I’ve been saying for years now that the U.S. economic picture was facing a startling wake up call when the squeezing of the middle class reached the boiling point, when the housing bubble popped, when corporate America’s cost cutting scraped bone. I’ve been warning of the outer reaches of Global Capitalism, the outer limits of continued growth for the sake of the stock holders, the ceiling of global growth. Lastly I’ve been warning that the economic picture has some startling parallels to the Roaring Twenties, the era just before the U.S. marketplace collapsed and the Great Depression began.
Well no one can predict the marketplace, and no one can predict the stock market, I have no intention of doing so. I am a student of history and I base my beliefs on the past. As we enter the cold bone chilling fall, the time when stock markets traditionally collapse, I feel it is appropriate to get my account on record.
I’m not going to get into the nitty gritty of market details, the market picture painted by forecasters in the media is one of extreme explosion in growth, of Dow Jones all time records and confidence in the market’s ability to weather any storm. This is why I’m worried.
The economies of the U.S. in the 1920s and today are on a strange parallel. First off, they are both over inflated, well above the