The stock market iz heading for a crash bigger then 2008. For the chart enthusiasts out there, if you want to know where the market iz heading all you need to do iz draw 2 linez on a long term chart:
Line 1 iz from the '75 lowz to the '83 lowz and extend it out to present day..... That line , which comez to 450-475 on the s&p, takes out the bubblicious run from 1985 - 2000 where US manufacturing businesses merged, aquired, and then sold out the entire US manufacturing base that waz built up since WW II to foriegn interests so that we could buy cheap #$%$ from walmart.... Its inflation adjusted line purs us back to the equivalent economic situation of the 70's where we decoupled from the gold standard, muni's ran out of money and defaulted, and NYC went bancrupt under gerald ford.
Line 2. Connect the downward sloping lowz from the bottom of 2002-2003 to the march 6, 2009 devilz bottom of 666. That downward sloping line bringz us out to 575 today. By doing so you take out the bernanke induced manufactured run generated from talf, tarp, qe 1, qe 2,operation twist, 0% fed interest rates "for an extended period of time", qe nov 2012, qe dec 2012, qe jan 2013, qe feb 2013 (collective monthly qe's known az POMO).
So if you idiots want to know where the s&p is heading. its heading to valuez between 475-575 on a 'normal' crash. If we break 450 then we are in a full blown depression and possibly a world war or both at the same time.
Whats going to fail to cause such a catastraphy? Muni bonds (starting with detroit), corporate bonds, swaps and derivativez contracts will be broken, every etf, commoditiez will crash, government pensionz and safety nets, global banking lock ups, housing, commercial realestate, and many many many common stox.
Why will it fail? Because bernanke, the treasury and US politicianz have fired off all their bullets; too big to failerz were not fixed and now hold more risk at less moral hazard then in 2006 and have not changed - no trust.