Prechter predicts "Great Deflation" and "Great Depression"

[uFlubber]

I'm still waiting Bob. Bob's a perennial bear. I remember back in the '80s he was saying the same thing. Market was over valued when it was at Dow 1500. haha

[panzerkilla]

Deflation? I wish. It would take a productive nation to achieve that. Instead we just print and monetize. This guy is a joke.

[rlichota1]

Hindsight is 100% Robert Lichota, an investoer of 20 years Robert Lihcota (Robert L, R Lichota)

[TheDBALLYN]

Prechter and EW is a total fraud. Our firm has been following his forecasts for years and according to them, the Dow should be headed to 400, gold and oil should be way down and the dollar way up !

[dleksen]

Oh no! Not lower prices! That would be terrible!!!

[auinvestor2001]

Yeah and so what's new HeeHaw? The Prechter idiot has been predicting depression since 1997. He also predicted gold to crash to $103 in 1998. Prechter is a fricking idiot as is anyone that believes in his BS.

[MillyVanillification]

If bernanke takes his claim seriously, he should resign now.

[johnsenkenn]

Now it's 2011 and still no deflation, and how should that be, when the Fes gives out free money.

[edwardwills]

@johnsenkenn I am on the INflationary side too.  WIth Beneranke how can you have a DEflation?

[markinbohol2]

@edwardwills LOL, in the 6,000 years since G-D created the universe everytime liberals print paper money gold goes up. Go get yourself another cup of tea before the illegals drink it all at the gay wedding.

[rolficus]

my blow up doll will deflate as my ego inflates

[EveryNicksTaken2]

This is total BS and makes no sense at all, inflation though will be a problem in the near future!

Just look at the price of gold witch is a good indicator of FIAT money inflation.

[cajojaUribe]

maybe we should listen to this guy!!!!!!!!!!!!!!

[dink65]

This was a year ago, but it's still right....

[rockerme4u]

Subscribe Now, They will give you a record amount of charts.

Not the ones when they told you to go short in Feb. 2010.

What a ponzi scheme, worse than Bernie Madoff.

Save your money and think.

[paulkawsek]

I cannot understand the others are predicting gold to hit new records if you

have deflation gold being a commodity will decline? they are predicting gold will hit 2500 dollars?

[medliberty]

Astrology.

[imgone54321]

Ben is a smart guy, Robert Prechter is a genius.

[markbradleyvideos]

I am thankful to have seen this video. Great one! thank you and keep up the good work!

[Mycochef]

Canadians know the recession is over! Perhaps we should all now take their lead and join the "RECESSION IS OVER MOVEMENT". Like the weather, economic forcasting models have a dismal track record. They're just mental stimulus "fun activities" for University students and professors, but far from being realistic or good predictors of anything. If you really want to forecast or predict just use "common sense". Try that model.

[NovusChaoMundi]

You can have inflation and deflation at the same time, it all depends on how certain commodities react

[EveryNicksTaken2]

@NovusChaoMundi

No thats impossible by definition.

But you can have monetary expansion and falling prices.

[NovusChaoMundi]

@EveryNicksTaken2 Falling housing prices IE Deflation. Rising food prices IE inflation. Totally possible and happening now.

[straty01]

It's all about how people perceive REALITY!!!!

USD is only perceived as having any value due to how WE perceive value, when the US falls into the abyss is when we will be free.....until the Chinese rape our souls!!!!!!!

It will NEVER end

[measax]

dude nailed it.

[Nuanceqwest]

He was a little early no it but he was right.

The buck has been on a "no negotiation" rally for the past 3 weeks.

[plalelal]

The inflation will be on necessities. The BS stuff will deflate!

[jayangli]

@plalelal what about property?

[michael38921]

I think hes right, that was just part one. I think the fed is propping it up at behest of Obama so the public doesn't panic and we experience a series of step downs.

[Timutimmytim]

decreasing prices are good, yes, just look at how that's helped the tech industry grow over the past 30 years.

Deflation is the solution in the eyes of many economists, but deflation is painful for banks and consumers who have debt leveraged out.

When banks that leveraged to the hilt in debt owed @5% can only make 4% loaning money in the future, look out. Also consumers leveraged with prime house loans at $1500 a month may not be able to pay $1500 a month when their salary drops by 20%.

[Yoetah]

It's the end of August 09, yesterday 29th,

three more American banks were shut down and market analysts are debating the number could be in the hundreds

The media spin is laughable.

Bernanke will appear next week like the hourly clock coo coo bird chirping "All is well"

And Americans will stay in their slumber.

Better the bomb gets dropped but it won't...it's a slow kill

WHO was Norman Dodd?

[fps0chris]

Im confused isnt the decrease in prices good?

[DoctorMurky]

Not if you owe money.

[iljc82]

no it is not. it signals deflation, recession, falling employment (just like the great depression). the worst is if bernanke prints money to jumpstart an economy caught in a liquidity trap. We get stagflation.

[BringBackCapitalism]

His Anlysis is Correct, we are in a Deflationary Depression and it's not stopping. However, technical analysis might not predict the fundemental change and the dollar will likely collapse, and deflation still take everything down, except food, energy, and products made oversees. Kinda what Jim Rogers was saying, only Jim's belief that the farmers would be wealthy and financial services people poor didn't factor in exactly how much the government would hand these bankers, and for how long.

[strongbadassman]

prechter is a moron, we will go through a great inflation, not deflation, check out peter schiff latest video he totally own prechter, bob is a hack, he got lucky once with his eliot Wave theory based on some silly social science formula in the 80's and back when the economy wasnt as complex or globalized, he's awefully lacking insight right now.

[BringBackCapitalism]

No, look at Prechter's more recent calls (i.e., Oct. 07, March 09). Peter's fundamentals are right on, and things might be changing faster than Prechter's Technicals provide; But the fact is, we're in a mad scramble for dollars right now. The beach house I always wanted is now 80% off. To me, this provides strong utility value and although inflation is occuring at the same time (i.e., insurance, utilities, etc.), you can't simply label real estate price declines as the bubble popping anymore.

[nteowl2025]

Precther has already stated in a King world news interview that it is very possible for the country to go through a great inflation, however he and many others believe that deflation has to happen first, especially since from 2000-2007 we already went through a period of the dollar dropping. Oh and calling someone a moron is not very mature.

[najaka5]

just do the opposite of what Prechter says and you will be rich....he is a scam artist. During th egreat Bull market in bonds during the 80's he was short. JR Stevenson, of PruBache got it right. Told investors that you will never see these low prices again this century...He was right

[canuck350]

He's probably more right than wrong on the average but I don't believe his deflation bet, because in order to have a lasting deflation you need a sound currency. The USD is not a sound currency. However, in the short term as the next shoes fall, we could have run to the USD. But, lately, smart BIG money is moving into Bullion. Central banks are now buying.

[edmack4me]

In the '30s we were on a gold standard and credit was tightened so it was deflation now the whole world is awash with cash is trash fiat currency backed by 'trust me' and it's gone digital. Eventual result - hyperinflation to stimulate and inflate away US$100 trillion obligations then, it's the rest of the world on cash trash fiat.

[michael38921]

couldn't you just have defaults in a deflationary spiral, thus removing the obligations? Mass bankruptcies, devalued assets, write offs, loss, etc.

[chromedreamz]

this is the Guy that in OCT 07 predicted a Bottom in OIL?? NIce Call, also Predicted Gold Bottom at $300 in 03, then $400, then $500, etc, . He has predicted things right also. He's like a lot of experts, He gets some right and some wrong..

I say he has about a 50% chance of being right. or 50% chance of being wrong

[poptopic]

This guy suggests deflation. Warren Buffet says watch out for massive inflation. Who am I gonna believe?

How much money does this guy have?

[4footvagina]

does anyone have any more beer?

[mongobobo]

Well, I buy this a hell of a lot more than I do Peter Schiff's decoupling theory.  World markets are FAR too interconnected at this point for anyone country to see a boom while the US sees a bust. Therefore, you either believe that we've seen the worst and recovery is around the corner (inflationary=dead USD) or that the worst is yet to come (deflationary=booming USD)

[golfprobro4eagles]

You can't be serious.

[Nostams]

This guy has no understanding of the world's oil supply.

[ednan9]

and you do?

[Nuanceqwest]

Oh he does.

[30percentplusreturns]

No understanding of the oil supply? Fundamentals dont mean anything buddy. They never have. Prechter has forcasted everything in the past 20 years to a tee! Who cares what the supply of oil is when there is no demand in America due to Obama destroying business with his anti capitalist policies. 70% of america is small business and its pretty much impossible to start a small business these days in America. Trust me. Ive been trying and its more red tape after more red tape. Taxes are also too hi

[chromedreamz]

you say Pretccher has forcasted everything in the past 20 years??, or is it we tend to REMEMBER the things he correctly forecasted??

Do you have a list of correct forecasts?, and then I will provide my List of his "other" forcasts

[30percentplusreturns]

Can you give me some of his wrong forecasts. Just curious. I kind of dont agree with him about the dow collapsing. In terms of gold I think it will, but not nominally. What are his wrong forecasts. Thanks!

[najaka5]

Save your money and do not listen to this guy. During the 80's we had an amazing rally in bonds. He missed this structural rally, he kept recommending short positions. He was also shorting gold . Take me word for it, he has perfected his delivery. He is like those guys who pretend to talk to the dead. A fake of the worst kind.

[BringBackCapitalism]

Thanks for speaking the truth Bob!

[felixiav]

right on robert !!!