*I have been telling people for well over a year to buy guns and stock plenty of canned goods. These ijiots in Congress and the whores on Wall Street do not have a clue about what they've done and newsflash: the mid-term elections will not make one bit of difference. If you think pubbys replacing jackass' is going to turn this economy or country around you are sadly mistaken or just plain stupid. Reagan gave the keys away to Wall Street with a democratic congressional majority's blessing and HERE WE ARE!
Marc Faber Questions if Dow Could Hit 1,000
Faber also sympathizes with Prechter's view that there will one day be a complete credit collapse. Where he differs from Prechter is on that crucial factor, timing.
"It is likely that if the Dow where to fall by more than 20 percent from the present level there would be further massive fiscal and monetary stimulus packages – not just in the US but worldwide," Faber said.
"These economic policy measures would likely fail to boost economic activity in the US but could support asset markets," he added.
Faber's biggest problem with Prechter's theory is his view that surviving "dollars and dollar credits, representing the denominator of the DJIA, will rise in value, and the Dow – along with everything else used as money – will fall in dollar price."
"The question here is really, with the Dow below 1,000, what kind of dollars – and especially what kind of dollar credits – will survive," Faber said. "It is safe to assume that almost all banks in the world, and almost all governments, will be bust."
"I want my readers to think very carefully about the implications of a Dow below 1,000 (or even just below 5,000). Does anyone really think that the money printing presses won't run 24 hours a day? For sure I don't," he wrote in his August report.
And how do you trade the Dow at 1,000?
One suggestion from Faber is buying a self-sustainable farm in the middle of nowhere surrounded by high voltage fences and barbed wire and equipped with booby traps and an arsenal of machine guns, hand grenades and armed vehicles guarded by vicious Dobermans.