Great Depression Online Archive Issue:

Not All Doom and Gloom in 2009

Great Depression Online
Long Beach, CA
January 02, 2009

Inside This Issue You Will Discover…

*** Sheldon’s New Notoriety
*** What’s Next in 2009
*** Not All Doom and Gloom in 2009
*** And More

Sheldon’s New Notoriety

It’s 2009.  And we have some questions.  Will this year be better than last?  Will the stock market recover?  What about the economy? 

By all measures, 2008 was a disaster for the economy. 

Take Sheldon Adelson, for instance.  He attained a new notoriety when he achieved the top spot on the Forbes list of America’s Biggest Billionaire Losers of 2008.  To accomplish this, Sheldon lost $24 billion of his life’s fortune.  

Evidently his casino company, Las Vegas Sands, came up short on a couple of line bets at the craps table.  Still we don’t feel sorry for the fellow…in spite of the losses he has an admirable $4 billion to his name.

~~~Warning: The Current Economic Crisis Will Worsen~~~

Warning: The current economic crisis will worsen and more and more people will become homeless, jobless and broke.  There is however a way you can protect yourself, your home and your assets starting today.  It’s all outlined in “The Insider’s Guide to Surviving the Recession.”  Learn all about it here: The Insider's Guide to Surviving the Recession.

~~~~~~~~~~~~~~~~~~~~~~~~~

But down here with the rest of us, those without a wealth cushion to buffer against a freefalling economy, the consequences of financial losses directly influence day-to-day living standards.  And unfortunately it is very possible that 2009 will, in many ways, be worse than 2008.  In this respect, the economy hasn’t corrected its excesses just because the earth has commenced another rotation of the sun.

What’s Next in 2009

Here, for entertainment purposes only, we’ll venture some guesses as to what’s next in 2009.  Consider what follows to be worth the price you paid for it.

First, with a new President coming to office, we anticipate a strong counter trend stock market rally through March, or perhaps April, of this year…possibly taking the DOW back over 10,000.  But it will quickly fizzle out as reality sets in…

…that Obama, like everyone else, is powerless over the economy.

…that there are no quick fixes.

…unemployment’s rising and municipalities are broke.

…that a massive contraction is taking place.

…and that if you don’t get out of the market now, you may never get your money back. 

At that point, the market will crash through the end of the year, with the DOW ultimately bottoming around 5,500 in late 2009 or the first part of 2010.

Treasury bonds, on the other hand, are so high – the 10-Year Note closed the year yielding just 2.24 percent – it seems down is the only direction they should go.  In other words, with all the government debt being issued it is only plausible that rates should go up.  And in a free market rates would go up.

But with Ben Bernanke at the helm of the Federal Reserve, it seems he’ll do what ever it takes to keep interest rates down.  In fact, Bernanke will continue implementing “quantitative easing” policies, which, in snooty central bank parlance, is cover for printing money.  So in what will appear mysterious to the casual market observer, Treasury yields will remain low even as the dollar resumes its slide into the abyss.

This will have numerous consequences… 

…30-year fixed rate mortgages will be suppressed to 4.5 percent, supporting an artificial bottom in housing prices.

…oil and gas prices will be pushed higher.

…the dollar will plummet.

…gold will soar.

…and consumer prices will begin trending upward in the initial phase what will be a hyperinflationary blowout that’ll culminate sometime within the next 36 months.

Lastly, a quick note on the economy.  Obama’s stimulus package will be passed within his first 90-days to much hope, optimism, and unwarranted jubilation.  It will cost upward of $800 billion.  And, sadly, will not have a positive affect on the economy until 2010. 

Throughout 2009 unemployment will continue to rise.  The economy will contract for at least the first two quarters.  And many retailers and other enterprises that are heavily encumbered by debt will close their doors, as strip malls struggle with rising vacancy rates.

Not All Doom and Gloom in 2009

But it’s not all doom and gloom in 2009…just most of it.  Some good will come to pass too…

Old, bankrupt, dinosaur, companies will go extinct as new, efficient, and nimble companies burgeon into the giants of the 21st century.

The country’s obsession with the gaudy, flamboyant, and supersized will be replaced by a penchant for the modest, frugal, and prudent.  Debt will be shunned like the plague.  And those who earn their money though honest means will once again be more esteemed than those who recklessly speculate with borrowed money.

And lastly, before the year’s end, there will be a major technological breakthrough specific to energy and power generation.

Remember you heard about here first.

Sincerely,

M.N. Gordon
Great Depression Online

P.S.  Startling new forecasts for 2009 include a wind-powered car, oil prices at $160 per barrel, and a dramatic +100% rebound in shipping stocks.  Check out all 11 Surprising Investment Predictions for 2009 here: 11 Surprising Investment Predictions for 2009.

 

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