predictions for tomorrow – duck and cover

Tomorrow is likely to be a bloody day in the stock and credit markets. Because of the upcoming election and the incredibly strong public backlash to ANY bailout for Wall St, house reps are likely not to pass the “sweetened” bailout in an effort to save their own skins/jobs. The failure to pass this legislation or provide any meaningful alternative will send the stock market plunging down 20 to 30% (i think it will end somewhere in the 7000s or 8000s) wiping out trillions in stock market equity value. The credit markets will be 100% frozen, not just kinda frozen like they are right now. Within days it will be nearly impossible for anyone to get a loan for anything. Businesses will begin to layoff thousands and perhaps millions of people because they will not be able to make the next payroll.

I really hope my predictions are absolutely incorrect or at best exaggerated but I really don’t think they are. Dark days are coming fast. Do whatever you can to prepare. I really don’t know how you do prepare for this type of thing. It’s a once in a lifetime thing.

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~ by razor on October 2, 2008.

3 Responses to “predictions for tomorrow – duck and cover”

  1. I ttok my money out of the bank today. Call me crazy, however i do not want to go into another weekend like the last one. It is getting scarely out there.

  2. What happens if we do the bailout and it fails? We need to let the market find equilibrium. The market has been “cooked” for so long and Americans have been abusing credit for a long time. We must now pay the price and and let the natural effects of the market control the market not man made controls.

  3. Once you take your money out you lock in your losses. You should continue to buy to lower your average price paid (dollar cost average).

    Anyone remember what happened to the market after Sept 11? How about Oct 1987?

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