The stock market is on the precipice of losing at least 40% of its value, according to Todd Schoenberger, managing principal of money manager BlackBay Group. “You have Europe, where there’s a deep, deep recession,” he says. And Europe is a major customer of China, which already is seeing an economic slowdown. China’s GDP growth shrank to 8.1 percent in the first quarter from 8.9 percent in last year’s final quarter. In the United States, “we are running into a brick wall,” Schoenberger says. “The fiscal cliff means higher taxes. We’re not going to have anyone to bail us out, and we’re talking about austerity.”
In addition, earnings growth has decelerated to 3 percent year-on-year from 12 percent a year ago, he says. “Where are earnings coming from?” Finally, he predicts the Federal Reserve won’t ease again before the election. “This second half is going to be absolute doom and gloom.”
COMMENTS:
There are those who are not so dire in their predictions,
but they are in the minority; it seems
that only Obama employees are remaining optimistic. One thing is certain: it’s going to get much,
much worse before it gets better, and we need someone in charge who is capable
of helping us weather the storm.
TODAY’S QUERIES & ANSWERS:
Q. There was a lot of flack about religious organizations reacting
to Obama’s sneaky attack on them when he demanded through ObamaCare that they
make contraceptives available to their hospital and clinic employees. But, that’s
the last I’ve heard about it. Any
news? (Jasper ~ Sedona, AZ)
A. 47 religious organizations have filed suit against Obama
to demand he withdraw the regulation. So
far, Obama is not budging, asserting that the government does, in fact, have
the right to tell religions and you how to practice religious beliefs.
Q. I have a deep feeling against gay marriage, but my best
friend’s daughter is getting married in a gay wedding and I’ve been invited to
attend. What do I do? (Janice ~ Boston, MA)
A. If she is a true and close friend, you have to set aside your
feelings for a brief moment. Skip the
wedding and attend the reception. Take a
nice gift, make sure you congratulate your friend and leave early due to some
conflicting engagement. And, one of these days you need to express your feelings to your "true friend" and reach some sort of accord.
Q. We keep focusing in Iran’s nuclear weapons program. What’s going on with North Korea? (Zula ~ Las Vegas, NV)
A. The late dictator, Kim Jong-Il, ordered massive amounts
of uranium before his death and directed that the nuclear program proceed at
breakneck speed. His son, Kim Jong-Un,
has picked up the ball and is running with it.
TODAY’S QUOTE:
“I'm
always told that what I say is controversial. Why is it controversial? Because
I speak from a tradition that has now fallen out of favor with the dominant
media in this country. And so when I say things like marriage should be between
one man and one woman, I'm called a bigot.” ~ Rick
Santorum
TODAY’S VIDEO:
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