After a short rally in the stock markets, lasting somewhere on the order of 1 to 4 months after Obama is inaugurated as President, people will realize that Obama's stimulus plan isn't going to work.
Specifically, it will become obvious that we're in a Great Depression, and that nothing that Bushco or Obamaco did can get us out of it (it may take a while longer for people to realize that what both administrations did actually made the financial crisis much worse).
At that point, the stock market will crash like a waterfall. Mish thinks the crash will leave the S&P at 600. Robert McHugh thinks the crash will drive the S&P to 500 or lower (in McHugh's worst-case scenario, the S&P could end up at 50).
At around the time of the crash, the bubble in long-term treasuries will burst. Retirees and other people who have socked away their money in treasuries will get hit hard.
The government itself will start massively buying its own long-term treasuries.
In this age of cheap computers, real criminals and terrorists will have a second computer, not connected to the net, which contains their private data. Jump disks and digital media grow steadily smaller with higher capacity, DVD-roms are flat enough to hide in book covers and the sides of luggage.
This hacking into private PCs is not about stopping crime but keeping people scared into not communicating their concerns with others; to keep the people isolated and emotionally dependent on the government.