Economic Cyanide

The scary economic times we are experiencing now has led many so called experts to predict we are in the throws a new Great Depression. I don't put much weight on these comments since about 3 economists saw the housing crisis coming, and heck, I have no idea what I am having for dinner tomorrow.

One interesting fellow in this regard is Hary Dent, investment strategist and economic futurist and author of The Roaring 2000's. Dent's stategies are quite interesting and are based primarily on demographics, where for instance, he contends that this post baby boomer generation is the first not to expand in population and thus, as spending has peaked, economic growth will contract.

One could contend that the large number of immigrants that have been pouring into this country over the last several years would be helpful in this regard. But as one of my well respected cohorts, The Wizard, accurately points out, the massive influx of low skilled, uneducated and very poorly equipped immigrants are a tremendous inventory overhang on our system, which is overwhelming our resources and is no longer manageable.

In his book The Roaring 2000's Investor Dent predicted inevitable deflation in 2009 immediately followed by a depressionary cycle. Dent recently visited with Neil Cavuto on the Fox Business Channel:



Dent is now pushing his new book The Great Depression Ahead, and projects the DOW to fall to around 3800. In an ordinary market, I would unload the truck buying the DOW at 3800.

But wait, damn it, we seem to have upcoming economic policies that will not be investor friendly, and these policies will no doubt heighten risk and limit investment.

In a special column for The Glen Beck Program titled The Looters Are Coming, Wall Street Journal senior economics writer Stephen Moore outlines the economic cyanide for us. Once again, Moore references Ayn Rand and her classic novel Atlas Shrugged. I am glad Ronald Reagan is not around to see this. Now, step away from the window ledge!