Markets will crash soon

The markets will crash soon, probably within the next month. We are still in a long term bear market and eventually the bear will take over again, likely before the end of June. The US is still in crisis with unemployment, debt, deficit, real estate and the falling dollar still major problems.

The problems will continue for years. I expect real estate to bottom somewhere in the second half of 2011. High unemployment will continue for years and inflation will be high. I expect the Dow will fluctuate between 7000 and 11000 for many years to come; at least 10 yrs. If it goes below its March 2009 lows or above 11000 during this period, heaven help us. The US is adding liquidity 3 times as fast as Japan and Japan has had almost 2 decades of a fairly flat stock market, the US should not be any different. If it is different then we are in even worse trouble.

Whilst travelling last Christmas, someone overseas said to me; “you know, a big scam brought us here and I believe it will take another big scam to get us out of it”. I hope he was right and I hope they are cooking up a good scam, because the one they are serving up right now isn’t working.