Recession time bomb ticking faster, louder

[marmar]

Recession time bomb ticking faster, louder
Published: June 29, 2015 10:07 a.m. ET

Americans are unprepared for the trillions they will lose again

by Paul B. Farrell


(MarketWatch) Yes, the clock’s ticking louder, louder, warns the Economist, “only a matter of time before the next recession strikes.” Unfortunately, the “rich world is not ready.” America’s not prepared. You are not ready.

Get it? America’s 95 million investors are at huge risk. Remember the $10 trillion losses in the crash and recession of 2007-2009? The $8 trillion lost after the dot-com technology crash and recession of 2000-2003? This is the third big recession of the century. Yes, America will lose trillions again.

Especially with dead-ahead predictions like Mark Cook’s 4,000-point Dow correction. And Jeremy Grantham’s warning of a 50% crash around election time, with negative stock returns through the first term of the next president, beyond 2020. Starting soon.

Why is America so vulnerable when the next recession hits? Simple: The Fed’s cheap-money giveaway is killing America. When the downturn, correction, crash hits, it will compare to the 2008 crash. The Economist warns: “the world will be in a rotten position to do much about it. Rarely have so many large economies been so ill-equipped to manage a recession,” whatever the trigger.

With today’s near-zero interest rates, our Fed and central banks worldwide have little “wiggle room” to add more monetary stimulus. And even if Congress decided to act on the much needed, highly effective “growth boosting investment in infrastructure,” today’s zero interest makes it impossible “to launch a big fiscal stimulus.” ................(more)

http://www.marketwatch.com/story/recession-time-bomb-ticking-faster-louder-2015-06-26?link=mw_home_kiosk

[A HERETIC I AM]

1. "Economists have correctly predicted...

Ten of the last three recessions "

[daleanime]

2. kick, kick, kick....

[snooper2]

3. that's why I'm with some friends and we are saving money to buy real-estate at the next downturn

be it 1 year away or 15....buy low sell high- basic math still works


Meanwhile-

Enjoy the greatness that is!

Taylor Swift - Bad Blood PARODY ft. Kendrick Lamar

[yellowcanine]

5. "buy low sell high- basic math still works" Yes, if one can predict lows and highs.

Most people aren't able to. Buy and hold still is the only strategy which is going to work for most people. It probably will not make them super wealthy but if they stick with it they will have enough for a reasonably comfortable retirement.

[sub.theory]

4. Shocked

You mean we can't just let Wall Street get away with the greatest swindle of all time and not expect a repeat?

Well, I'm just shocked!

[Adrahil]

6. Marketwatch has been posting these kind of stories for 5 years...

Of course, eventually they will be right and then crow that they predicted it.

As always, diversify, use dollar-cost averaging and try to guess the market at your peril.