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How gullable are you guys and gals??

This Cheerleader is pumping and dumping you?

THE BIG SUCKING NOISE YOU HEAR IS THE MONEY BE SUCKED FROM YOUR POCKETS!!

Including a Q & A with the world's leading Austrian economist, Dr. Kurt Richebächer, highlighting ominous parallels to 1930.

Almost Every American Economist Is Dead Wrong

The "Bogus Recovery"

It's not what you don't know that will hurt you; it's what you think you know that's dead wrong and that can destroy your wealth.

Fasten your seatbelts, investor. You're in for a wild ride. Yes, I know that almost all you hear in the mainstream media is that the recovery is well under way. According to them, "Happy days are here again"... or at least they will be soon... But the truth is something quite different.

THERE IS NO RECOVERY.

It's bogus. This is a Bogus Recovery. Americans are being lied to. Wall Street, politicians and the media are all doing everything they can to keep consumer confidence high. They want to keep consumers consuming and investors investing. It's understandable. But it's also highly dangerous. Do not become their victim.

Stocks can go nowhere but down right now. In fact, if they return to normal valuations, the stock market could easily fall by 60%. And that is likely to happen. Investors who are not prepared will be in for a rude awakening.

In the aftermath of the 1930's and the 1970's, you could retrospectively identify the major economic damage that the bear markets in those years were discounting. In the 70's, it was the damage to assets caused by LBJ's guns-and-socialism inflation and continued high taxation in a confrontational international environment.

I do see some areas where concern leading to correction could come from. The status of the dollar as a reserve currency makes the U.S. markets more beholden to foreign opinion of the dollar and our market. Bad loans worldwide could be brought to account, Japan leading the list but American banks participating in a huge writedown. Some combination of the two could drive U.S. interest rates higher despite Fed action -- the bond market could effectively do what the Fed, in its mistaken policy, did in 1929 and 1930 when it tightened in the face of need for liquidity. Inflation could return, driven by foreign markets' repatriation of dollars. It could be any number of things -- but I don't see the underlying damage to the world economies that was caused by World War I and its huge war debts (which caused widespread devaluation or delinking of world currencies from gold and silver), or to the U.S. economy in the 70's by the discounting of the Vietnamese War's economic cost, with the first OPEC oil shock piled on top of that, all under the cloud of perpetual confrontation with the Soviets, who had achieved strategic superiority in their nuclear arsenal while we fought in Vietnam. There are a lot more favorable underlying economic realities this time around. It would take war with China, and possibly the use of nuclear weapons, to set economic confidence back the way it was in the 1930's -- are those scenarios likely ?

Stocks can go nowhere but down right now. In fact, if they return to normal valuations, the stock market could easily fall by 60%. And that is likely to happen.

I agree that we are likely in a secular (long term) bear market. But just as one could lose money in the last big bull market by getting caught in the cyclical (shorter term) bear markets, the downdrafts on the way up, one can also, though with greater risk, make money in this big bear market, if such it be, by catching the bear market rallies.