The Beginning Of The End
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Will The Wealthy Race To Dump Stocks And Other Financial Assets Before The Fiscal Cliff Kicks In?

The election results made it abundantly clear that taxes are going to be going up, and right now a lot of wealthy people all over America are trying to figure out how to best position themselves for the hit that is coming.  There are a whole host of tax cuts that are set to expire on December 31st, and many analysts are now speculating that we could see a race to dump stocks and other financial assets before 2013 in order to get better tax treatment on those sales.  Of course it is still possible that Congress may reach a bargain which would avoid these tax increases, but with each passing day that appears to be increasingly unlikely – especially regarding the tax increases on the wealthy.  Whatever you may believe about this politically, the truth is that we should all be able to agree that these looming tax increases provide an incentive for wealthy people to sell off financial assets now rather than later.  After all, there are very few people out there that would actually prefer to pay higher taxes on purpose.  If the race to dump financial assets becomes a landslide, could this push stocks down significantly late in the year?  Already there are all sorts of technical signs that indicate that stocks are ready for a “correction” at the very least.  For example, the S&P 500 has already closed below its 200 day moving average for several days in a row.  Could the “sell off” that has already begun become a race for the exits?

A lot of Americans have heard about the looming “fiscal cliff”, but most don’t really understand the specifics.

For investors, there are several key changes which will happen unless Congress does something by January 1st.

First of all, the tax rate on capital gains will go from 15 percent to 20 percent.  For those with high incomes, the rate will be even higher than that thanks to a tax increase that our politicians managed to sneak into Obamacare.  So, some wealthy individuals will see their capitals gains taxed at nearly 24 percent in 2013 unless something is done.

For dividends, the outlook is even more frightening.  The tax rate on dividends will increase from 15 percent right now to over 43 percent for the highest income earners.

We have already seen these tax increases play into business decisions that have been made in recent months.  For example, it is being reported that George Lucas potentially saved hundreds of millions of dollars in taxes by selling Star Wars to Disney this year rather than next year.

Anyone out there that wants to take advantage of the current tax rates on capital gains and dividend income better do so now, because these tax rates look like they are going to go away and they probably will not be back for a very, very long time.

According to CNBC, this makes the next couple of months an ideal time to dump stocks and other financial assets…

For many of the wealthy, 2012 is becoming a good year to sell.

They’re worried about the “fiscal cliff,” which is when tax cuts expire and spending cuts are set to go into effect at the end of the year.

Fearing an increase in capital gains and dividend taxes, many of the rich are unloading stocks, businesses and homes before the end of the year.

And the truth is that stocks simply did not have much higher that they could possibly go anyway.  Anyone that is trying to “get out while the getting is good” should take heed of what Marc Faber recently told CNBC

“The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”

In fact, Faber is absolutely convinced that a full-blown stock market crash is coming no matter what happens with the fiscal cliff…

“I think the whole global financial system will have to be reset and it won’t be reset by central bankers but by imploding markets — either the currency [markets, debt market or stock markets,” he said. “It will happen — it will happen one day and then we’ll be lucky if we still have 50 percent of the asset values that we have today.”

Politics and economics have always been deeply intertwined.  The results of the most recent election are going to have some very deep consequences.  Already we have seen a large number of businesses either announce layoffs or that hours for their workers will be cut back.  You can find a bunch of tweets from small business owners talking about how they won’t be hiring anyone or that they will be forced to reduce hours right here.  You can find a bunch of tweets from average citizens all over the country talking about how their hours are already being cut back right here.

With each passing day, our country is getting poorer, it is getting even deeper in debt and our economy is becoming even more unstable.  We are on a path that will only lead to total economic disaster, but the American people just voted for more of the same.

So now we will get to see how this all plays out.

Is there anyone out there that is still optimistic about what is coming next for the U.S. economy?

  • Rodster

    Michael is that your pet bear? :)

    • Michael

      Yes, and I have trained him to eat anyone that comes to my property uninvited. :)

      Michael

  • Rodster

    I agree with Faber. I think a complete economic reset is in order and must happen.

  • Kent

    Hey Michael,
    Are we to worry? Concern – Yes. Worry – No. I know that it seems contradictory, but if we recognize simply that God is in control we can still live. Remember people in the past had far less than we do and survived. I have asked for things which I needed and He has provided for me. The Bible says that the righteous will never go hungry. Proverbs 10:3. Trust and faith work hand in hand. I continue to be blessed even in these times. Give thanks.

    • Stephan Larose

      you are either blind or an idiot if you think the “righteous” won’t go hungry. They die of hunger in droves each and every day. Your own salvation lies in your abilities to think critically and build community, that alone can save you. Religion is just a bunch of myths that give incentive to irrational intolerance and prejudice, you would be wise to put away such childish notions and use the full potential of your brain to heal those both of and outside your “faith.” Best of luck.

    • http://CertaintyOfGodsLove.blogspot.com Paul

      Right on…God is in control :)

  • http://www.prepper-resources.com PJ Prepper

    Politicians are looking for any way possible to kick the can down the road reference the fiscal cliff. It’s rather funny because they set up all of these automatic triggers as incentive to actually get something down last year (super-committee), and now they are looking for another way to once again avoid paying the piper. They will try to minimize the “pain” to the economy but the options are getting smaller and smaller, and by that I mean options which allow them to put off making decisions which will piss off their constituents.

    The next few months should be very interesting, if we make it through the next year without some sort of major financial catastrophe I will be surprised. The piper has come calling and it’s time to pay up.

    PJ

  • tappedops

    Well, i can only speak for myself and a handfull of fellow “Red Pill”ers who have been shouting from the rooftops since late 2004/early2005 about all of this— ya you remember us, dont you…you called us kooks,fear mongers and so on…labeled us speercy tearus—ya you remember dont you…

    Well now the truth we spoke of is here…knocking at your door and its not so funny anymore is it?…yea… some of us even voted bronko…why?… because theres nothing more satisfying (and yes im speaking for us all)than watching this republic fall under full spectrom dominance all masterminded by a few dozen tank dorks using 3rd grade measures like devide and conquer and problem reaction solution all fueled by a blackmaled media that couldnt tell the truth if it was tatooed to their forheads…yaaa were excited about the future…cause we get to watch the sheeple boil in a pot they still cant jump out of… what a burn mehrka…lol

  • Traffix

    We started deleveraging a couple years ago. It took a couple years to make a dent. One more piece of commercial property and a little more stock and we are done paying rediculous taxes to pay for obama phones, food and free healthcare for everyone else. Oh and by the way not hiring anyone or buying any new equipment except what is absolutely necessary til we retire. Good luck to the true Americans that are left, get out of debt if at all possible.

  • Mustard Seeds

    Michael,

    I agree with this article. More of the same is on the way.

    I watched the History Channel’s Washington, D.C. gets NUKED! (DAY AFTER DISASTER) http://www.youtube.com/watch?v=WCme_K6MYLY

    History Channel should make another program….. D.C. nukes America!

  • TripSeven

    I can’t claim optimism. But I am hopeful. After the bottom falls out, and life stbilizes. Our plan is to immediately begin investing, since we are debt free, have cash, and time until I hope/expect to retire.

    The theory being that a rising tide floats all boats.

    Of coarse this is null and void should Jesus return and wifey and I are gone anyway.

  • Jason

    Only wealthy people have financial assets? Only wealthy people own stocks?

    With that kind of rhetoric you are part of the problem Michael because you are just as guilty as the Left of class warfare. Lots of people own stocks, NOT just the wealthy. Unless just like Obama, you classify everyone with any savings as “wealthy”.

    • steve

      Hate to tell you this, but 80% of the wealth in the the stock market is owned by the top 5% of Americans. A lot of Americans own stock, but what you own peanuts to what the top 5% control.

      “Since World War II, financial institutions have come to own a far greater proportion of stocks than private households have. Just after the war, individual citizens owned 90% of the stock market; by 2006, they owned only 30%.”

      source: http://www.gsb.stanford.edu/news/research/Strebulaev_who_owns_stock.html

    • Gay Veteran

      sorry Jason but the elites own the overwhelming majority of stocks

  • john jackson

    The stock market is a rigged game and a crash of paper stocks will be small potatoes compared to a global fiat currency collapse. The future will be a mess for some but an opportunity to prosper for those who get prepared now.

    http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=e6b01db8

  • McKinley Morganfield

    Buffet, Gates, Kerry, and other ultra-weathy people who spout off about how they need to be taxed at a higher rate are hypocrites. All they have to do is cut a check to Uncle Sam and of course they never do so. Its merely pandering. However, I think the equity markerts are going to tank no matter what the ‘wealthy’ do. Euro land will continue to dive ever deeper into recession and so will the USA and the entire global economy. 2013 will be a rocky road indeed. Prep, prep, prep.

  • SMASH THE CONTROL MACHINE

    YOU DONT BULLY ELIJAH!!! Now i know about bullying SEE WHAT HAPPENS!!These were not innocent little boys, naively teasing a prophet in an inappropriate fashion. Elisha was not needlessly harsh, nor was God. God’s judgment was poured out on those who rebelled against God, who disobeyed His Word, and who mocked His servants, the prophets. If there was one lesson that the people of Bethel learned that day, it was that they must reverence God and His spokesmen.Listen, my child, to the training of your father and do not forsake the teaching of your mother. 9 For they will be a garland of grace for your head and a pendant for your neck. 10 My child, if sinners entice you do not consent. 11 If they say, “Come with us; we are going to lie in wait for blood we are going to lie in hiding for an innocent person for no reason. 12 We will swallow them alive, like the grave, and whole, like those going down to the pit. 13 We will get all kinds of precious wealth, we will fill our houses with plunder. 14 Throw your lot in with us, and we will all have a common purse.” 15 My child, do not go in the way with them, withhold your foot from their path; 16 for their feet run to evil, and they hasten to shed blood; 17 for it is futile to spread a net in front of all the birds! 18 But these men lie in wait for their own blood, they lie in hiding for their own lives. 19 Thus is the end of all who unjustly gain profit; it takes away the life of those who get it. 20 Wisdom calls out in the street, she lifts up her voice in the plazas; 21 at the head of the noisy streets she calls, in the entrances of the gates in the city she makes her speech: 22 “How long will you simpletons love simple ways? How long will mockers delight in mockery, and fools hate knowledge? 23 If only you will respond to my rebuke, then I will pour out my spirit to you, and I will make my thoughts known to you. 4 Since I called but you refused me, I stretched out my hand but no one paid attention, 25 and you neglected all my advice and did not comply with my rebuke, 26 then I will laugh at your disaster, I will mock when what you dread comes, 27 when what you dread comes like a whirlwind, and your disaster comes like a storm, when distress and trouble come upon you. 28 Then they will call to me, but I will not answer; they will look to me, but they will not find me. 29 Because they hated knowledge and did not choose the fear of the LORD, 30 they did not comply with my advice, they spurned all my rebuke, 31 then they will eat from the fruit of their way and from their counsel they will be satisfied. 32 For the turning away of the simple will kill them, and the careless ease of fools will destroy them. 33 But the one who listens to me will live in security and be at ease from the dread of harm (Proverbs 1:8-33).DAMN SOUNDS LIKE YOU DONT F WITH GODS PROPHETS!!!!!

  • Mustard Seeds

    Our country is being run by a bunch if idiots.

    The whole screwed up Benghazi ordeal.

    The mess after Hurricane Sandy.

    The Four Star Circus of our top brass in the military.

    Our failing economy is only a symptom of the huge problem we have in our country’s leadership….or lack of it.

    I’m fed up with all of it.

  • SmallerGovNow

    Another home run Michael, thanks. Hang in there…

  • SmallerGovNow

    Hey Michael, curious, before when we used to post there was a copy of our message saying “awaiting moderation”. Now nothing. Hard to determine if the post “took” or not. Liked the previous workings of comments better…

    • Michael

      I apologize for the problems with the comments. They were not because of anything that I did.

      Because of technical issues that we have discovered, we are considering switching over to the Disqus commenting system.

      Does anyone have any feedback about whether that would be a good or a bad option?

      Michael

  • Larry

    I just received this email. I have no idea if it is true or not.

    Have u heard this??
    In order to petition the U.S. government for permission to secede a state needs at least 25,000 signatures. In just one week, Texas has gathered over 1 million signatures and hopes to have every citizen in the state sign the petition. Mississippi already has signatures from 96% of its citizens.

    So, New America will have 30 states and the Old America will have 20.

    Here is the full list of states that plan to secede from the union:

    Missouri
    Pennsylvania
    Arizona
    Oklahoma
    Arkansas
    South Carolina
    Georgia
    Missouri
    Tennessee
    New York
    Virginia
    South Carolina
    Indiana
    Mississippi
    Kentucky
    Florida
    North Carolina
    Alabama
    Texas

    • Mondobeyondo

      It’s true. That isn’t to say such movements will actually succeed though.

    • Alan

      Texas has 99000 last I heard this evening. When the collapse hits I will get a visa and move to the Republic of Texas.

    • Malcolm Reynolds

      Put your name on that list at your own risk. It’s like standing up and proclaiming, “I will not clap for you Joseph Stalin”

  • Sara

    Who cares about the capital gains going from 15% to 20%? I sure don’t. I rent because it’s all I can afford. I do not have a 401K. I live week to week. I have no financial security. The new normal for me is already commonplace. I am trying to de-clutter my life and my living space.

    I only buy what I need. Not the latest and greatest gizmos and gadgets. I am small and big businesses worst nightmare because my desire to buy and consume is basically nonexistent.

    I want to live within my means. Enjoy my family and my life and not spend it trying to get things.

    We only get a limited amount of time on this earth. And damn if the older you get the faster it goes by.

    Our childhood is spent longing to grow up and be adults so no one can tell us what to do.

    Our twenties are spent partying, drinking, worrying about looks, getting laid, etc. – At least for many.

    Our thirties just go by for many in a blur of trying to get the things we are supposed to have like a spouse, a house, a nice car, a career, money…all the things that make people think we are worth something. All the things we are supposed to have to symbolize that we are now adults.

    In my forties I now look back at my twenties and think…what a waste. You were an idiot. I have spent a lot of time regretting things I did, didn’t do and should have done.

    What will my fifties bring? I don’t know. Perhaps that is for the best.

    • stevef

      Good post…The Progressives are going to make your fifties unforgetable…and you’ll pray you don’t make it through your sixties.

    • cathy

      So true, sara.

    • RainyDay

      I can relate. I’m 30 and so wish I had not been such an idiot in my early twenties. Time does indeed fly by once you hit 30. I’ve felt the need to declutter and simplify big time!

  • Washington

    Published on Nov 13, 2012

    Ron Paul: Secession Is an American Principle

    http://www.youtube.com/watch?v=nhQ31b_dbnM&list=HL1352851816&feature=mh_lolz

  • Paranoid

    Riddle me this Batman. If the rich are dumping so much stock and assets; what’s the money going into? And don’t tell me: Gold, Silver or farmland. Total value of all the gold mined each your isn’t 200 Billion, silver far less. farmland sold each year is trivial. It’s the little guy getting out of the market. At less than 1% interest on their money they need the cash to eat

  • http://planorperish.com Main Street Economist

    Is there anyone out there that is still optimistic about what is coming next for the U.S. economy?

    Michael

    Goldman Sachs, the most dominant investment bank in the world, is now predicting that America will outpace Saudi Arabia in oil production before the end of this decade. Energy exports are expected to support the US economy and the US dollar for many decades into the future.

    Many wealthy investors are currently buying selective energy stocks and real estate.

    Wall Street is also very optimistic about new high tech products and processes.

    When there is blood in the streets, stocks pass from weak hands to strong hands.

    Wealthy investors don’t need to sell their stocks (now or later) – they don’t need the money.

    You need to sell your stocks – Wall Street needs more commissions and larger year end bonuses.

    Throw your stocks out the window – Wealthy investors are waiting to buy them from you at a discount.

    Listening to CNBC is a hazard to your wealth.

    PS: Watch the up trend line of the S&P 500 that started in march of 2009. If this line is broken to the down side, some wealthy investors may change their thinking.

    http://blog.kimblechartingsolutions.com/

    • das

      Drill Drill Drrill! America IS sitting on the worlds greatest oil and nateral gas supply. This has been know for years. Cheap oil would kick start our econmey. Bring thousands of jobs to hard working americans. Boost oil, drilling, and energy stocks. Oh but wait, Obama just killed 1,000,000 acres of federal land to drill on.

  • George Washington

    there’s nothing a world war can’t fix we’ll all be in a post war boom in no time

  • Gary2

    President Barack Obama will enter high-stakes budget negotiations firmly committed to seeing the tax rates for high-income earners rise to pre-George W. Bush levels, he assured a gathering of progressive and labor leaders on Tuesday.

    “I am not going to budge,” he told the group, according to an attendee who relayed material from the meeting on condition of anonymity. “I said in 2010 that I’m going to do this once, and I meant it.”

    TAX THE GD RICH AND SPREAD THE WEALTH–GO MR. PRESIDENT

    • bobb

      god bless gary2
      ur my hero

    • http://www.survivalschool.us Jay

      You bore me. Sometimes I think you are just a paid agitator because your arguments are weak and designed to be the most controversial. Meh. Read on, nothing to see here, nothing added to the discussion.

    • SmallerGovNow

      Define “rich” Gary. Who gets to define this? That is the problem. A person making 12,000 a year might think someone making 30,000 per year is rich. So let’s tax that person at 50% and they will still be making 3,000 more per year than the one making 12,000. No Gary, we have a spending problem. Go look at the President’s 2012 budget and you will see that the numbers don’t add up. Oh sorry, forgot you cannot do the math…

  • Graham

    … what is coming next for the U.S. economy?

    Whats coming next for various States? Perhaps your next story will cover the following. A rather mind blowing story. The link for Texas is just one of many who are apparently now across the 25,000 threshold, as required by the White House rules.

    Nearly half of the US threatens to secede:-
    http://rt.com/usa/news/us-secede-petition-government-540/

    White House Petition (Texas; 90,509… and climbing)
    https://petitions.whitehouse.gov/petition/peacefully-grant-state-texas-withdraw-united-states-america-and-create-its-own-new-government/BmdWCP8B

  • Gary2

    So, some wealthy individuals will see their capitals gains taxed at nearly 24 percent in 2013 unless something is done.

    My heart is just breaking. They need to be taxed as the regular income they are.

    Michael–that statement from your post embodies all that is wrong with conservatives. This is why conservatism will fade into nothing but a bad memory. Most of the population right and left say the taxes need to be raised on the rich. Obama stands firm–the rich will be taxed.

    • bobbobbob

      god bless gary2

    • Rodster

      One thing I learned in life and that is, it’s losers who take glee in the misfortunes of someone successful. ;)

      Remember what goes around comes around because this is all heading for a total collapse. It can’t come soon enough so losers like you are in the same position as those who were left relying on the Gubmint after Hurricane Sandy and the Gubmint gave those in need the middle finger when they needed help.

    • phelps

      They won’t be taxed at all. They didn’t get rich by being dumb. They will just move their dollars to a more favorable market, or country. The Asian countries are much more friendly to their businesses and wealth so they will seek shelter in Asian markets.

      If you really want the rich to pay more in taxes then have a flat tax of 15%. They won’t mind paying it and the gov will get at least some, and possibly more revenue. This new way will ensure the gov gets no, or less revenue from the wealthy.

      Good day.

  • Jacob W.

    Is 2013 when the Fed releases the money they created from nothing?

  • Hognutz

    Is something wrong with comments?

  • phelps

    The confidence level in the economy is very low. The mega rich will escape the tax consequences in some legal way. Those that can’t move their businesses or dollars will either shut-down, or make their employees, independent contractors. The IC solution was already being implemented by several companies late last year in anticipation that Obamacare would not be overturned by the SC. More companies will seek this solution as it will save their workforce while allowing them to cut benefits in order to remain solvent and in business.

    It is going to be a bumpy ride.

    Good day.

  • Chris Hamel

    For the small (non-institutional) investor, it may be wise to dump a portion of your assets in the market and keep them liquid. The down sides are that you do have to pay taxes on any gains, and there may be some opportunity lost if the market goes up… but that lost opportunity is probably modest, and the hedge could pay off big.

    These are frightening times.

  • Robert (qslv)

    I am protected from the coming dividend and capital gains rate increases coming if Obama’s new taxes are implemented because my portfolio is in IRA accounts. However I expect the markets to crash in the near future. It may have already begun. There has also been noise from the Democratic Senate about implementing an Argentine style confiscation of pensions, IRA’s and 401-k’s to fund the ADC and other entitlement parts of social security.

    P.S. to Michael, The new posting method at the American Dream will not work with My IE8 browser, which I cannot upgrade for security reasons.

    • Michael

      Robert:

      Thanks for that feedback. I am trying it on those sites before implementing it here.

      Can you not see the comments on those sites at all, or can you just not comment?

      Is anyone with Internet Explorer having any kinds of problems on either of my sites? I once was a steadfast Internet Explorer user, but after way too many frustrating moments I switched to Firefox and never looked back. Internet Explorer just seems to be so buggy these days. I think that Firefox and Google Chrome and much more stable.

      But I am certainly not an expert on these things.

      What does everyone else think?

      Michael

    • http://www.planorperish.com Main Street Economist

      Ref. The Anerican Dream

      (1) My IE9 browser does not work either.

      (2) Chrome will work after you set up an account with DISQUS

      https://disqus.com/next/login/

      (3) Your user name should match your Gravatar name if you have a Gravatar account.

  • Joseph

    Michael,

    I am truly disgusted by the American people for voting for these tyrants and dictators who think that slapping more debt and more regulations will let us spend to prosperity. “Helicopter Ben to the rescue” syndrome is what they are suffering from. I say to that, “total and utter nonsense” every time socialism is teamed together with central economic planning and central banking, it is a 100% guarantee for ruin.

    God help us all, if there is a United States in 2016…

    RIP USA, formerly Land of the Free, Home of the Brave 07/04/1776 – 12/31/2012 replaced with
    The New USA, Land of the Governed, Home of Tyrants 01/01/2013 – ???

    • Mondobeyondo

      Don’t blame me, I voted for Romney.
      Oh well.

  • Kathy Smith

    OH Micheal love the bear picture what a perfect look for your last question. We who have been paying attention for awhile now know where this is headed. As a nation of freedoms we will no longer exist. God help us all. Thank you for keeping us informed.

  • Michael

    From one Michael to another, I appreciate your perspective!

    The U.S. Economy must reset. We are on an unsustainable path. We are like pigs at the trough. We suck up what the government feeds us and keep asking for more. Our moral bank account is now negative, so we have no moral capital to help us out of this mess.

    http://www.321gold.com/editorials/schiff/schiff111312.html

  • Jeff

    As long as Europe is in its current state, which it will be for perhaps a another decade, the US will continue to benefit from it. “Fiscal Cliff” is just Y2K lite. There will be a general agreement, and things will continue as they are. That is not to say this country is not in terminal decline; it is. But the idea that Obama/Romney/whoever has the capacity to put the brakes on this runaway train is simply ignorance of the underlying systemic issues that continue unabated.

  • Captain Obvious

    Do bears defecate in the woods? Demonize successful people and rich people and they will take their cash and ingenuity to a place that will appreciate them. We’re still in this together comrades, now give me some of yours brother.

  • Anon

    As usual, the wealthy are threatening to take their ball and go home when the game is no longer drastically rigged in their favor.

    We need to stop being a wall street based economy and shift back into a main street based one, tax the hell out of the market so investors stop seeing it as a great alternative to investing in the creation of actual jobs. Right now there is no contest, the wealthy see it as either investing in stocks at a extremely low tax rate and make millions with very little risk, or take a huge risk and start a company that creates jobs. You’d have to be a fool to invest your earnings in creating jobs when the comparably tax free stock market is available.

    • phelps

      What fool would just sit back and watch their wealth disappear when they can do something to stop it? No one.

      Without wealthy investors many of the companies in business today would not be here. I work for one now. This co. sold stock so that the bus. would grow; people bought stock and it is a worldwide co. employing thousands of people. Thanks to Obamacare many of us will now have our hours reduced from 40 to 25.

      Obama, the Dems and Repubs are only punishing those who get their wealth through private companies. They will not repair the rigged game for those making fortunes off the public sector, or via their insider knowledge they gain from gov employment. Both Dems and Repubs make fortunes buying stock that they know will go up when certain pieces of legislation is signed into law. They also know they can never lose money when their bets go bad because they can simply get bailed out by congress since they have all the tools at their disposal to do so.

      Folks, we getting tag teamed from the left and the right. The road to hell is paved with bad intentions masked in the veil of the public good.

      Good day.

  • http://endzone2.weebly.com Craig

    I want to say again, you have a great source for pictures.

  • lena

    people have pulling money out of the market the whole year at record rates, i expect that to increase.

    if the FED wasnt putting 40 billion in regularly with QE 3 and still didn’t have operation twist going until the end of this year; i think the market would be down 25% easily from where it is now.

    there is no reason for the market to be anywhere near where it is except federal bank manipulation.

    the sad thing is the same US FED did open market purchases during the great depression and it didn’t work then either, the stock market still had a second crash after that was started and supposedly Bernancke is a great depression expert.
    I do think with what I now know, I could do a better job as FED chair than Bernanke if the FED really wants the economy to recover; and I am serious. 20 years from now, everything he has done is going to be proven to have made things worse.

  • Ski

    So it is written….So it shall be

  • http://baid.us/hk3V Andreas

    Involving foreclosures….these passed legislation in my village. If your grass is over twelve inches large, they alright you. I suppose in the case of foreclosed, they just put a lein on the property or home.

  • erheault

    The warning signs of this train wreck have been visible for several years and the sheeple have ignored them, Now the finincial crash is becoming world wide and most of the sheeple keep grazing on the governments Kool Aide and buying Chinese junk and ignoring the massive loss of income and homes world wide. Enjoy the ride it will be Classic.

  • http://www.magnifiedview.com Yoda

    Excellent warning E.C
    Are we Venezuela yet?
    Our closet Muslim communist-leaning lleader has promised to continue the economic graveyard spiral.
    Be aware and prepare!
    Right on Economic Collapse – WRITE ON!
    “Yoda’s Little Known Tactics To Avoid Being A Target.”
    http://www.magnifiedview.com

  • patriot alice

    Past behavior is the best barometer of future behavior…They will continue to kick the can down the road, until there is no more road….Greece here we come..Since we can print our own currency, the road won’t end for many decades from now…

  • bobbobbob

    if u r sure the us stocks r going down short them.
    ps i like who mro has had in the white house—-the head of the unions!!
    we r off to a good start!!!
    i personally donated 2450 to mro –we one
    u lost—maybe we will get your bloggers dental insurance next—so you dont die of septis!!!!!!!!

  • bobb

    go gary2

  • Washington

    SCHOOL SUCKS: The American Way

    Uploaded on Feb 17, 2012

    Don’t let the title fool you. This video is actually about how government-run schooling contributed to the rise of socialism, imperialism and eventually fascism in Germany between the 1890s and 1940s.

    http://www.youtube.com/watch?v=okPnDZ1Txlo&feature=player_embedded

  • markthetruth

    test

    my last 2 haven’t shown up.

    the end.

  • Virginia

    That bear looks to be saying, “one move and I am all over you so make my day and let’s tumble.” President Obama will not budge. The tax cuts will expire and wealthy will continue to be wealthy (paying a little more tax) and the rest of us will continue as is, lumbering along going nowhere fast. Don’t feel good about the markets, very bearish I am afraid. Overall, things will get better as time goes on, probably 2014, we will see a little light but it will be very slow.

  • Denier

    Nope. Democrats/Liberals have never understood the concept of unintended consequences.

  • nowwthen

    For what it’s worth everyone will be dumping stocks in appprehension of possibly going over the fiscal cliff. Stocks paying higher dividends might take a bigger hit since taxes on dividends could go much higher. So, if you hold stocks in a tax deferred 401k or traditional IRA where your dividends can accumulate or be taxed as ordinary income upon withdrawal it might be wise to buy some of those stocks after they fall if the Bush “temporary” tax cuts are allowed to expire. Healthy companies like AT&T, Verizon and many utilities will be able to maintain their dividends. I they fall to March 2009 levels you might be able to get in at a price that puts those dividends above 8%.

  • Seratone

    Yup, we’re all in big big trouble!

    Check out this opinion piece on the fiscal cliff from the Washington Times.

    http://www.washingtontimes.com/news/2012/nov/13/election-is-over-but-fiscal-cliff-still-looms/

    “To avert calamity, President Obama and House Republicans likely will compromise to raise taxes on high-income Americans by $100 billion to $150 billion, curb spending an equal amount and renew the Bush tax cuts for families earning less than $250,000.

    This will hardly be enough to right the nation’s shaky finances, yet slicing the budget deficit by as little as $200 billion or $300 billion still would throw the economy, barely growing at 2 percent, into a tailspin.”

    So basically ANY cuts in spending are going to be bad news for all of us, at least in the short to medium term.

  • jsmith

    Michael, in reading your articles it is apparent that something big is going to happen, specially when you back it up with plenty of examples.
    Marc Faber, Celente, and yourself have been warning us for sometime now, and I have taken the cue to buy the metals, something that the majority of people dismiss and are completely ignorant of. They are just not interested in gold or silver as protection.
    Any truth to the story of a German waiter in a hotel being paid with a gold coin by an American as a tip, and when hyperinflation hit, that same waiter was able to buy the hotel?

  • Washington

    Turn off your power for a week… what would you learn? NOVEMBER 11, 2012

    http://www.off-grid.net/2012/11/11/turn-off-your-power-for-a-week-what-would-you-learn/

  • DavidH

    Michael, thanks for the great article as always! Here is what gets me the most. Almost everyone I know can either tell you about anything sports related or any program on Tv like “Dancing with the stars”, “Survivor”, ” or “X factor”. These same people don’t realize that all Americans will be paying more taxes in some form come January. Most people I talk to tell me they haven’t heard anything in the media about this and can’t believe I know what I am talking about. I do hear alot of people telling me the tax increases will only affect the rich over $250k per year. WOW…these people are in for a great big surprize!

  • Glench

    The logic of the tax increase targeting the top 2 % of the population escapes me… these are people that own businesses employing others, the ones that the government already collects over 40 % of the entire tax revenue from… The expiration of the tax cuts will add amount to another 30 to 40 billion in tax revenue… a drop in the federal bucket…

    The other day I talked with a cousin of my mom’s (the dudes in his 80’s and owns a large farm that his sons and grandkids run)… He had to work at everything in his life, and is what one would consider very ‘frugal’… ie… his golf bag was made back in the 60’s… anyways… he wondered why he should even collect the Canada Pension Plan and old age security checks… he does not need them…

    The Obama regime, should simply ASK people that are well off to consider helping out the U.S. more than they already have about whether they really need old age security etc… instead of playing the role as a dictator and forcing tax hikes on them…

    I see nothing wrong with chopping 550 billion in government spending next year… everyone knows government spending has to be cut back… or we will face real problems over the next few years…

  • http://www.TrumpetCallofGodonline.com Thomas Hildebrand

    Thus says The Lord God: I will defend My people, Israel, and take vengeance upon My enemies. For My own name’s sake will I do it, and for My servant David’s sake shall it be done… And thereafter shall My witnesses be sent into battle…

    For behold, I have only just begun to speak! Says The Lord of Hosts. I have only just begun to reveal the power of The Lord! I have only just begun to reveal My anger! Yet if it were not for the sake of a remnant among those yet to be called, and for the sake of My name in Israel, that it may be glorified, I would have destroyed the enemies of Israel already, blotting them from the face of the whole earth. Thus I have withheld My hand, and have not yet taken vengeance upon My enemies. Yet I shall not withhold My hand for much longer, neither shall My wrath tarry.
    For I shall surely stretch out My hand and strike the nations, and the slaughter shall be very great! Many ten thousands shall fall in one day!… A great destruction, even of all their devices! For The Lord God shall come out against them mightily!… Very dreadful in battle! With a terrible destruction shall I be glorified in My strength, and the slaughter shall be great!… A slaughter which has never been seen in Israel, slaughter of such a kind, causing ALL in the earth to tremble!
    And those who hear of it, even their ears will tingle, with their hearts skipping a beat within their chests. Then they will know, I AM THE LORD, when I have magnified Myself in the land of Israel, when I have shaken the mountains of Israel, with My presence!… Yea, in the hearts of many shall My name be hallowed, on that day.

    THE LORD GOD of Heaven and earth is speaking to THIS modern generation…
    THE TIME HAS COME!… History has an end…

    http://www.TrumpetCallofGodOnline.com

  • http://thebasicsofliving.com/ Robert McCorkle

    Excellent article. I hate to say it but those with a high level of financial intelligence are becoming wealthy right now. Gold and silver are the right asset class to be in along with shorting stocks, buying puts, and other option strategies that work with time decay instead of the way the market moves. Now is a great time time to start a home based business as well. We will get through this mess and move into a bright future. According to the “Four Turnings” by William Strauss and Neil Howe we are in the winter cycle of the generational cycle. Its an excellent book.

    http://thebasicsofliving.com/understanding-cycles/

  • http://yahoo.com richard swank

    WHERE IS MY POST???????????

    • Michael

      Hi Richard…. I hope your post was published. I have been going through so much spam, and it might have been deleted. If so, I am very sorry. Michael will be installing a new comment system on this website that will allow your comments to appear right away. Thank you so much* -Temporary moderator

  • Old Man

    The fiscal cliff is already in. Actually, burnt in. It was burnt in during the decade since 2000, when spending went out of control, taxation went into under-drive, and borrowings went into FICO Score insanity.

    “Debt and deficits don’t matter.”
    – Dick Cheney

    Well, they don’t matter for him! But matters for the country, where it got to the point even the infinite fiat money power of the Fed has hit the ceiling.

    The fiscal cliff – you asked for it. You will get it. Tell me if it matters in 2015.

  • Washington76

    “There can be no greater error than to expect, or calculate, upon real favors from nation to nation. It is an illusion which experience must cure, which a just pride ought to discard.”
    George Washington

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