So, what financial moves are suggested in this scenario? 1)stock prices dropping 2)dollar value dropping 3)gold price dropping 4)home prices dropping 5)residential sales, both new and used dropping 6)credit crunch or impending collapse 7)energy costs climbing 8)foreclosures and bankruptcies increasing 9)Republican president with declining popularity
Does this sound like 1929 again? Inflationary pressure to increase from overseas investors starting to dump dollars they've been holding onto the market. Deflationary pressure from possible credit collapse, mostly a "crunch" at the moment. How many have borrowed against their home's equity and how will they be affected? Is the next credit mess after subprime in the home equity markets, especially with home values dropping? Will some who borrowed on home equity find they eventually owe more than the home is worth as real estate values decline? How many want to keep paying on a loan (mortgage, home equity) that's worth more than the collateral, especially if they face other harmful economic troubles in their future? Will the next credit problem be from credit card debts and failures to pay? Will it all just balance out in a year or two and just be a bad memory?
1% of the American Population own 48% of the assets. That stat was about 10 years ago. I would figure this 1% would own about 55% of the assets in America now. My point is that the 1% have the deciding factor to put us in a depression, recession or expansion mode.