<p>“There’s a distinct possibility the U.S. stock market could plunge as much as 6,000 points if the U.S. continues to rack up record amounts of debt, causing the dollar to lose its reserve currency status, says Daily Ticker favorite Howard Davidowitz. (See video below)
“The dollar has never been at greater risk,” he tells Henry in the accompanying clip. Davidowitz is confident that if Washington doesn’t cool its spending habits, interest rates will spike and inflation will soar. Look at the value of the dollar, and the crisis is already brewing, with foreigners and sovereign nations diversifying away from dollar-denominated assets, he says.”</p>
<p>I think his expertise is more in retail stocks. I suspect he is right long term if nothing is done to reign in spending. As far as Tilson is concerned, I seem to remember (at my age - my memory is going) that he was short nflx for the longest time before it went his way.</p>
<p>I believe soon or later after the euro is crushed and the bond vigilantes are done with eruope, our turn will be coming. Davidowitz is correct in what he’s saying about China diversifying away from the dollar.</p>
<p>China lies, anything coming from their government should be viewed with skepticism…have you ever googled China’s lost cities, or maybe ghost cities? Check it out and look at the infrastructure they built without a soul living in the cities…they fraudulently drove up the price of commoditities by building these empty places…</p>
<p>China lies, so do we. Having spent time there last year, its hubris on our part to think they’re lying about everything. Its a remarkable country with remarkable growth.</p>
<p>I have the feeling that qdogpa’s 12000 before 13800 call may be optimistic. I can see the dow perhaps getting to at least the December low of 11800.</p>
<p>[News</a> Headlines](<a href=“http://www.cnbc.com/id/47433863]News”>Even Pros Don't Like Stocks: Could That Be Bullish Sign?) provides an alternative view. I’m buying more protection. My aapl 5/19 puts look to expire itm. I think I can buy aapl at a better price in the future so I’m rolling these out another week. I’ve got some other puts that are like aapl that I’m going to have to do the same thing as I think this down draft has more to go. Of course, tomorrow I may completely change my mind.</p>
<p>Yes - you could be right. I’m counting on it because if it hits 500 or lower, there will be people who will make a ton of money in the stock because it will get back to 600 or higher before the end of the year.</p>
<p>Seem to be quite a few asking for reinstatement of Glass-Steagall in the comments about the last article.
I heartily agree.
When are we going to see a major push to have this happen?</p>