Spending $1 Billion to Restore Fiscal Sanity
by John Harwood
"Peter G. Peterson wants people to focus on what he considers real news: the nation is going broke. Because he wasn't born yesterday, Mr. Peterson, co-founders of the Blackstone Group and a secretary of commerce under President Richard M. Nixon, will spend $1 billion in an effort to get the public's attention. The money, which comes from the windfall Mr. Peterson received when Blackstone went public last year, will finance a media blitz, starting with a documentary, "I.O.U.S.A.". The film aims to startle voters and politicians alike, and summon them to the task of closing the long-term imbalance between what the government".
I am using the Elliot Wave theory for the following prediction:
I usually don’t like to go to graphs but it is important to understand what I am talking about. If you look at the chart (go to link) http://butlerdemblog.blogspot.com/...
you will see the S & P topped in May around 1450 and then proceeded to decline in the latest round of pressure to around 1180 in July which is highlighted by the big bold number 1. The counter trend rally began this month after the S & P bottomed in July. The counter trend rally should reach either the 1293 or 1321.5 areas.
After the counter trend move has completed we will see the resumption of the primary bear market in wave three down!! This wave is known for its large movements in direction and time. This wave can be as large as 1.618 times wave one. Now depending were wave 2 ends and wave 3 begins we could have a decline that reaches the 836 or 807 areas. All this will occur in a very fast manner of 1 to 3 months.
The social and political implications are both scary and intriguing from an analytic perspective. Elliotwave theory asserts that markets moves are dependent on social mood. In essence, the S & P is a measure of society’s psychology (A nod to McCain and Grahm!) Therefore, one can extrapolate what may be occurring in American life if the S & P sinks to the areas this author predicts along with time frames. If these predictions do turn out to be true the proverbial "shit" will be hitting the fan! The DOW and NASDAQ will move in a similar.
Economic Implication:
Double Digit unemployment in 2009
Over 500 Bank failures
Social:
Family members moving in with each other
Increase in homelessness
Social unrest between classes and ethnicities
Maybe another terrorist attack
Political Implications
Obama wins in a land slide
Republican suffer huge losses and the Dems take a filibuster proof House and Senate