Posted on 13 April 2015
There are a few analyzers out there such as Steve Sjuggerud who believe the stock market has a lot more room to go up because less than half of Americans are in the stock market, therefore it won’t go down because there are still buyers on the sidelines waiting to get in. Just look at his newsletter of 13 April 2015.
Pretty much the only buyers in this current market are the Federal Reserve and mostly corporations buying back their own stock and the Japanese banks. The Japanese banks are not as big of buyers as the other two. Once these three groups stop buying into the stock market and there are no other buyers then shortly there after the market will come down. How much down is dependent on how many sellers vs how many buyers. But since there are currently no other buyers at this time it would be safe to say there will be no buyers later on because most people don’t have jobs or disposable income to invest.
When this crash comes few Americans will be hurt but it’s the corporations that will be devastated and in turn the American people will be hurt because the corporations are at such a loss that they will not only be broke but can not retain the workforce.
I predict that when the crash comes the Federal Reserve will inject money into the stock market to help keep it from falling and give out money to the largest too big to fail banks and too big to fail corporations. Thus increasing inflation to such an absurd rate that gold and silver will be king. I suspect that the Dow Jones will fall more than 50 percent and gold will rise to $5,000 by 2018 and silver will rise to $500 by 2020.
Your bank deposits will be confiscated by the banks themselves to pay off their debts. The government will once again confiscate your gold holdings so they can maintain some kind of competitive dominance in the world. However I think they will leave silver alone as it is not seen as money to the bankers but only an industrial metal. If you want to keep your money I think credit unions and local small banks with a few locations who have nothing to do with derivatives will be safe for at least long enough for you to get out of cash completely.