what will the market bottom out at?

[seanx]

predictions? I'm saying low 8-9,000.......but if it does got that low there might be a collapse..........(so far all indicators I've read have been correct in their predictions.....how well have your financial advisors been doing?)

[seanx]

........good predicitions, people..........

Let Market Crash Now Or Face Financial Train Wreck
Experts encourage facing reality that stocks are overvalued due to weak dollar, but Fed set to continue with dangerous sweeping rate cuts

January 23, 2008
Paul Watson

The Fed's continued obsession with slashing interest rates and printing money in order to maintain the facade of the grossly overvalued stock market while the dollar collapses is precipitating a financial holocaust. Yuppies need to cut their losses and accept a soft crash now or place the very pillars of the American economy in danger.

Sentiment is widespread that yesterday's shock 75 basis points cut in the federal funds rate served only to instill more panic in an already fragile environment, doing more harm that the extra liquidity in the financial system can compensate for.

Some experts are actively encouraging a stock market crash now so as to allow the system to bottom out, rather than sliding down the same path towards fiscal armageddon in two or three years.

Clem Chambers, CEO of ADVFN, Europe's number one stocks and shares website, writes in Forbes , "In many ways, the best thing that could happen now would be a quick crash. A lot of professionals are praying for a so called "puke" because that would set a bottom for a recovery and signal that the worst is over. A short, sharp shock would be good for everyone. Recovery is better than sickening."

Chambers says the outlook is bleak through to the end of 2010 and that without this "puke" the second leg of the credit crunch could lead to a "financial train wreck on a scale not seen by the current generations".

Facing the reality of the fact that the stock market is grossly overvalued due to the weakness of the dollar and is due a severe correction seems impossible to accept for the yuppies who have buried their heads in the sand and consumed establishment propaganda that the economy was "in good shape" for the past three years.

This is why the Fed's policy of continually lowering interest rates to artificially prop up the stock market by devaluing the dollar looks set to continue, with a 2.5 per cent level expected to be in place by spring.

"We now expect the Fed to cut another cumulative 100 basis points off interest rates. The next instalment will probably come at the formal meeting on 30 January ? another 25 or 50 basis points. We would expect to hit 2.5 per cent by the April meeting," predicts Nigel Gault , chief US economist at forecasting body Global Insight.

But by continually slashing rates in a vain attempt to rescue the illusory strength of the stock market, the Fed will sacrifice the dollar, which will in turn dissuade foreign investors from buying U.S. stocks anyway.

As writer Dave Lindorff explains in his latest column , "The Fed is in a trap. It cannot cut interest rates much more without causing a collapse in the dollar, which, because of the huge US trade imbalance, and all those consumer goods and raw materials--especially oil--that are imported--would lead to serious and politically dangerous inflation. And there is another constraint: with the current rate cut, the US now has the third lowest interest rates in the world. If the Fed makes another cut, as it has hinted it might in a week or so, only Japan would have a lower interest rate environment than the US. That makes the dollar a very undesirable currency for foreigner investors, which means they won't want to hold dollars, and they won't want to hold US stocks. Yet if the Fed doesn't cut interest rates even further, the stock market will continue to plunge, which again discourages foreign investors from pouring their money into the U.S., which in turn puts downward pressure on the dollar."

"The Bush chickens--endless deficits as far as the eye can see, and a $2-trillion military debacle that has no end in sight and that is sucking money out of the country like a giant industrial vacuum cleaner--are coming home to roost," he concludes.

If the Fed really were interested in preventing long-term fiscal armageddon and hyper-inflation, the yuppies would be forced to cut their losses, eat humble pie and see their stocks reduced to their true value - the dollar would survive and the fundamental economic pillars would remain in place for a genuine recovery after 2010.

This would be the best medicine for the vast majority of hard working, tax-paying Americans, but as we are painfully aware - Bernanke, Paulson and the like only have the interests of their bosses at heart and for the elite, economic chaos and a possible depression, as occurred in 1929, only benefits their long-term plan to bankrupt and pillage America to fulfil their own crooked agenda.