want Obama to have a honeymoon period, and they don't want to do anything that would spook people further from buying gifts for the holiday season. Granted something wild may happen over which they may have no control, but all other things being equal I would guess that a 2008 prediction would be very premature.

Naturally, I could be wrong. That doesn't mean there are no stock market opportunities out there.

If one is out of debt, which I hope you are, and are willing to acknowledge that investing in the stock market is gambling and don't invest money you can't afford to lose, then there are still good stocks to buy. There are still companies in the US that make some household goods and everyday necessities, and these, if managed properly, may be worth investing in. I would not take any stockbroker's word for anything, however - it will be necessary to do your own research into a prospective company and see if you are satisfied that they are not mired in debt, not dependent upon some other company's product or material that is mired in debt, not doing business in an unsustainable manner, have committed to employing Americans, have committed to green policies, and make a product that people would not willingly put on the budget chopping block as an unnecessary expense. That's a tall order, class - but that doesn't mean no one out there can meet those criteria. What you're looking for is smaller, regional or local companies that aren't pretending they can be all things to all people everywhere. Look outside the box. The guys who got MBAs and bought into the globalization scam are dropping like flies. Find someone who didn't.

Or better yet, get together with some like-minded friends and find some product that you can hire people right in your own area to manufacture, a small scale local producer employing local citizens (not cheap illegal aliens), done without loans or flaky financing schemes. Remember, the best form of charity is to give a man a job. If you have money to invest, this is the proper way to do it - a long-term true investment in the community, not a greedy wish for immediate unearned income and unsustainable profit.

Remember, greed for instant gain is what got us into this mess in the first place.

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