"Global Crash fears Sparked, as Famous Newsletter Writer Predicts 5800 Dow this Year."
Timmins/Toronto. World famous swami, newsletter pundit, self aggrandizer and mining stock guru, E. Charters (Bre-X, Argentina Gold, Band Ore, etc..) has called recently for a 5800 Dow this year, a general worldwide liquidity panic, a lower US dollar and a 400 dollar gold price. "We see the Dow as continuously falling throughout the remainder of the year as the funds and small investors see the major gains as no longer possible in growth or traditional industrial paper, and seek to park their money elsewhere. Cash, gold, and initially cheap real estate will be preferred alternatives," said Charters in Toronto recently. "By next spring there will be a major market reversal as shorts accelerate, driving the Dow to an abysmal 3800. Look for more bank failures as the paper/collateral/credit crunch hits. Unpayable debt can only increase in the months to come and this has to hit major institutions. Bush's speech not too long ago about hard times, was not listened to well. He does not write these speeches by himself. It is plain that the US economists see the truth staring themselves in the face. Bubble markets have to lead contractions."
"There is one industry that may lead us out of the worst part of the coming recession, and that is the resource industry. It will burgeon still, as its base costs, while capital intensive, are low in comparison to secondary manufacturing. Such luxury items as gold and diamonds still produce good income in the worst of times. Resource business is a huge consumer of technical products such as software, and hardware, without which it has poor economies. This may lead to a secondary recovery in B2B tech markets as a delayed reaction. Any depression lasts about 15 years. But the worst effects are over in about 5 years. And industrial and creative growth during that period is always greater than during a bubble market, where capital is wasted. Look upon it as a good depression and a growth opportunity as labour will be cheap."
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