What is The Sideways Economy? Well, it means there is no huge
driver for growth. Real estate will stay sluggish, thanks to a backlog
of unsold homes and homes entering the foreclosure pipeline.
Banks can't lend because their money is tied up in bad mortgages
and foreclosed homes. Without bank lending, business can't grow.
But, if you know what to expect, you can prosper. Even though the
economy will be sluggish, it will grow. Just not like it did before.
You see, the economy before last year's crash was built on two
unsustainable driving forces: debt and derivatives. Debt said "Eat,
drink and be merry...you don't have to pay until tomorrow."
Derivatives said "Trust me. Your investment will increase in value."
The derivative bubble burst last year. All we are left with is the debt:
$12 trillion in Federal debt and $2.5 trillion in personal debt. .
This debt means we can't finance our way back into growth. Don't
worry, we won't fall into an abyss, either. Expect an extended period
of fits and starts that will lead ...well, it won't lead anywhere. As
investors look for places to put their money, volatility will increase.
Like horses on a carousel, parts of the economy will go up and
down, but end up nowhere. Gold will skyrocket, then plummet. The
Dow will rise to near 10,000, then fall...maybe as far as 6,500 again.
Then careen back up again. Oil prices will spurt up, like a newly
discovered wildcatter's find, then drop back to earth. Like a buckin'
bronco, there will be a lot of movement, but very little direction.
How do you maintain your balance? Read The Sideways Economy
and find out how you can prosper.
driver for growth. Real estate will stay sluggish, thanks to a backlog
of unsold homes and homes entering the foreclosure pipeline.
Banks can't lend because their money is tied up in bad mortgages
and foreclosed homes. Without bank lending, business can't grow.
But, if you know what to expect, you can prosper. Even though the
economy will be sluggish, it will grow. Just not like it did before.
You see, the economy before last year's crash was built on two
unsustainable driving forces: debt and derivatives. Debt said "Eat,
drink and be merry...you don't have to pay until tomorrow."
Derivatives said "Trust me. Your investment will increase in value."
The derivative bubble burst last year. All we are left with is the debt:
$12 trillion in Federal debt and $2.5 trillion in personal debt. .
This debt means we can't finance our way back into growth. Don't
worry, we won't fall into an abyss, either. Expect an extended period
of fits and starts that will lead ...well, it won't lead anywhere. As
investors look for places to put their money, volatility will increase.
Like horses on a carousel, parts of the economy will go up and
down, but end up nowhere. Gold will skyrocket, then plummet. The
Dow will rise to near 10,000, then fall...maybe as far as 6,500 again.
Then careen back up again. Oil prices will spurt up, like a newly
discovered wildcatter's find, then drop back to earth. Like a buckin'
bronco, there will be a lot of movement, but very little direction.
How do you maintain your balance? Read The Sideways Economy
and find out how you can prosper.
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| Kimberly Amadeo |
The Sideways Economy: How You Can Prosper
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