What do you think about the economy?

I believe that many are in for a very rude awakening. The bubble is just about ready to burst and when it happens, I anticipate chaos!

Let me introduce you to Graham Summers. Mr. Summers is Senior Market Strategist at OmniSans Research, and he is co-editor of Gain, Pains, and Capital, OmniSans Research’s free daily e-letter covering the equity, commodity, currency, and real estate markets.

Mr. Summers is now saying that the stock market is showing signs of nearing the end of the rally period, which will probably be followed by a sharp decline in the stock market.

I’ve been forewarning of a potential Crash for months now. And the market’s current action is PRECISELY what you would expect for a MAJOR top (increased volatility).

It also gives us a great potential target for when things might get ugly: whenever stocks finally break below this expanding pattern (currently the lower end of the range is 1,045 on the S&P 500).

The issue now is whether this rally gives up this week, rolls over and breaks below the trend line… or if there will be some greater push to the upside.

On the other hand, given the recent jump in the dollar we may be about to see a very serious fall in stocks sooner rather than later. Keep your eye on the lower end of the S&P 500’s trendline. When it breaks, bad times are coming fast.

As with anybody who makes predictions about the future of the stock market or the economy, take it with a grain of salt. For me, this isn’t the only warning sign I’ve seen, nor is Mr. Summers the only person talking about this. In my personal opinion, it is coming, guys. And according to this guy… shortly.

I've been telling people for ages that we are headed toward hyperinflation, and nobody wants to believe me. A lot of people are talking about the GDP right now, but if you compare the GDP chart for the 2000s with the one from the 1930s, you will see that they look very similar. Please, folks, look these up and compare if you don't believe me. Our GDP isn't indicative of a healing economy. While you're at it, compare the stock market highs in the 1930s to the ones we've had since the economy began taking a turn for the worse in this century. You will be shocked at the similarities.

We need to stop printing so much money. It's doing much more harm than it is good. We should have learned from the Great Depression that these bailouts, these stimuli, and all this money-printing doesn't do us any good. We are repeating the same mistakes and it needs to stop.

I look at this type of stuff for a living, and I've talked til I am blue in the face for YEARS about how we have to stop doing what we are doing because it's simply not working. Our consumer confidence has dropped significantly since the beginning of the year. Our unemployment rate has gone through the roof since the beginning of the year. Is this not enough evidence that throwing money at the problem causes more problems? What the hell, people?

I think it sucks. Unemployment is rising. Obama and the democrats are actually vilifying profit and prosperity and using it to push their agenda. Look what they're saying about the insurance companies, an industry where a 4% profit margin is considered 'good'. But they vilify these industries, their profit and any prosperity. They take over companies, impose what they, government bureaucrats with no experience in business, determine to be adequate compensation levels and even business practices. They raise the minimum wage just at a time when they should be encouraging businesses to hire. Right now, something like 50 percent of those teenagers who would be looking for seasonal or part time jobs cannot find them. Business does not want to pay the arbitrary premium for an inexperienced asset that in many cases will cost them more to train than they will realize on their investment.

Bottom line, this administration is doing everything wrong and even bragging about it. It is really quite amazing. Perhaps the economy will recover. It usually does. But if and when it does, it will be in spite of and not because of this administration because that is the tenacity of the American entrepreneur.

The long term solution is a switch to an economy powered by non-carbon fuel sources like solar, wind, and other renewable and carbon-free alternative fuels.

The short term solution is determining when the financial economy that we have spent trillions bailing out and shoring up can survive the transition to an economy that isn't being propped up through stimulus initiatives and deficit spending, and where we expect them to lend money prudently with sufficient capital reserves and without engaging in the reckless trading of unregulated derivatives that nearly brought them down when the real estate market imploded setting off a falling chain of dominoes.

I think its a three step process and Bernanke et al got the first and second steps right enough. They need to get the third step right and it needs to be sooner rather than later unless you're independently wealthy.

the frightening section is amazingly some people could have no problem if it is actual all there develop into. some people (as we talk's Republicans moreso) comprehend and don't care that it is the place the money is. they only choose a chew of it. The democrats will do a greater perfect pastime this time while they get some veto potential of their very own. they gained't be extremist, and that they're going to have a multitude to freshen up, yet they would be greater prepared to concentration regionally for a mutually as and purely have the force to attempt to superb lots of the errors of the previous decade. I maximum hate the problem of spending greater of taxpayer money (or borrowed money) to private agencies, paying them a lot greater beneficial than infantrymen, and linked mobsters in the party earnings, to hell with the lads, females and infants. And the risk that ignorant electorate won't even question this rip-off. this is like insider figuring out to purchase and advertising!

Good job, you understand what so many refuse to look at.

How about we stop messing with the economy and let what will fail fail, and what will continue continue. There is no way to mess with the economy and bring it out of a recession that has EVER been successful in the long run, other than simply leaving it alone. Bailouts and everything only make it worse. They put extra money into the system which makes the Dollar worth less.

I think that regardless of whether the economy is good or bad it is wise to be prepared for any eventuality one way or the other as much as is possible. It isn't necessary to become a survivalist, but it is wise to be prepared as well as possible. If one lives in as self sustaining a manner as they reasonably can then they are far ahead of the rest of the pack.

If you have the space, do you grow a garden? Have you tried to pay off your debt without accumulating more? Do you double up or make extra payments on your mortgage, or do you live in a rental you can reasonably afford month to month? Do you pay yourself first in the form of savings when you receive your paycheck? Do you live a healthy lifestyle? Do you have a barter-able skill in the event that the economy takes a depression style downturn? Do you know your neighbors and get along well with them?

There are many things that we ourselves have control over regardless of whether the GDP goes up or down. Nobody knows what sort of challenges life may throw at us, but if we try to be as prepared as possible for any foreseeable eventuality, it is a plus to each of us individually. If individuals are better able to survive in any economy, it is good for the economy as a whole regardless of whether the Fed decides to print more funny money or not, and whether or not the banks are lending. Learn to focus on the things which we have control over personally and communally.

It’s scary because nobody seems to know what to do.

I liked the TARP proposal because that would get toxic assets off our lenders’ books and they would have fresh money to lend. Assuming there is still a market for mortgage-backed securities, they would once again have a revolving source of funds. But just buying stocks of the lenders gives them a one-shot infusion of cash that they’re reluctant to lend. I think it was Citigroup that showed a nice profit when it last reported, but virtually all of that was from trading derivatives, not financing mortgages.

At one point, AIG was reported to have $3 TRILLION of credit default swaps on its books. Trading should be controlled, and limited to a percentage of equity so if the mortgage industry falters, the traders won’t be totally wiped out. It was reported that AIG had to retain some of its “key” people because only they understood the trades they had made and could help to unravel them. That was insane!

The DOJ needs to look into BAC’s purchase of Merrill Lynch to determine if Ben Bernanke and Henry Paulson really did force Ken Lewis and his BOD to go through with that purchase. It all but ruined one of America’s best banks. And add Barney Frank and other social engineers to the DOJ’s list. They who forced mortgage lenders to lower their credit standards and make loans to marginal customers during a real estate bubble. Were they too stupid to realize that ALL bubbles burst?

Sad sad sad is about all that comes to mind and we are in a minor depression right now and compares greatly to the beginning stages of the great depression of the 20s// With unemployment in double didgets, Bank closings in the hundreds daily and instead of home sale signs in the front of many homes you see Bank owned signs and a irresponsible clueless imbecile in charge dragging us right back to a time no one ever thought we would see again or ever wanted to///Man you were right Hillary and Biden he's not ready to lead and he's not qualified and there is no time for on the job training// the voters were wrong 3 times in a row so we are outta there////

Ya know I wish we all could meet these so-called Experts that say we all are out of a Recession... I work inside construction and from what I have felt and seen since this Recession accured in late 2007 is that its been a gradual DECLINE in all areas of Construction both Residentual and Commercial. This year 2009, our books show we are about 59% below our yearly average as far as sales and contractors who we work with.. My guess is its about the same everywhere else across this country... Personally I veiw Obama' s econmic plan as a "Smoke & Screen" Plan. They Inflate the Numbers one way and reduce the on-set in case there wrong or they simply exagerate false data too convince average America too think they are on track and policys are working. My gut and my work tells me we are petty far from comming out of this Recession. In may not see any daylight until late 2011 at the earliest!