And that “calamity,” according to libertarian and former presidential candidate Ron Paul, could very well lead to a 50% drop in the stock market. For the Dow DJIA, -0.33% that would mean about 12,500 or so . . .
“I think we have a greater distortion and a financial danger sitting out there bigger than ever before,” he told CNBC in an interview this week. “Everything is just very burdened with debt, and there’s no stopping it.”
Paul has been calling for a deep selloff for a while now. In fact, in August he made a similar call, saying stocks could get cut in half within a year. So far, not even close, as the Dow Jones Industrial Average and S&P 500 index SPX, -0.05% despite some big hits in February, have managed to move markedly higher from there. (Read more from “‘There’s No Stopping It,’ Warns Ron Paul: A ‘Calamity’ Could Cut This Market in Half” HERE)