Well, actually it’s probably going to be less than $2, since JPM will probably fall on Monday.
BSC is the 5th largest brokerage company in America, brought down by the housing bubble created by Greenspan & company. These are the financial innovations on Wallstreet, creating bonus and money out of toxic loans.
Gold and silver both broke new highs. Market on Monday is most likely going to be terrible. I think we may be heading towards another 20% hair cut in the overall stock market.
Your and my life are going to be seriously affected by the current credit crunch no matter what, whether it’s heightened inflation or decreased economic opportunities (layoff). The entire credit pyramid when it crumbles is just not a pretty sight. It’s called deflation. Or more correctly, it’s called asset deflation.
What I expect going forward in the coming decade is
asset deflation and
This is the most lethal combination to wealth destruction. From 1980 to 2000, it was the best combination for wealth generation:
asset inflation and
Those lucky baby boomers who rode the entire up wave in stock markets were fortunate to reach multi-millionaire status. But going forward, I believe few people will be able to preserve their existing purchasing power. Collectively as a whole, the sum of purchasing power for all people has to be reduced thru the process of asset deflation and commodity inflation.
Better preserve your buying power before it’s too late. By the way, I think there is at most another 10% upside in gold. There should be a correction. If you jump in, don’t forget to jump out.