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Greeting Greenspan Recession

by das monde Tue Oct 25th, 2005 at 04:05:56 AM EST

After occasional online voting at pop-conservative NewsMax some time ago, I keep receiving their newsletter. Sometimes it is fun: you can get a "Top 10 Colleges for American Values" list, or ex-Dem Zell Miller's urgent letter supporting Blackwell for Ohio Governship.

Today's newsletter subject was "After Greenspan, a Major Recession". That's how "fiscally responsible" libertarian policies end... and could anyone anticipate that?!

Accolades are pouring in for Greenspan, but Financial Intelligence Report reveals his biggest legacy may be two of the nation's greatest bubbles (dotcom and real estate) and a coming, massive recession.

Time to brace yourselves!

The Financial Intelligence Report is the financial news monthly of NewsMax.com and Moneynews.com. They also advertise an exclusive FIR report "Profiting From the Greenspan Recession", with the subscription urge and subsequent bonus reports, such as "Protecting yourself from coming Real Estate crash", "Oil: The Critical Key to the World Economy", "The Baby Boom crisis: Prepare before it's too late". Is the state already so bad?!

Here is a little digest of the FIR editorial letter. I guess they copied much from European Tribune like opinion sources:

Perhaps [Greenspan] is a classic "Jekyll and Hyde" character.

In private he is Dr. Jekyll, who has a clear understanding of the depths of America’s economic crisis and its imbalances. After all, he helped to create the problem.

But in public, Greenspan morphs into Mr. Hyde, a champion of the ruling government’s policies – whether Republican or Democrat – a cheerleader hoping to keep the good times rolling.

In late September at the G7 Summit meeting, Mr. Greenspan spoke minimally in public, but behind closed doors, Dr. Jekyll was sounding economic alarms.

French Finance Minister Thierry Breton revealed that Greenspan told other ministers that the United States, the greatest power on earth, has simply "lost control" of its budget deficit.

" 'We have lost control.' That was his expression," Breton told a surprised press corps.  

[While] Mr. Greenspan’s comments in France are fairly shocking, they are also quite obvious.

[Greenspan] obviously knows what lies ahead, and with only months before his departure, he is dropping hints that turbulent times are ahead.

The FIR promisses readers to explain "why some economists warn that the Fed has simply replaced the Dot-Com bubble with a housing bubble that is ready to burst; the unusual phenomenon known as Greenspan’s Conundrum; why UCLA senior economist Christopher Thornberg calls the U.S. economy a "dead man walking"; how to invest in today’s environment of rising interest rates; a warning for hedge fund investors; why personal debt is soaring and what that means for investors.

They see real Real Estate bubble burst:

[There] is growing evidence that the real estate bubble is starting to burst.

While the end of summer is traditionally a slow time for home sales there are many other signs that the boom can’t continue much longer including growing homeowner debt, and deteriorating mortgage quality.

[The] real estate bust, primarily focused on residential properties will hit the U.S. economy like a 2-by-4 whacking one in the side of the head.

[Those] who believe the boom will never stop in the United States need only look to Britain and Australia , where the real estate party has come to an abrupt end. In Australia more companies have recently issued profit warnings than at any time in the last six years.

Blaming rising interest rates, a declining property market and overly optimistic economic forecasts, 155 companies reduced their profit forecasts in the six months leading up to June—more than double the number from the previous survey.

This news may be ominous for the U.S. economy.

But they predict that there will be an excellent chance to profit from the "Coming Oil Price Collapse". They stress that they correctly predicted the oil price spike at $60, and now they are sure:

We predict that rather than skyrocket, oil prices have been severely exaggerated through manipulation. We have been pounding the table stating that there is plenty of supply to meet worldwide demand, and soon those hedge funds will be dumping their oil contracts like there is no tomorrow.

Even Steve Forbes, editor of Forbes magazine predicts that skyrocketing oil prices are just temporary and that a massive price collapse will dwarf the Dot-Com crash that began in 2000.

[Many] of the “doom and gloom” forecasts of “peak oil” are based upon a common misunderstanding about oil supplies. Forbes blames the oil price spike on rising inflation and aggressive buying on the part of burgeoning Pacific Rim countries.

In fact research tells us that this it the fifth time the world has "run out of oil."

Dire warnings of impending shortages like those we are now hearing about were also issued just after World War I. And the “permanent oil shortage” of the 1970’s gave way to the glut and price collapse of the 1980’s and on and on.

Would you trust FIR or subscribe ($179 per 2 years) ? ;-)

And these are the secrets of the Right???

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Tue Oct 25th, 2005 at 06:15:12 AM EST
They obviously know what lies ahead. They see the pyramide game, and get ready to switch to new social (and explotative?) orders. Or not?
by das monde on Tue Oct 25th, 2005 at 06:38:33 AM EST
[ Parent ]
Duh... Now I don't know where to invest any more!

Oh, but Forbes said "inflation", they said "inflation"! I'm going to get me some gold!

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 25th, 2005 at 07:32:40 AM EST
You could also go for inflation-indexed bonds.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Oct 25th, 2005 at 07:36:34 AM EST
[ Parent ]

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