01-27-2012, 04:51 PM
The real point I'm getting at is I think we're going to see the economy take a trillion dollar dive as deficit spending gets reeled in. All these government jobs (troops, ships, planes, plus all the other branches of government) are going to crash, as they have been paid for with deficit spending.
So, far from thinking we're going to see a 20,000 Dow in 5 years, I think we're going to see a continual struggle as the economy tries to absorb these losses.
I mean, imagine if they really refused to raise the debt ceiling and the government literally had to yank $1.5 trillion out of the yearly budget overnight. $1.5 trillion/year vanishes from the economy? We'd implode. I don't think it's going to be THAT bad as they will try to spread the cuts out over a large number of years but I think it's going to be a drag on the economy for a long time.
So, far from thinking we're going to see a 20,000 Dow in 5 years, I think we're going to see a continual struggle as the economy tries to absorb these losses.
I mean, imagine if they really refused to raise the debt ceiling and the government literally had to yank $1.5 trillion out of the yearly budget overnight. $1.5 trillion/year vanishes from the economy? We'd implode. I don't think it's going to be THAT bad as they will try to spread the cuts out over a large number of years but I think it's going to be a drag on the economy for a long time.