Congressman: Stock Market Will Eventually Collapse
Wednesday, August 29, 2007
Ron Paul says martial law provisions in place to deal with economic discord
Texas Congressman and presidential candidate Ron Paul says that attempts to rescue an ailing stock market last week, during which the Fed pumped in billions in liquidity, were merely a stop gap measure – and that an economic collapse is all but inevitable.
“They think that they can control it but eventually they can’t, as powerful as they are eventually the markets are more powerful,” the Congressman told the Alex Jones Show yesterday.
“The dollar can’t be kept in check because eventually it will come unwound,” he added.
Texas Congressman and presidential candidate Ron Paul says that attempts to rescue an ailing stock market last week, during which the Fed pumped in billions in liquidity, were merely a stop gap measure – and that an economic collapse is all but inevitable.
“They think that they can control it but eventually they can’t, as powerful as they are eventually the markets are more powerful,” the Congressman told the Alex Jones Show yesterday.
“The dollar can’t be kept in check because eventually it will come unwound,” he added.
“But I think the most significant figure we’ve heard in the last few weeks is the measurement between 2000 – 2005, the clear cut admission that real income has gone down, which is a reflection of the dollar.”
Paul explained that recent attempts to pump liquidity into the markets are only a temporary fix and that the long-term effects of doing so spell disaster for the economy.
“The dollar is plunging no matter what you read and hear about and no matter how hard they work to keep the bubble going the only way they can do that is creating more money….causing the dollar to go down even faster, the market seems to be reassured – there’s a contrivance to try to hold this together….but it won’t last, eventually it’s going to collapse,” said Paul.
The Texas Congressman cited the repeal of the Insurrection Act as opening the door to a declaration of national emergency and martial law which could be instituted for any number of reasons, including civil disobedience in the event of an economic downturn and a run on the banks.
“If in 6 months or a year there is total chaos who knows what they might try to do,” said Paul.
The presidential candidate also slammed the abolition of Habeas Corpus as a “very dangerous sign” that plans were being laid for martial law.
“Why would they change them (the laws) if they didn’t plan to use them,” concluded Paul.
Suspicions were raised last week when a mystery trader risked billions of dollars after buying 245,000 put options on the Dow Jones Eurostoxx 50 index, in effect a speculation that the market would crash by a third before September 21st.
The only thing you can say for sure about the stock market is – you never know what it’s going to do.
Though it would be entertaining to watch it fail miserably.
I would consider this news as a cautious “Buy” signal for quality companies with worldwide exposure.
Even if it does, we will not bring back the 1940′s, we are far more capable of bouncing back in today’s society. Stop being so afraid of everything.
With a nation sitting on 9 trillion dollars of debt and Social Security soon to run out of money, it would not surprise me at all if the market crashed. The weakening dollar is the direct result of the national debt (THANKS, GEORGE!)
I would not expect a crash, though. More of a whopping big ‘correction’ like we got in 2001. A 4000-point drop in the NYSE wouldn’t surprise me.
If you don’t know a thing you must know that Ron Paul is a bean short of a full chalupa.
there is a reason the Fed res wont lower the rate right now to bail the market out -that is because their hands are tied and the above is true – bernanke just told congress yesterday that they need to figure out a way to fix this thing before he increases rates -read the 3 articles you decide
http://news.yahoo.com/s/ap/20070829/ap_on_bi_ge/bernanke_mortgages;_ylt=AkNKivHIuBmCfyD0FBOzKJ1v24cA
http://biz.yahoo.com/ap/070829/commodities_review.html?.v=4
http://news.yahoo.com/s/nm/20070826/pl_nm/housing_summers_dc;_ylt=Aul49zQtHziUchPfnc6d6gGs0NUE
sorry one of my links was wrong now it is fixed
here is another
http://news.yahoo.com/s/nm/20070830/bs_nm/usa_fed_wsj_dc;_ylt=AlkQkJeK9YnjHjOYoKVfISC573QA
A lot of contrarian economists and investors would agree on that.. there is a crash coming.. a crash that will make the 1930s crash look like a mole-hill.
One of them has to do with derivatives – there are more money in derivatives than there are in actual stocks. Warren Buffet calls the massive derivatives market ‘weapons of financial mass destruction’.
The other one is the housing market volatility. A lot of Sub-prime, Alt-A, and ARM loans are going to blow up in people’s faces. Mortgage lenders and small banks are going bankrupt. Hedge funds that package CDOs (Collateralized Debt Obligations) and MBS (Mortgage Backed Secruities) are blowing up (eg. Bear Stearns).
And last but not least, the huge population of 76 million baby boomers are going to retire en-masse, in waves after waves. They will start pulling money out of their 401ks and IRAs and pension funds to live on, since they have no more incomes. When they do that, they have to sell their stocks and mutual funds. When 76 million people are selling stocks en-masse, the stock market will crash like a rock in free-fall.
The financial storm of epic proportions is brewing off the shore, and people are not even aware of it.. or they are ignoring it because the media tells them not to worry.
Batten down the hatches, because this storm will not be gentle. If you are smart, you should listen to people like Warren Buffet and George Soros, and protect your investments and your family with sound advise. Hint: the advise that media gives is not always sound, and usually very late when they do realize the fact.
Geez, is Ron Paul the next Jim Jones? If he loses will his followers set up camp in Guyana?
Ron Paul knows what he is talking about. It doesn’t sit well with me that they are diverting troops to do a stint for a year in DC either…what in the H*LL are they planning on US soil!?!
Either you wake up quick and say NO TO THE SPP, or you will be part of the problem by ignoring it and letting it continue to fester to the point that MARTIAL law is declared and we are all scr*wed.
Almost everybody is connecting stock market with real state problems in the USA. I think we have here two different problems. Real state has serious problems that will affect all economy and on the other hand, the stock market prices are too high, so any economic slow down probably will reflect in the stocks prices deeply. Ron Paul can be right because stocks prices are being managed according to the needs of the big banks that can’t allow their profits to decrease. Paul is right again about a temporary fix from FED, and I would add, even the FED is trying to help the big ones, by pumping so many dollars in the economy to save the stock market. Banks grew fantastic last years and now they need huge profits to keep their status and market shares. At the end who will lose? The medium and small investors all over the world. Nobody invest in stocks searching small profits, because the risks are there. The question now is: at the present level of the stocks prices, who believe in high profits this years or in the next? My answer is: I don’t. So if so many investors are thinking this way, I wouldn’t say a crash is coming, but a significant low on prices is inevitable.
It may go down but it will never go away. That is impossible since that means that all companies would be out of business.
This crash will be of epic proportions. It’s what happens when ppl don’t offer to the table anything solid(i.e Just hot air). What makes it even worse is people actually bought into it and still do. So all i am going to say is this. Was it worth it to give up your freedom to chase something that is created merely out of thin air? You interpret it as you will.