| HappySqurriel said: To be a little selfish, I'm looking forward to the collapse ... The bulk of my portfolio was recently converted into cash because I anticipated the debt ceiling debate to be resolved at the last minute, which I thought would create a down market and a lot of buying opportunities. While my prediction was only half correct, the coincidental timing of the European debt crisis worsening may make my timing perfect (regardless of whether it was just because of luck). Now, my next prediction will likely be as accurate as my previous one (which isn't saying much) but I would anticipate that we will see a week or two of the market struggling, followed by a rudimentary plan being put in place to ease the debt crisis which will cause a short term rally, the plan will fall through because Germany won’t agree with the terms creating another downturn for a week or two, and then a new plan which Germany will agree to will be put in place and over the next 6 to 12 months the markets will recover almost everything that was lost. |
Eh, I don't mind the collapse either, but I am worried what the results will be. Last time we had a big tumble in 2008, we had wonderful George W. Bush putting billions into the bailouts via TARP and then Obama's failed stimulus plan. The US has a penchant for doing the exact opposite of the right thing, usually. Fortunately, we may be tap out of money this time as our debt limit increase wasn't large enough for significant monetary action.
In my anecdotal case, my dear Grandmother has pulled out $200,000USD+ from her bank and bonds and has it in cash in case there is a run tomorrow. Maybe a little extreme, but its not like she was earning anything from CDs, ect anyway.
edit: Bloomberg reported that the Tel-Aviv stock market was down 10% today, the worst day in trading since the .com bust in 2000.
Back from the dead, I'm afraid.
