Experts Say Financial Crash On the Horizon By Patrick A. Heller,
May 20, 2008
Will the big financial crash hit between June 1 and July
At least two savvy market observers (James Turk and Jim Willie)
now expect a major financial crash by the end of July 2008.
Both Turk and Willie have generally been on target in their
commentaries for the past few years, so they can't be dismissed
as raving lunatics.
Elements of this crash include:
" A huge drop in the value of the U.S. dollar
" A major decline in U.S. stock indices
" A sharp increase in debt defaults
" Record levels of corporate and personal bankruptcies
" Soaring gold and silver prices
With so much negative financial news hitting the market literally
almost every day, it would not take that much for their predictions
to come true. What events could cause this?
There are lots of possibilities. Here's one example: The
Bureau of Labor Statistics reported for April that the retail
price of gasoline ("seasonally adjusted") actually
declined while the wholesale price rose by 10 percent. Almost
unanimously, the news media laughed at the absurdly low retail
inflation numbers reported by the BLS for April. If the media
and public wise up to the horrendous distortions and fabrications
in federal government statistics, that alone could be enough
to cause a crash.
Should the economy survive the next 10 weeks, it would still
be a good idea to augment your insurance holdings of gold.
The downside risk looks minimal.