Sunday, August 7, 2011

UH-OH: DOW 9000 ON MONDAY? MAYBE... AND A FEW OTHER DIRE SCENARIOS...

THE MARKETS IN THE MIDDLE EAST OPENED WAY DOWN. ASIA OPENS IN A FEW HOURS.

UPDATE: PANIC ATTACK HITS TEL AVIV STOCK EXCHANGE.

WHAT MIGHT HAPPEN?

WELL, THERE IS NOT ANY GOOD NEWS TO REPORT.

SO ODDS ARE, WHATEVER HAPPENS IT AIN'T GONNA BE PRETTY.

HERE IS A POSSIBLE SCENARIO:

IMHO: PEOPLE ARE GOING TO REMOVE MORE MONEY FROM THE STOCK MARKETS AND HOLD IT IN CASH.

A 10-15% CRASH WOULD HAPPEN TOMORROW IF IT COULD, BUT GOVERNMENTS PROBABLY WILL HALT TRADING BEFORE THAT HAPPENS - ALL AT ONCE, BUT THEY CANNOT STOP IT FROM HAPPENING.
  • MASSIVE LAYOFFS WILL FOLLOW WITHIN A WEEK.
  • TAX RECEIPTS WILL INSTANTLY GO DOWN, AND GOVERNMENT EXPENDITURES WILL IMMEDIATELY GO UP.
  • DEFICITS WILL INCREASE.
  • AS WILL PRESSURE ON OBAMA.
  • HE WILL ACCEPT GEITHNER'S RESIGNATION BY THE END OF TH DAY TOMORROW AND APPOINTS... WHO??? BUFFETT. OR BILL CLINTON. (I MEAN IT'S GOTTA BE A GRAND SLAM, POLITICALLY IN ORDER FOR THE NOMINATION TO PASS BOTH HOUSES IN A DAY. IOW: THE ADULTS TAKE OVER.)
  • MARKETS REMAIN CLOSED TUESDAY.
  • OIL DROPS TO $5O.
  • ITALY CRASHES, AND THEN SPAIN AND THE EURO CRUMBLES
  • FED ANNOUNCES QE3.
  • OBAMA APPOINTS BIDEN TO REPLACE HILLARY AS SECRETARY OF STATE, AND REQUESTS THAT THE SENATE CONFIRM HILLARY AS VEEP.
  • OBAMA ANNOUNCES HE WILL NOT SEEK A SECOND TERM.
  • THE MARKETS STABILIZE.

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