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The PNC Financial Services Group, Inc. Message Board

  • beta_klumps2 beta_klumps2 Nov 11, 2012 4:02 PM Flag

    Swan Dive off the Fiscal Cliff !

    I know, everyone talks how scary going off the fiscal cliff, how we have to avoid it at all cost. But we have been to alot of fiscal cliffs the past 10 years, and yes we did avoid it by borrowing more and living in illusion and kick the can down the road. The election was sobering. Conversvatives lost, but actually gained alot of voters since McCain ran and they won 2/3rds of the states very handsomely something McCain didn't do. Gridlock was a big plus for Republicans, just needed a smidgeon more. So why throw away a fiscally conservative platform, something a runaway spending Federal government needs to become solvent again. I agree with the democrats this is no Greece, this is worse.

    What this country needs is a SWAN DIVE OFF THE FISCAL CLIFF. Both parties need to be sobered not with more debt, bailouts, golden parachutes, etc., we need to kick butt hard and we need to land hard, we need to get our moral compass back, reduce our deficit, encourage businesses to expand in this country, we need to rebuild the middle class who have suffered for 2 decades of declining wealth, optimism and hope, we need to sober the conservatives and liberals into the right course of action. Conservatives believe in personal responsibility, limited government and balanced budgets and you don't spend what you can't pay back or afford and people should take an active role into changing their behavior without government intervention. Liberals believe that government should assume an active role in helping citizens in society and government should take the responsibility to affect change whether they are successful or not.

    A "Swan Dive off the Fiscal Cliff" would create a PLUNGE, the unthinkable, that everyone was trying to avert. This plunge would follow six weeks of negotiations and posturing and pressure from outside interest groups both political, business and religious. And it will surely shake the electorate, Conservative and Liberal.

    The Democrats and Republicans can spend 24/7 to negotiate, widesweeping changes instead of the bandaid approaches of past negotiations. They should spend 6-12 mos, as the country spirals down through austerity, making the necessary corrections that decades of irresponsibility made worse.

    It is hard to see the path to a quick deal before New Years deadline because the players remain the same and both believe they have a mandate. But the positions of both sides has not shifted at all since the failed super committee and the epic battle in 2011 over the debt ceiling.

    There is a bright spot if we do play this "Game of Chicken". If both sides decide to really hash it out and spend 6 months or longer and we do a Swan Dive off the Cliff, I believe both sides will win. Wealth will be destroyed on the Republican side, but will flow to the middle classs, who I hope will be short the market come New Years Eve. Stocks will become cheaper, by up to 90% off November prices. Apple Computer will be down to $100. PNC down to $16. BAC and C down to $1.00. What a way to transfer wealth from the Buffet types who own so much stock that they could never sell it all and would have to watch all that wealth flow back to the middle class. Justice is coming and those with a vision, and the resources will be able to better themselves without no help from the Government.

    Look for DOW target of 6,000 in 2013 and by 2014 - 2015 another sell-off to 2,500 - 4,000. Remember, there is alot of debt, alot of unfunded pension, alot of debt deleveraging that will happen automatically as 90 million baby boomer age daily.

    Sentiment: Strong Sell

92.92-0.38(-0.41%)Oct 21 4:04 PMEDT