Zuma Dogg "Economic Update" For Serious Investors Since ZD Is Better Than Greenspan At Predicting Economic Trends

If you are a serious investor in the stock market, or your future is tied to local or global economic factors...you should be paying much, much more attention to Big ZD, these days:

On May 05, 2007, Zuma Dogg predicted the sub-prime lending crisis would burst the housing bubble (three months before it happened); adding that it would trigger a recession within a year -- with the effects starting as soon as six months. Well if this week (November 5, 2007) signals the start of a recession to you...then ZD predicition of "starting in six months" was quite accurate. (To the day/week!)

AND NOW...FOR THE FIRST TIME SINCE THIS HISTORIC PREDICTIVE ARTICLE SIX MONTHS AGO...CHAIRMAN ZUMA DOGG COMMENTS ON THE ECONOMIC FUTURE FOR THE NEXT 18 MONTHS.

INVESTORS: CLICK READ MORE FOR THE INSIGHTFUL ANALYSIS.

Does Anyone Dispute A Recession, Followed By Inflation, Followed by A Depression Is On The Way?

Did you see that new Fed Chairman? What a bad PR turkey. He's worse than Wendy Greuel and Janice Hahn when it comes to putting a foot in the mouth during a speech.
When you say things like, "Not Alarming" and "Decline to comment as to whether a recession is on the way", that means it's time to be alarmed because a recession is on the way!!!

(You gotta admit...Zuma Dogg predicted that the sub-prime bubble burst would triggering the start of a recession, basically, to the day!)

EXCERPT:

May 05, 2007
ZUMA DOGG PUBLIC HEARING: IS THE WRITING IS ON THE WALL FOR A RECESSION STARTING IN SIX MONTHS TO A YEAR?

Oh no...Sen. Chuck Shumer/NY just told Zuma Dogg (indirectly) that we are gonna have a housing bubble-burst and recession starting in about a year. (With the effects starting as soon as six months.) SELL NOW!

They got these things called “sub-prime lending” (high risk, low interest loans). When you have a good economy, you can give some “riskier investments/clients” these low interest loans to jump-start their American dream of home ownership.

They only pay 1% or 2% the first three years, or so. Then, the rate jumps to the higher Federal rate.

When these people, coming off 3 year low interst loans, have to jump into a 6% or 7% or even 8 % rate all of the sudden, and they can’t keep up with the new, higher payments each month and then they default.

Well these days, with higher paying jobs being replaced with lower paying jobs; while housing costs, property taxes, and everything else -- people are gonna be defaulting on the loans, more and more. And the banks know that this is going to to become more of a problem, so they are going to stop approving these “low prime lending” rates.

Posted by Zuma Dogg @ 5/05/2007 10:32:00 AM

HERE'S WHAT MY BATCOMPUTER SAYS IS COMING NEXT:

First of all, keep in mind the U.S. is no longer the number one importer of goods from Japan. China is now the number one importer of Japanese goods.

ZD's Batcomputer says the weak dollar is the real reason gas prices are rising. The oil sheiks in the middle east don't like the fact they are stuck with a weak U.S. dollar, so they are raising prices to help make up the difference.

So it's no secret to predict low consumer confidence will trigger a recession based on sinking property values (owners feeling they are now worth much less); rising gas prices at the pump (with no end to the rise in sight); higher oil prices meaning it will cost more to heat your home (right as winter is hitting); and retailers are already hinting to an extremely "down" holiday spending season. (And it's probably gonna be worse than they realize/can actually admit.)

Personally, I feel the Fed would like to RAISE interest rates, to help make the rest of the world feel better about all those dollars they are holding and being paid with. (Like the oil producers in the middle east.) However, with the stock market concerns and low consumer confidence/financial problems with the U.S. economy...the Fed would not be able to be that much of a Grinch in the December holiday month.

Tuesday, November 6, 2007
Is U.S. About To Lose It's Foothold As #1 World Economic Power Over Sub-Prime Lending Crisis? (Will US Banks Be Forced To Merge With "World Bank"?)

To those of you checking in for the first time...my name is Zuma Dogg. And if you wonder why you should care about my opinion on the following story -- I posted a warning that the sub-prime lending bubble was about to burst, triggering a recession -- THREE MONTHS BEFORE IT HIT THE NEWS HEADLINES. Original Story (see date)

HERE'S AN UPDATE TO THE STORY POSTED SIX MONTHS AGO (FURTHER PREDICTION)

The US banks are going to have to surrender/merge to the International Monetary Fund (World Bank) next year, right after the elections.

Next year, one by one, the US banks are going to start to fall like dominoes. First Citibank, then Bank of America, and so on -- because of the sub-prime lending crisis.

Why? These banks' liabilities will have to be written-off and absorbed by a bigger bank. The World Bank is the only one big enough that I can think of.

First, there will he a big stock sell-off; then a merger as stockholders are forced to "give it up" to the I.M.F. (International Monetary Fund).

SUB PRIME DEFAULTS ARE NOT OVER, YET!

When property values "devaluate", more and more people will default (simply walk away) from their sub-prime loans. If you are paying back a loan for what was originally a $400,000 piece of property -- now only worth $200,000 -- some people will simply walk away from the loan and default.

THEN, the banks are stick with the properties people walk away from. And the bank's equity (property value) doesn't cover the liability of defaulted loan (See "negative amortization".)

In February/March of 2008, the Federal Bank will have to RAISE interest rates -- to help raise the value of the US dollar -- but it will be too late. (And if they CUT rates, it will only make it worse/devalue US dollar even further).

And here's why the Fed will have to RAISE rates, when consumer confindence and spending will be so low: THE OVERSEA BILLIONAIRES, LIKE THE OIL MOGULS IN THE MIDEAST DON'T LIKE SITTING ON THE US DOLLAR AS IT BECOMES LESS AND LESS VALUABLE. That will cause them to switch to Euros and other currencies.

So with low consumer confidence (due to subprime concerns); a terrible holiday retail season on the way, then raising the interest rate to help bring up the value of the dollar -- will cause consumers to cut-back even more (out of fear), causing a recession...followed by hyper-inflation, that will cause further consumer spending cut-backs, which will trigger a depression.

Then Greenspan will have to step in as Chairman of the I.M.F. (Oh, didn't you hear?)

If you project it all out...it appears as though for the first time ever, the US may lose it's number one ranking as the number one economic force in the world and may become beholden to the new global economic leaders.

Might not be very comfortable, economically, the next sixty to a hundred years on this side of the pond.

TIME FRAME: 18 months

BOTTOM LINE: The global marketplace is strong and there will continue to be big money to be made in the markets. You just have to make sure you accurately access the U.S. economy and it's position in the global marketplace. And make sure you are investing in things they need in China, India and Vietnam.

TO READ MORE ABOUT THE CURRENT STATE OF THE GLOBAL ECONOMY AND THE U.S. POSITION, GO TO WWW.ZUMATIMES.COM AND READ SOME OF THE RELATED ARTICLES POSTED ON THE SIDE COLUMNS.

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