SP500 Stock Market Crash No Depression Followed

Without government corruption and intervention, dynamism or recovery would return to the markets in all forms

The housing prices would sink to the required level for clearing the market. Somewhere in the neighborhood of 1-2x the average take-home salary of a two family household which I think is slinking around $60k pre-tax, and around $48k after tax. That leads to average home prices between $50k – $100k, requiring a further 30-40% drop from where we are now. Dropping that much more is unlikely with the government owning the market essentially for mortgages. The most depressed areas are already experiencing such drops with shadow housing inventories kept off the foreclosure rolls, that would otherwise further sink the average housing price to the market clearing level.

With government intrusion, the dollar will continue it’s downward trek in value until the sheeple finally convert out at the last moment into tangibles. Either that, or the China and Russia tag team might shove the diminished greenback off the forex ledge, then government’s power for intervening will crack along with the illusion of wealth and prosperity we have all grown accustomed to. Thing eggs splattering on a hard floor of reality for the image of the dollar crashing.

The other possibility, though dim, is actual revolutionary conquest by the forces for freedom within the U.S.

This may shape up as a surprise passage of the Ron Paul bill for auditing the Fed. Then a firm and invasive audit of the Fed’s corrupt system will have to be carried out by the G.A.O. and all the dirty laundry aired, along with trials, jail time, and destruction of the corrupt Federal Reserve system. Entertaining, productive, and exciting as this process might be, I also think it incredibly unlikely. Wish I could believe that peaceful methods could restore order for this generation and destroy the monopoly bankers and their fake wealth.

The unfortunate fact is that only force will stop the evil force pervading the system.  This makes the depression stock market and commodity market prediction involve the variables of government intrusion, revolutionary push-back, and eventual economic stagnation.

Predicting Depression for the Stock Market and Commodity Market

1. Both the stock market and commodity markets will see closures before or during 2012 because of some form of violent disruption.
A. U.S. government created fake terrorist attack within the U.S. is very likely.
B. U.S. government sponsored attack on Iran, Pakistan, etc. could launch a larger scale conflict with Russia, China, or their allies.
C. Conflict with Tiawan against China, or even the former Russian satellite states.
2. U.S. secession or revolution movements begin evolving into violence with the offensively attacking police forces, or military of the U.S. government or federalized state, city, county governments. Pittsburgh’s G-20 meeting showed this in process.
3. International banker government bodies such as the U.N., New World order tools will be employed against the U.S. economy and citizens, possibly shutting markets down and turning to a new currency.

Generally, stock markets world-wide will be bad places for preserving or enhancing wealth. Productive farm land will be a better place to invest but outside the U.S. perhaps.