2006 : Economic & Political Predictions

The basis of the economic predictions is the waning of the massive fiscal and monetary stimulus brought about by 9/11 and the resulting Middle East War.

a) The stock market will decline 20-25%.
b) GM will declare bankruptcy.
c) Job growth will fall below 2005 levels.
d) Home prices on average will fall 7-10%.
e) The government deficit will be higher than expected and the dollar will fall. But counterintuitively, deflation will be a bigger threat than inflation. Cash will be king.

The political predictions will reflect the backlash of voters towards the gloomy economic results.

a) Cheney will leave office. Health will be the reasons given. Rice will be appointed Vice-President.
b)Rove will be indicted.
c) Bush will be impeached only if the House changes hands in 2006.
d) Hillary Clinton's presidential momentum will fizzle further.
e) John McCain will emerge as the Republicans Presidential favorite.
f) Economic stagnation will lead to a drift to isolationist economic policies.
g) We will get a pretty tough immigration reform.
h) AIPAC/Israel will be caught in wide ranging and long term espionage activities.
i) Paul " The Merchant of Menace" Wolfowitz will not convert to Christianity.

Develop and trust your instincts and live a healthy life.