The harsh reality is that the forces allied against us both foreign and domestic are formidable

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Talk of Worst Recession Since the 1930s

Submitted by Richard Clark, Nov 13, 2007 14:27

It is important that every American understand that this next Presidential election will be the most pivotal in our countries history. You will not hear these views expressed in the mainstream media with any degree of urgency. Why that is, I can only speculate, but I suspect special interests keep the media in check. The harsh reality is that the forces allied against us both foreign and domestic are formidable, to say the least. If we do not stand up and face them together in a unified way they will overwhelm us.

In no particular order:

We have been in Iraq now for longer than we were in World War Two. The cost of this exercise is projected to be between 1-2 Trillion dollars. Now, I am all for protecting our national interests but let's be realistic, I think we have done more than enough for the people of Iraq. It is their future let them be the stewards of it. If we truly want them to practice democracy then let them choose their own path, even if that means the only democratic choice they make in their lives is to not to be a democratic. This war has dragged on for way to long. Am I the only one who thinks the argument that we are fighting terrorists there, in order not to fight them here, is so moronically simplistic as to be insulting? This war must end and we need to let the chips fall where they may. We have more pressing domestic problems on the horizon.

Illegal immigration is an issue that must be addressed in a practical way. With an estimated 12-20 million illegal immigrants currently residing in the U.S. with more entering the country every day, the impact on the US taxpayer is an unfair burden. I see this as an affront to the American people's sensibilities. It is obvious that these people have broken our laws and are being rewarded for it. I cannot reconcile any argument for allowing them to stay in the country, least of all the argument that it is simply expedient. If for some reason, they were allowed naturalization, the result would be a political shift changing the balance of power in the country. How can anyone with a conscience and a sense of fairness justify this outcome? Regardless of the reason, they broke our laws and violated our sovereignty. Simply put, they are criminals and should be treated as such. I do not care that they work hard and do the jobs for much less than US workers. If we allow them citizenship, all that would end overnight as they would then be subject to protection under US labor laws. Any politician that supports the case for letting them stay is simply Un-American and deserves to be removed from office. After all, are not our leaders supposed to be upholding our laws? They do not have the right to choose which laws they will enforce and which they will ignore because of a personal bias. It is a dereliction of duty for our leaders to undermine our system of laws. It might take time, but we should systematically deport these people and tighten the control of our borders so that they cannot return. In addition, a law needs to be passed that any children born of illegal immigrants in this country should be returned to the parent's country of origin. The law that allows them citizenship now was not intended for illegal aliens but only for those people in this country legally.

Fiscally, the United States is on the brink of insolvency, the rest of the world knows it even if the majority of Americans do not. This issue is pivotal. The power of the United States is not derived from its military might but from its wealth. A countries wealth is created when its labor is used to take raw materials and fashion them into products that have increased value, which then can be sold outside of the country increasing the countries coffers. Since the advent of globalization, our manufacturing capabilities have been drastically reduced. The economy in the United States has become increasingly service based. The fastest growing jobs in the US are service jobs. According the bureau of labor statistics the fastest growing jobs in the US are:

1. Computer systems software engineer

2. Computer applications software engineer

3. Biomedical engineer

4. Physician assistant

5. Environmental engineer

6. Computer systems analyst

7. Database administrator

8. Physical therapist

9. Network systems and data communication analyst

10. Hydrologist

Not a single one of these jobs on this list can be considered a manufacturing based job. We have software, health care, and environmental industries represented. What is important about this list is that very little cross border wealth transfer occurs due to these industries, certainly nothing to put on a ship and export.

It is impossible for our economy to grow unless we are increasing the countries overall wealth. I take exception with the way our government reports economic growth in the US via the GDP. Over 70% of the US Gross Domestic Product is consumer spending! Let that sink in for a moment. That means that the government is calculating growth on the amount of money that we spend. Most of that spending is on goods from foreign countries and a good deal of that spending recently was borrowed due to people using their homes as an ATM machine. I have always viewed my own economic growth on how much my net worth increases and not on how much of my net worth I spent. Is what the GDP represents really economic growth? Hardly, since most of this money is ending up overseas. In order for there to be true growth the US trade deficit would have to be negative. As long as the trade deficit positive then our economy is retracting.

Now this retraction is being represented by the weakening of our nation's currency. The dollar has fell 10.5% this year alone. Given the aforementioned fact, that we are running a huge trade deficit and our currency is weakening, it naturally follows that we will be paying more for imported goods. Oil is now approaching the $100 per barrel mark and I believe that this will continue to move higher in the near future.

Anyone who is trying to save money without risking it in the stock market can attest to not being able to keep up with inflation. The CPI is a fantasy. It is yet another sleight of hand number that the US government uses to lull the population into thinking that inflation is under control. Without going into detail, I suggest you look up how this is calculated and decide for yourselves if the government is in fact misleading the public.

The trade deficit is not the only reason that we will be seeing inflation increase in the United Sates. A good deal of the blame should be put squarely on the shoulders of the US Central Bank. This organization created by congress in 1913 has systematically increased the US money supply devaluing our currency. The bubble economies of the last two decades are a direct result of their policies. The current housing market debacle is a perfect example. The central bank under Alan Greenspan's leadership lowered the overnight bank rates to a paltry one percent in order to promote domestic economic growth as they measure it with the GDP. Again this promoted spending and not saving. Because interest rates were so low, mortgages rates were favorable; this in turn increased demand and drove housing through the roof. This chain of events was further exacerbated by the investment banks. Since, mortgage rates are typically a couple of points higher than the Fed's overnight rate the investment banks saw an opportunity. They in their infinite wisdom bought mortgages from the primary lenders and packaged them into SIV's and CDO's which were then made available to only the wealthiest investors, pension and mutual fund managers. As a result, the primary lenders were again and again infused with cash and continued to originate mortgages. Once the conventional loan market (those with good credit) was exhausted, the banks lowered their lending standards and the subprime market was born. Institutions now began lending to unqualified borrowers and real estate speculators which the investment banks packaged and sold as well. This went on until the first batch of adjustable rate mortgages reset and the unqualified borrowers began to default because they could not afford the higher payments. As a result the income stream to the CDO's and SIV's began to dry up and the investment banks could no longer pay dividends to their investors. In addition, the underlying value of the homes the mortgages were based upon fell making it next to impossible for the investment banks to value the assets. Because of the difficulty in valuing these assets, banks became reticent to lend to one another because they did not have a clear picture of each other's collateral and thus a credit crisis ensued. So this is where we find ourselves today. The credit markets are in turmoil, housing prices are still falling and the bottom is nowhere in sight.

Instead of letting the market work like it should by punishing the investment banks and those invested in these toxic financially engineered CDO's and SIV's and other speculative investments, including real estate speculators. The Federal Reserve stepped in and began printing money to alleviate the pressure on the credit markets. As a result, the appearance of a massive bailout has caused a run on the dollar. Ben Bernanke has effectively placed the burden on the citizenry by devaluing the currency. When asked about the Central Banks response to the credit crisis due to the effect of printing money and devaluing the currency at the recent senate banking committee hearing, Ben Bernanke basically gave what can only be described as a "let them eat cake" response. In essence, he dismissed the idea that the Central Banks recent actions were inflationary saying that since Americans were paid in dollars and what they buy is in dollars therefore there is no effect on the US consumer of the recent dollar devaluation. I find that to be a contemptuous statement. Given the current price of oil, food, and other commodities, Bernanke is either very stupid or very out of touch. I think the statement alone shows his lack of mental acumen because, his response shows an arrogant disdain for the average American. He is biting the hand that feeds him and will continue to do so until we put a stop to this madness.

We are all now paying for the sins of greedy financial institutions and the irresponsible Federal Reserve. Now the worst part of all of this is that the Fed is an independent institution that controls the US money supply. When the Fed "injects liquidity" they simply create money out of thin air and, get this, they extract a fee for it. They make money on every dollar they print. The printing of money and the deliberate devaluation of the currency is a hidden tax on the American people by an unelected body. This is unconstitutional, as it is taxation without representation. There is no other way to look at it. The Congress of the United States was specifically given the power to create money in the Constitution. In 1913 they delegated the authority to the Federal Reserve giving them complete autonomy. In my view the Federal Reserve needs to be eliminated and control of the money supply given back to the people through their elected officials.

Given the current economic realities the government must reign in spending and take on the issues of paying off the national debt which is 9.1 trillion and counting. How are we to pay this back? There is no other way then to reduce government spending and eliminate domestic government liabilities, namely the massive amount of entitlement debt in this country. Congress just raised the cap on the national debt by 850 billion dollars to 9.815 trillion because on October 1 the debt surpassed the limit of 9 trillion dollars. Since then, it is already at 9.1 trillion and increases at the rate of 183 million dollars a day due to interest and, the rate is accelerating. It will not be more than three months and they will have to increase the cap again. This is tantamount to letting a borrower who is over their credit card limit to continually raise the limit and make the minimum payments with the increased credit. This is a staggering problem. Are we going to address this or wait until we default on or obligations and become a third world economy?

Is it not apparent that we cannot continue with the status quo? Is it not obvious that our elected officials are not doing their jobs? We need to make the hard choices now, before it is too late. If we wait they will be forced upon them by a worthless currency and a massive recession. Our leaders through inaction driven by fear of not being elected are not shooting straight with the American people. They are robbing your futures and selling our children's into economic slavery.

The cruel reality is that it is now too late to save Social Security, Medicare, and Medicaid. We just have to except that as a fact. We cannot continue to delude ourselves that we can have our cake and eat it too. The current estimate of the entitlement obligations over the next 20 years is 50 trillion dollars. Hey, we simply do not have it. As I mentioned before, our economy is retracting based on the trade deficit. The only way the government can collect this much in revenue is to put an undue tax burden on the next generation. The additional burden, I might add, is one that those getting ready to retire did not have to shoulder themselves. The retiring generation should have paid more attention to what their government was doing with their money. It is not the future generation's fault that they allowed themselves to be swindled by their leaders. It is up to the future generation to make sure that they are not similarly misled.

It behooves us to eliminate these programs for retirees who, through a means test, are determined not to require it. Any savings incurred should be applied to paying off the national debt and returning solvency to our country. Tax reform must be undertaken to close loopholes for the rich and for corporations in order to insure everyone is paying their fair share. We should also include tax incentives for small businesses as they are who employs the vast majority of Americans. Small business is currently carrying too great a load of the tax burden.

Major changes must be made in order for our country not to be undermined. We cannot keep putting off the hard choices we face simply because they are unpopular.

We can make a difference if only we make ourselves heard. We have to be prepared to take drastic measures in order to ensure that our government represents us and not the special interests. We need wholesale change in our government. That means we do not vote for career politicians but, for honest citizens, who understand the crisis we are facing and are willing to begin by reforming our government. No solutions are possible until government reform is implemented. That means our elected officials have to give up the perks and limit the influence of the moneyed special interests.

Can you honestly say that the current crop of people running for higher office in this country is selfless enough to embrace wholesale change? These people have been born of this corrupt system. We have to look outside the parties and find qualified individuals to change the way we conduct our government. I for one do not want to reward anyone involved in getting us to this point. Because either they were too stupid to realize what was going on or to corrupt to care.

I used to be a republican, until George W. Bush exorbitantly increased the debt by overwhelming proportions. I called the republican national committee when Bush was promoting his immigration bill and simply asked them whether or not they supported the bill. I could not get a straight answer. They lost me then and there. I simply cannot be a democrat because I believe in personal responsibility and they do not. I now consider myself not only an independent but, more importantly a pragmatist. I have been driven to this by the reality that, no matter who occupies the highest offices in our land, nothing significantly changes. Each successive congress fails to address the biggest issues of our day. They are mired in party politics and self interest. The American people are getting lost in the shuffle and we should be angry about it, angry enough to spark change.

Let there be no mistake about it. This election is going to be about the economic future of the country. We are at a fork in the river that once passed there will be no going back. Now is the time to choose. Now is the time to speak out and be heard. It really is up to us.

Richard Clark

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Other reader comments on this article

Comment	By	Date
bad news for us. [MORE]	bad	Mar 11, 2008 17:30
Lack of fiscal discipline and ignorance by the President and Congress has led to huge deficits and the weakening of... [MORE]	Boomer	Mar 7, 2008 12:17
So there will be 2 recessions under Bush. Overspending, lying about weapons to tie us up in Iraq while Osama... [MORE]	ATG	Feb 21, 2008 03:07
I believe that you are confused about the jobs going overseas, that was Bill Clinton. George Bush sent the jobs... [MORE]	Blueoxe	Feb 24, 2008 15:07
The fact is, the job selling started with Clinton, not with Bush. There are so many messes that Bush has... [MORE]	sockergrl80	Feb 25, 2008 16:03
It takes more than the president to pass and make laws. None in congress seem to do anything about the... [MORE]	JW	Feb 28, 2008 14:19
Poor beacuse of Bush [MORE]	V Malhotra	Mar 5, 2008 13:28
if people cant see what is going on around them then you are in big trouble look at the price... [MORE]	brenda	Mar 12, 2008 12:16
This country is broke. If not , why are we borrowing money from China to give rebates to (everyone)? What... [MORE]	tank	Feb 11, 2008 11:05
1st--there are bread lines, and there have been for many years--they are just in areas that you wouldn't condescend to... [MORE]	james	Feb 5, 2008 14:54
Time to dust off the 30's depression era movies and see how people survived in that day. I guess I'll... [MORE]	Darkness on the Horizon	Jan 24, 2008 01:33
I keep hearing the word over and over again but where is it.What recession .The 1930s was a recession .What... [MORE]	RodneyC	Jan 30, 2008 06:41
People are moving from 300,000$ houses they can no longer afford and into tents and trailers.Manufacturing jobs ,or the remnants... [MORE]	David	Feb 8, 2008 19:47
What do you mean a recession is coming? It's already been in Michigan for four years! [MORE]	Bamboozler	Jan 17, 2008 12:08
Good point! We run a business in Michigan and people practically beg us for a job. Yet, time and time... [MORE]	Kim	Jan 30, 2008 05:17
I have been watching the stock market fall everyday and Gold Increase almost $300 oz since august of 2007. The... [MORE]	Nailer	Jan 15, 2008 09:17
Go see the documentary at www.zeitgeistthemovie.com [MORE]	Sandra	Jan 22, 2008 23:27
Is dead on, 100 % correct. This country is in deep troube, because we are no longer a manufacturing giant,... [MORE]	The harsh reality is that the forces allied against us both foreign and domestic are formi	Dec 12, 2007 20:15
My family was in the machining business for four generations and I noticed after 1980 it was downhill. Everything we... [MORE]	Rocco	Dec 20, 2007 22:52
I noticed it closer to 1985 or 1986. I was working horrendous hours during that time, trying to do 3... [MORE]	Bruce de la Vega	Jan 2, 2008 11:30
We didn't have business and academic executives whining about supposed talent or labor shortages. Even before Pearl, we hired farm-hands... [MORE]	Bruce de la Vega	Jan 2, 2008 11:43
Politicians want to give us rebates. .These rebates(gifts?) are to buy our votes.We would have more money to spend if... [MORE]	Jack L.Kinch (1uncle)	Jan 25, 2008 19:21
IF we are ever to be free let us free ourselves of the Burdens of Oil. With any luck this... [MORE]	Nicolai	Dec 10, 2007 22:45
if the rets of your existene is so morbid and negative wow!!!!!!!! and i really am referring to an... [MORE]	howard lamel	Dec 7, 2007 07:51
running out beens to squeeze and repackage and running out of countries to send jobs to, the MBA (Move the... [MORE]	Alex Morfesis	Nov 16, 2007 00:47
PRE-shocks vs AFTER-shocks. As the boomers start retiring and selling their 401Ks, the supply will far outweigh the demand. 80... [MORE]	PJM	Nov 14, 2007 09:48
These always seem to accompany correction bottoms! Within 36 hours of this coming out, the market is now UP over... [MORE]	Jim Turner	Nov 14, 2007 09:38
I appreciate your optimism. Just be careful, there's a lot of downside potential out there. With the Fed and Treasury... [MORE]	Alan Walters	Dec 2, 2007 06:49
Thats what is wrong with this country, People care more about their party then they do about their country. Your oath... [MORE]	John	Nov 13, 2007 19:44
Yes, we in America, and around the World, are headed for the complete collapse of the economy. Of course, it... [MORE]	Steve Noe	Nov 13, 2007 16:44
If this fellow has made 30% a year for 9 years he started with about $30 million dollars. He may... [MORE]	jfm	Nov 13, 2007 16:41
It is important that every American understand that this next Presidential election will be the most pivotal in our countries...	Richard Clark	Nov 13, 2007 14:27
Some software is in the form of products. Unfortunately, it's a tiny and shrinking portion of the whole; most, indeed,... [MORE]	Bruce de la Vega	Jan 2, 2008 11:14
There WAS a recession in 1937-38 that was part of the depression. [MORE]	wijg	Nov 13, 2007 10:46
What people fail to realize is that the elites manipulate the economy for their benefit. The Great Depression was created... [MORE]	conspiracy	Nov 13, 2007 09:26
People. People. People. Calm Down. I have been hearing these depressions coming, we're all gona starve, we'll all be slaves... [MORE]	Ima Bilderburger	Jan 2, 2008 19:27
Yeah, more Governmnet will work - when the Government we have is blundered. I'm worried, which is why I vote and... [MORE]	Recovering Republican	Jan 23, 2008 12:06
The Illuminate- Trilateral Commission-Bilberg Group-all meet in Bohimian Grove,CA. end of July for two wks. This is your Power and... [MORE]	Genghis	Jan 26, 2008 23:25
USA Inc is borrowing $2 billionUSD plus a day, is running a current account deficit and the share price is... [MORE]	Thomas	Nov 13, 2007 08:22
Sure If you work at Wall-mart [MORE]	Pierre	Nov 13, 2007 07:14
Although the housing market will be in recession for sometime. The rest of the economy is doing fairly well. There... [MORE]	William West	Nov 13, 2007 05:49
Sell everything, and trade your U.S money in for gold. [MORE]	Richard Givis	Jan 22, 2008 13:30
Contrary to all the pundits no recession is forecast in 2008. Recession is definited as two consecutive quarters of... [MORE]	William West	Jan 27, 2008 02:36
To poster #1: Depressions are recessions. Recession is the CORRECT term for a finance professional to use. "Depression" is a subjective... [MORE]	Buyman	Nov 13, 2007 01:19
Yes, Buyman, "depression" is a subjective term, as is "recession". The recognized "authority", NBER, still waffles quite a bit even... [MORE]	Bruce de la Vega	Jan 2, 2008 10:58
Markets rarely correct to fair value. They ususally over correct to deeply undervalued levels. The stock market has been propped... [MORE]	Dave	Nov 13, 2007 00:29
Last year and earlier this year I warned of a severe recession , if not a depression, and took appropriate... [MORE]	Allen L Roland	Nov 12, 2007 22:44
As long as I can watch the setting sun and still buy a bottle of whiskey, then temporary market downturns... [MORE]	bob dylan	Nov 12, 2007 22:40
Mission accomplished as far as the Bush regime. They came in as gangsters and are successfully leaving like bandits. [MORE]	Lilly	Nov 12, 2007 21:38
Big business and the Politicians who are backed by them are to blame. By outsourcing across the various sectors, we have... [MORE]	Concerned Citizen	Nov 12, 2007 21:36
Does it matter what state the economy, value of the dollar, or housing market is in or political party is... [MORE]	James	Nov 12, 2007 20:20
Amen, James The new God is money. Our politicians are owned by the lobbyists who are owned by big buiness and... [MORE]	Tom Massey	Jan 21, 2008 15:49
Now that was a scary post! If I believed you (and it is hard not to), I'd sell my house... [MORE]	Kim	Jan 30, 2008 05:23
I was taught in college that over production and under consumption along with buying shares on margins were the culprits... [MORE]	William Watson	Nov 12, 2007 20:04
Coming from the other side of the economic scale, news like this hits home. You all wax philosophical with 'it'll... [MORE]	Alicyn	Nov 12, 2007 19:47
He's not in business to spread optimism. And sadly though he's right. I see the urban sprawl here in San... [MORE]	g moss	Nov 12, 2007 19:10
Which of the following headlines will grab an investor's attention: a) Stock market is following it's normal cycle and due for... [MORE]	JM	Nov 12, 2007 19:02
"I've never seen a market with more risk and what's significant is that risk is not yet priced in" Sounds scary... [MORE]	jdwren	Nov 12, 2007 18:46
Some people are talking us into a recession,a few months ago it was great. Wrong time to buy stocks,thanks! Panic selling! Stupid... [MORE]	pisces	Nov 12, 2007 18:40
Rising prices, in and of itself, is INFLATION. A recession can occur with rising or falling prices. The term "depression"... [MORE]	MIke	Nov 12, 2007 18:40
"Noting that consumption is already slowing, Mr. Melcher figures sharply rising unemployment is inevitable. Another of his worries is that... [MORE]	ISLV	Nov 12, 2007 18:39
Never fear, Hillary is here. She will fix all of our problems. Just vote for Hillary. NOT [MORE]	Kramer	Nov 12, 2007 18:29
forgot that I did that last month, taking a tidy 19.7% return for 2007. Always be ready to take some... [MORE]	Paul	Nov 12, 2007 18:18
The sky is falling, the sky is falling. It might be, but economists and investment experts are wrong about half... [MORE]	Reynard	Nov 12, 2007 18:09
I just got around to reading Brendon's book ("Dark Valley", published 2000) last month. Although on one level I knew... [MORE]	DMC	Nov 12, 2007 18:07
Panic, even those artificially induced by the Wall Street Wizards and media pundits is great for business. One, it allows... [MORE]	Steve	Nov 12, 2007 18:03
Melcher's comments are self serving. He admits that when he said "what is not good for the country, but good... [MORE]	Jon Smith	Nov 12, 2007 18:02
I like Dan's work, but no where does he point out that it was a depression in the 30's (the... [MORE]	David Rohret	Nov 12, 2007 17:28
People under 40 have never experienced a decent recession. We need one every now and then to shake things up... [MORE]	Chuckiechan	Nov 12, 2007 18:24
why anyone is surprised that the U.S. bubble economy is on the verge of a major correction is beyond me.... [MORE]	The Truth	Nov 12, 2007 17:26
If you look at the economy, you can see that there is no where else for the market to go... [MORE]	TV	Nov 12, 2007 17:22
the stock market may drop but not fail. our gov. cannot let this happen. the house and senat passed a... [MORE]	richard clark	Dec 16, 2007 21:04
The middle class in America have been the primary buyers and borrowers of money in the world for at least... [MORE]	Neal A E	Nov 12, 2007 17:22
with...gold rising...inflation rising...oil prices rising...the dollar falling...the stock market falling...2 ongoing wars...Iran getting nuclear weapons...forclosures way up....home sales way down...home... [MORE]	les	Nov 12, 2007 16:51
It doesn't take a genius to see that America is heading for a major recession. We are 9 trillion dollars... [MORE]	Earl Harris	Nov 12, 2007 17:24
In 1972, I was just getting into the real estate business in Florida.....one afternoon, I looked for encougagement from an... [MORE]	charles banks	Nov 12, 2007 17:25
Every recession was the beginning of another boom...It's called re-growth. We would have had a depression if not for Google,... [MORE]	george	Nov 12, 2007 21:11
I believe this story. Weeks ago, I contacted family and friends and told them to tighten their financial belts. How... [MORE]	GG	Nov 12, 2007 16:48
Whenever the economy takes a bump of some sort, there is always the alarmnists who for various reasons, tout the... [MORE]	Vince Hugh	Nov 12, 2007 16:38
I was very glad to see your comments after several 'gloom and doom we're all gonna die' ones. When unemployment... [MORE]	Elise	Nov 12, 2007 18:07
Yeah sure, everyone is working -- at greatly reduced wages in jobs they are overqualified for because all of the... [MORE]	ExPat	Nov 12, 2007 18:12
Wow! Talk about living in denial. please do some research and study economics and history. [MORE]	Professor X	Nov 12, 2007 18:53
WHAT R U HIGH! YEAH I am WORKING TOO, TOO DAMN MUCH - JUST TO GET BY. 1 FULL TIME, 1 PART... [MORE]	pitbull	Nov 12, 2007 19:23
Yeah thats fine and dandy Mr. Hugh, but only people making $300,000 or better were the be benefiting from President... [MORE]	Enyiazu Ehiemere	Nov 12, 2007 23:13
sure, there are alarmists at every bump -- but far more polyanna optimists. The housing market _is_ in bad shape and... [MORE]	rc	Nov 12, 2007 23:29
Yea everyones working alright... in low pay jobs without vacation pay, health benefits, etc. That's not exactly a good thing.... [MORE]	WillieG	Nov 13, 2007 04:09
Hey Vince, Your master's degree in wishful thinking doesn't paint over the reality of the situation. This guy may be a... [MORE]	jackiebaron	Nov 13, 2007 04:24
Vince Hugh you are blinded big time [MORE]	JA	Nov 13, 2007 12:49
Gerald Celente sees a similar picture to this fellow but he also sees a collapse and a panic followed by... [MORE]	Dylan Skriloff	Nov 25, 2007 14:45
Pitbull, so you're not making as much money as you would like. Neither am I. But what does that have... [MORE]	Vince Hugh	Dec 1, 2007 15:01
The markets are going to tank. Major firms are only delaying the event until they can sell their stakes. Just... [MORE]	JG	Nov 12, 2007 16:29
I've been following Dan since the late 70's.... he has always been correct in predicting major moves. [MORE]	Mike	Nov 12, 2007 16:17
WE bleed money for foreign oil, all going to oligarchs that hate us. We bleed money on oil wars so... [MORE]	Shredder	Nov 12, 2007 16:01
Sounds to me like the socialist are doing their best to scare everyone. Their idea is that then the democrats... [MORE]	Thomas	Nov 12, 2007 16:01
These people make all their money off knee-jerk selloffs. Of course he is going to tell investors to dump their... [MORE]	Chris	Nov 12, 2007 15:56
We have practically outsourced every single piece of our knowledge base to India, China, and a dozen other countries. When... [MORE]	John	Nov 12, 2007 15:52
What is left out of the equation in the analysis of The Great Depression was the effect of capital flight.... [MORE]	George French	Nov 12, 2007 15:52
IF all of you posters are so sure of your knowing what will be the future, why are you sharing... [MORE]	Pier Johsnon	Nov 13, 2007 02:45
It is agreed among the freed that the powers that beed have no need to feed on their own carnage.... [MORE]	ALEX S. GABOR	Nov 12, 2007 15:48
More and more technical, high paying jobs are going over sea's. This is crazy and we need to shutdown a... [MORE]	CW	Nov 12, 2007 15:48
This article is top news on the Hal Turner Show. I hope the Federal Government collapses. [MORE]	Mike	Nov 12, 2007 15:44
This guy is definitely a bear. [MORE]	Mike Foti	Nov 12, 2007 15:37
I think the guy is drinking too much wine at 175.00 a bottle. Is the market over due for a... [MORE]	Randy	Nov 12, 2007 17:44
yes you can have a roi of 175%-especially if large portions of your money is invested overseas!!!!!!!!!! [MORE]	ehiemere	Nov 12, 2007 23:16
Hello!! 175% isn't an interest rate, it's the yield on his hedge fund and you can bet your life that... [MORE]	jackiebaron	Nov 13, 2007 04:30
Having the foresight to see (at least 4 years ago) that the real estate market would go down in flames... [MORE]	Jack	Nov 12, 2007 15:36
The deflation of currency... I don't understand how this is being interpreted as the end of the US economy. If our... [MORE]	mark	Nov 12, 2007 15:25
Not appropriate to publish Mr. Melchor's remarks as a future prognosis. Mr. Melchor, an admitted bear, would naturally wish to... [MORE]	Cyro	Nov 12, 2007 15:03
Back in the late 90s when the Asian markets had dropped dramatically over a short period of time and Mexico... [MORE]	Goodbye Natalie	Nov 12, 2007 14:48
too much debt, too many billionaires, too much taxation, too many attorneys, too much fat, too many people, too much... [MORE]	phil	Nov 12, 2007 14:39
That we are in unique times is a common (and always true) statement that always pops up as if the... [MORE]	joe stafura	Nov 12, 2007 14:38
I hope this guy is wrong. Then again, he apparently is smart enough to generate a 175% return on his... [MORE]	Mike Foti	Nov 12, 2007 14:37
WHile the dollar is weak by historical standards for sure, this is after it being unusually strong. It had to... [MORE]	Shaun	Nov 12, 2007 14:36
I have seen this coming for about 5 years , and the current real estate dilema is a product ,... [MORE]	Bob Graham Las Vegas	Nov 12, 2007 14:31
This "news report/editorial/whatever" seems to be more of an advertisement for Balstera Capital Partners than as a legit news item,... [MORE]	SilasSez	Nov 12, 2007 14:21
The Central Bankers who manipulate economies around the World for their benifit always win from these economic disasters. Of course... [MORE]	Aldo Watts	Nov 12, 2007 14:20
What the Bush Administration, Fed and Wall Street can't see is the American Economy, which purchases over 30% of all... [MORE]	G.	Nov 12, 2007 13:59
Is he kidding? Buy gold now? It's already $800 an ounce, and the highest I can remember is just short... [MORE]	Jay	Nov 12, 2007 13:51
Mark-o made the comment that the reason there is a need for foreign trained workers is based on too few... [MORE]	DKM	Nov 12, 2007 14:30
The US Dollar has been inflated by multiples so when you talk about the record highs from 1980, please refer... [MORE]	Peter Spina	Nov 12, 2007 15:19
If you include inflation, $800 gold in 1980 is equal to $2142 gold in 2006. So relative prices are still... [MORE]	Bill Bob	Nov 12, 2007 15:23
what we are witnesssing is a long range play ,which was written years ago.Even our politicians do not know they... [MORE]	B. Kuhl	Nov 12, 2007 15:51
Yep Gold. Look how it escalated during the depression era. More importantly look how it dramatically appreciated during the high... [MORE]	Willy	Nov 12, 2007 16:31
The U.S. is a business....and how you run a business reflects on your success. How you treat your customers (other... [MORE]	Doug	Nov 12, 2007 18:58
Ron Paul's idea of eliminating the Federal Reserve banking-cartel, and getting America back on a sound currency is our only... [MORE]	ron heringhauser	Nov 12, 2007 13:50
Fully agree that a bigtime recession is coming soon. Problem I have is that the GW Bush Administration has contributed... [MORE]	Mike Adams	Nov 12, 2007 13:48
The bad news is that recesion will (hopefully, temporarily only) lower the average living standards of working Americans. The good news... [MORE]	A Reader	Nov 12, 2007 13:31
Is everything these days the worst ever. I don't know about anyone else but I've had the best 7 years... [MORE]	James McCue	Nov 12, 2007 13:30
Both major political parties continue to recommend and implement policies that guarantee our inevitible economic collapse. These include: 1.) Interventionist... [MORE]	Frank Kellam	Nov 12, 2007 13:23
They have been calling our economy a consumer driven economy for years. In truth they should be calling it a... [MORE]	Raymond Allen	Nov 12, 2007 13:19
If a currency is debased by the banking controllers, then why wouldn't prices rise on the goods companies sell and... [MORE]	Carl Schattke	Nov 12, 2007 13:17
Wow. Ballestra is a bear fund, meaning it makes more on a falling market because it uses short sale models... [MORE]	Chicagolawyer	Nov 12, 2007 13:16
If your expert had any lick of sense he would understand that during the 1930's we had a depression not... [MORE]	bob johnson	Nov 12, 2007 13:15
Spoken like a true Demacrat. Always wallowing in worst case senarios. Maybe Global warming will end humanity's time on earth... [MORE]	Massapequa Mike	Nov 12, 2007 13:06
People are spending money they do not have. In this lies the solution. When you do not have the income... [MORE]	Todd	Nov 12, 2007 12:53
If one talks long enough; some eventualities will occur in due course of information volume. Stick that lightening rod up... [MORE]	Jay	Nov 12, 2007 12:32
Jimmy Carter: Over 20% Prime Ineterest Rate, Over 10% Unemployment Rate, Over 10% Inflation rate. The economy is expanding right... [MORE]	MMW	Nov 12, 2007 12:22
...I have sent 860+ resumes since 14.June.07; I'm a graduate of high school, college, trade school & 'adult.continuing.edu' efforts... [MORE]	R.g. Frano, N.R.-E.M.T.-P, A.C.L.S.	Nov 12, 2007 12:22
Funny thing about this so-called talk, the people who always stand to benefit are the one's doing the talking. Our... [MORE]	Schratboy	Nov 12, 2007 12:20
While I agree that we are heading towards a 1981-82 type recession it wont be for a few more years...2010-2012.... [MORE]	Joey	Nov 12, 2007 12:58
I agree with the last comment. Rockerfella and his elitist friends are puppeteers, and we ae the puppets. I do... [MORE]	George	Nov 12, 2007 13:19
Talk like this is just more of the media attempt to push the economy into a recession. For years we... [MORE]	Jake B	Nov 12, 2007 13:47
so, some hedge fund worth 350 million says there will be a recession worse than the 30s. this is worthy... [MORE]	cousin brucie	Nov 12, 2007 17:21
"It's the campaign issue stupid" The democrats have to have something to run on, The war must going well because... [MORE]	Dave DeBord	Nov 12, 2007 17:40
Yep.. I watched 'The Money Masters' on Google Video and that was a real eyeopener. [MORE]	fhb	Nov 13, 2007 13:16
My three year old grandaughter appears to have more insight than Jake. Evidently Jake thinks a credit card is a... [MORE]	Dale	Jan 12, 2008 16:48
Even though most of the Wall Street crowd don't talk much about it, there are grudging admission that our out-of-control... [MORE]	Mike Brooks	Nov 12, 2007 12:20
Free trade isnt repsonible for our economic problem, that's ridiculous...it is easy money since 1998 that created the tech bubble... [MORE]	Joey	Nov 12, 2007 12:59
China rules us economically. Thanks to brilliant planners like Sam Walton and his schlock Wal Mart stores. The mortgage thieves are... [MORE]	Brian Foster	Nov 12, 2007 13:01
Jim Melcher has been talking up the same story for years, and why, because he has the most to gain... [MORE]	Matt	Nov 12, 2007 13:01
Your right to a certain extent, but a bigger factor is this: We have been buying on credit in this... [MORE]	Doug	Nov 12, 2007 13:08
The banks and mortgage companies made horrible loans in mass for short term gains to boost stock prices. They deceived... [MORE]	Andy Marks	Nov 12, 2007 13:53
Anyone who has studied American or World History during the 1920's and 1930's knows that the Great Depression in the... [MORE]	ED Jones	Nov 12, 2007 13:57
The idea that Americans with a high level of technical skills are being "replaced" by cheap foreign workers is nonsense.... [MORE]	mark-o	Nov 12, 2007 14:16
The Robber Barrons old would be proud of the new Greedy Grabbers. When this propped up joke of an economy... [MORE]	Guiedo in FL	Nov 12, 2007 14:42
I recently hired a guy from India with a masters degree in engineering. The guy did not even know what... [MORE]	F Hughes	Nov 12, 2007 14:46
The USA is made in The Peoples Republic of China. Welcome to the 21st Century. [MORE]	Brent	Nov 12, 2007 14:47
The world market is what is going to save our economy, we are high tech, with plenty of good jobs... [MORE]	Tim	Nov 12, 2007 15:01
I am always amused at the people that talk about the decline of math / science skill and it is... [MORE]	UrDrWho	Nov 12, 2007 15:02
Just the typical talking points of the left, democrats and socialists (communists minus the firing squads). Like Mark said, restriction... [MORE]	John	Nov 12, 2007 15:05
Since science and engineering jobs can be outsourced to foreigners (language and culture being less of an issue), the salaries... [MORE]	Bill Bob	Nov 12, 2007 15:31
Mike your absolutely correct. Business practices today involve outsourcing key engineering positions to 3rd world countries. I've seen it done... [MORE]	tony	Nov 12, 2007 15:33
Taxes! That's the source of all our ILLS! Most former Soviet east-bloc countries have gone away from the "progressive" tax... [MORE]	The kid	Nov 12, 2007 15:39
if trade is done fairly. However, that can only be done between countries based on similar economic policies. The current... [MORE]	Dokidiver	Nov 12, 2007 15:45
Recession? Try Depression! (laughing) What the f*** is a prolonged or "long" recession. AMERICA deserves this, and until it gets rid... [MORE]	Anthony	Nov 12, 2007 15:58
Mark-o hit the nail on the head when he put "Americans" in quotes. Who is an American? It's anyone drawn... [MORE]	Dovi	Nov 12, 2007 16:01
I'm for free trade and conservative. Any talk of recession is a precursor to big banking asking for a bailout... [MORE]	Gaffer	Nov 12, 2007 16:10
I am in management in a Fortune 100 company and what I say I could not never say at work... [MORE]	Outsourcing is bad	Nov 12, 2007 16:17
You sure its not Mel Brooks? Economics is a science best served cold. Our outsourcing of production in the current... [MORE]	RatFanner	Nov 12, 2007 16:46
Folks,its failure of leadership from the top for the passed several adminstrations and Corporations selling America down the tube. This... [MORE]	Nawang	Nov 12, 2007 16:53
Calls for restrictions on trade, when scratched hard enough, generally show nostalgia underneath. The more pathetic version asks us to... [MORE]	raul tsan	Nov 12, 2007 17:07
Being a mexican citizen and a political analyst, I would tell you all that things look pretty bad from where... [MORE]	Vicente Licona Galdi	Nov 12, 2007 19:07
I can go on for hours on this topic but here are the basic points of what I have to... [MORE]	Martin CPA In CT	Nov 12, 2007 19:13
In the unlikely event of Hughes scenario, the wealthy will simply hire Blackwater mercs to snuff plebeian mob leaders. Perhaps... [MORE]	Robert	Nov 13, 2007 01:51
A great idea, we need to change our voting ideas of the past and vote for someone who is willing... [MORE]	terry lawrence	Nov 13, 2007 01:55
I was formerly employed as an engineer at one of the big Silicon Valley corporations. The company purchased a Chinese... [MORE]	Jason dinAlt	Nov 13, 2007 03:09
Nawang what is a "sheap"? I do not think your advice is predicated on real knowledge. I love the guru's... [MORE]	Islandeagle	Nov 13, 2007 20:52
To the MATRIX. There sure is a lot of people in denial on these posts. Just remember...throughout history banks have... [MORE]	Snadmaster	Nov 13, 2007 21:21
This looks like the handiwork of Mike Nifong. Oh, I forgot he's in jail and disbarred. [MORE]	Kashdog	Nov 16, 2007 03:17
The fact is this ball has been rolling since the meeting that may or may not have transpired on Jekyll... [MORE]	Tom Liddle	Nov 16, 2007 21:46
True. We are sellin' ourselves out faster than you can say "FOR-SALE".Speaking of FOR-SALE, that's what our CONGRESS is. Here's... [MORE]	d.a.n	Nov 22, 2007 09:39
How can we be outsourcing all the jobs you write about , when we have a 4.7% unemployment rate and... [MORE]	william huber	Dec 17, 2007 16:42
Uh, the worst since the 1930s? You mean even worse than the '73-74 recession when we had wage and price... [MORE]	urt	Nov 12, 2007 12:05
Talk of Worst Recession Since the 1930s And the bird flu and G.W. and on and on. When do we start... [MORE]	brian	Nov 12, 2007 12:02
I am old enough to have lived thru the depression of 1930 and was living on a small farm when... [MORE]	Raymond A. Kemper	Nov 12, 2007 12:01
read this [MORE]	lucien coronel	Nov 12, 2007 11:56
I don't see how these other currencies would be able to weather the maelstrom of the American financial meltdown. Their... [MORE]	warren	Nov 12, 2007 11:54
"The sky is falling" always the naysayers. They said the same thing in the Savings & Loan Crisis; global warming... [MORE]	Clifford Michael	Nov 12, 2007 11:53
True. It is cyclical. However, someone, somewhere, sometime has to be in the downturn of the cycle. You can't ignore... [MORE]	tf	Nov 12, 2007 17:01
Greed does, in fact, drive the banking and real estate markets. The worst is, however, the clear proof in the... [MORE]	Tom Ritchie	Nov 12, 2007 20:12
the financials r manipulating this mkt 10 bil. write dwns every week for last 7 months they all know residential... [MORE]	jeff	Nov 20, 2007 08:47
this recession has been forestalled for 20 years. the economic growth which has happend since the '90s has been fueled... [MORE]	phil	Nov 12, 2007 11:45
Do you advise that I get a breeding pair of goats as a hedge agianst this terrible future? [MORE]	Bob Burns	Nov 12, 2007 11:36
The World is moving into the next great Depression and the American Democrats can't wait to REALLY BE IN POWER... [MORE]	john smith	Nov 12, 2007 11:28
You know I am sick of this type of crap. We are such a great hardworking nation. Yet the powers... [MORE]	Sick and Tired	Nov 12, 2007 11:15
No problem, just put everything on the credit card like shrub and the government does. Let's make future generations pay... [MORE]	R.J.	Nov 12, 2007 11:14
pardon me, but wouldn't a recession cause the demand for gold to plummet? Recessions cause deflation. Econ 101. [MORE]	Tim	Nov 12, 2007 11:06
run run. The sky is falling. [MORE]	john micklos	Nov 12, 2007 11:05
In reading your aritcle I was reminded of a seminar my brokerage office attended in the min 90's. The name... [MORE]	wcampbell	Nov 12, 2007 11:00
The Banks created this mess just like the Savings and Loans did in the 80's. They just got greedy. The... [MORE]	Jeff in Miami Beach	Nov 12, 2007 18:10
American economy is interlocked with the world economy--it will not go down substantially. There will be much integration and homogenization... [MORE]	j bell	Nov 12, 2007 19:54
My entire portfolio is just like this guy's. I don't have investments in the Swiss Franc or the Yen, but... [MORE]	Dale H	Nov 13, 2007 00:48
I sure love my U.S. rare gold coins. [MORE]	Tommy John	Nov 12, 2007 10:56
Hedge funds make money when the market goes down and this guy is telling you to "run for the hills"... [MORE]	Scot	Nov 12, 2007 10:54
The sky is falling! And the world is cooking! Another Chicken Little, Al Gore, gloom and doomer. Sounds like the next... [MORE]	Rae Lynch	Nov 12, 2007 10:52
In my essay, "Open Letter to Walter Williams," I posit that America's financial decline is being engineered for a certain... [MORE]	Deacon Elurby	Nov 12, 2007 10:51
I think we could easily see at least a 30% decline. Too many insiders feeling we could see a 6000+... [MORE]	Erik	Nov 12, 2007 10:31
bad news sells,that is what dorfman is selling! nothing more! home loan companies sold mortgages to people earning 1500/month,and were... [MORE]	mike e. coon	Nov 12, 2007 10:28
THE ABSOLUTELY BEST ARTICLE YET ON WHAT IS COMING DOWN THE ROAD...........houses doubled and are going to rebound 50% less... [MORE]	catherine	Nov 12, 2007 10:24
Now is the time to put your funds in conservative funding thru the 401k Krissy.. [MORE]	Krissy	Nov 12, 2007 10:22
Sir it has been a long time since I have seen a comment from you. What you state herein, for any... [MORE]	Hank Swain	Nov 12, 2007 10:18
Speaker of the house and Reid have just introduced a bill on Friday to eliminate our tax and other incentives... [MORE]	M Baker	Nov 12, 2007 10:08
So, you use one source to tell you the market is collapsing. What is the point of playing Chicken Little?... [MORE]	William Bowles	Nov 12, 2007 10:01
Every time I read an article about doom and gloom, it is written by a hedge fund manager.........go figure! You... [MORE]	STEVE COCHRANE	Nov 12, 2007 09:55
I will be the worst recession since 1930's if the demo raise taxes. [MORE]	neal	Nov 12, 2007 09:50
Mr. Dorfman appears to be one of the few who realize what a dire economic situation we are in. When... [MORE]	Marcie Williams	Nov 12, 2007 09:49
I believe that the so called "Recession" from the 1930s was called The Great Depression. [MORE]	GAC	Nov 12, 2007 09:46
Lions and Tigers and Bears! [MORE]	Lorin Friesen	Nov 12, 2007 09:45
...when idiots like Dorfman report what even bigger, but self-serving and agenda-driven idiots like Mercher have to say. "Not a... [MORE]	Paul Stifflemire	Nov 12, 2007 09:44
We can only interpret Melcher's prediction and your reporting of it by knowing in advance both of your political identifications.... [MORE]	aciongoli	Nov 12, 2007 09:27
Barack Obama can fix this mess!!!!!!!!!!!! Obama in 08". Otherwise, we in for the biggest mud-slide in history................ But folks are too... [MORE]	Obama in 08"	Nov 12, 2007 09:24
Thought it would be easy to throw one's lot in with Mr. Melcher, let's hope that he isn't quite right... [MORE]	Karl Lingenfelder	Nov 12, 2007 09:18
Man! Ya got to love it! Everybody out of work in the U.S.A as the money become worthless. Germany in... [MORE]	Dan White	Nov 12, 2007 09:17
typical democratic view of our economy, gloom and doom.......I for one am staying in the market..... [MORE]	bill clinton	Nov 12, 2007 09:17
You know, I'm tired of the folks being interviewed when it comes to our GDP Health they will be all... [MORE]	Christopher Gonzalez	Nov 12, 2007 09:15
The last party to occupy the White House during a depression was a Republican (Herbert Hoover). FDR with his "great"... [MORE]	twa	Nov 14, 2007 02:04
Seems your being a bit gracious with your praise there... I read the name Jim Melcher nothing strikes a spark...... [MORE]	yirmin snipe	Nov 12, 2007 08:58
Yeah right! This guy is completely wrong and ignoring several facts. China's economy is on fire, as well is Russia's.... [MORE]	Phillip Allen	Nov 12, 2007 08:54
How can you take your money out of stocks without incurring huge capital gains taxes? Some people might be locked... [MORE]	R.Bodner	Nov 12, 2007 08:49
The article is dead on and for a reason. The Federal Reserve, established in 1913 (which is as "Federal" as... [MORE]	JB	Nov 12, 2007 08:47
The issue is still TIME. A wide ranging asset management portfolio (with foreign stocks and funds) that includes about 70%... [MORE]	sanjosemike	Nov 12, 2007 08:45
1930s? Its far worse, the storm that it coming.. [MORE]	Bill	Nov 12, 2007 08:39
The Banks, The wall street bankers, The investment bankers world wide, The federal Reserve, Congress and the senate....The current and... [MORE]	Oliver Bateman	Nov 12, 2007 08:39
This "bear" should hybernate for a couple of years, or pick up his marbles, buy a island somewhere, and get... [MORE]	DON PULLEN	Nov 12, 2007 08:39
The man runs a hedgefund and thinks we're in for dive. And the sun came up this morning. [MORE]	sparsons	Nov 12, 2007 08:37
you should be embarassed for peddling this 'recession' trash . Here's a quote from your vaunted Mr melcher, dated 7/25/05,... [MORE]	Thomas Kenny	Nov 12, 2007 08:36
Check it.. [MORE]	Bill	Nov 12, 2007 08:34
Do not purchase GLD!! The ETF is at an all time high and is going to drop like a rock.... [MORE]	mike	Nov 12, 2007 08:29
With all due respect to Mr. Dorfman, what we had in the 1930s was not a recession, but a depression.... [MORE]	John T. Anderson, Olean, N.Y.	Nov 12, 2007 08:19
should i transfer high risk funds to very low?...................auto worker honda,401-k [MORE]	bob lewis	Nov 12, 2007 08:08
of the end. there, i said it. you can laugh at the nay sayers now, and those who are hoarding. you can laugh,... [MORE]	phil	Nov 12, 2007 08:05
what gibberish. the people cited in the above article fail to mention that the banks are making out like robin... [MORE]	dennis braunreiter	Nov 12, 2007 08:01
How much debt can the nation bear? [MORE]	David Thaggard	Nov 12, 2007 07:54
Look @ cycles for the past 150 years and regardless of the supposed "Fed reserve to end all major swings"... [MORE]	Rick Levandowski	Nov 12, 2007 07:52
For 15 years I was Series 7 licensed (stockbroker person) and then for another three years I was an RIA.... [MORE]	UrdrWho	Nov 12, 2007 07:52
this guy is frothing at the mouth hoping for an enormous recession so he can cash in. He wins, you... [MORE]	republican	Nov 12, 2007 07:52
How much faster would this happen if the United States, Isreal, Iran, Syria, Lebbanon, Irag, Pakestain, and Jordan, broke out... [MORE]	Larry Pippin	Nov 12, 2007 07:49
Looks like GWB struck again! Dang is there anything this man doesn't mess up. We had a perfectly good economy... [MORE]	steelwillin	Nov 12, 2007 07:30
I have seen no evidence to support a given value for any stock market index. Who says the Dow at... [MORE]	grumpy	Nov 12, 2007 06:56

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