U.S. Recession and Credit Inflation and Deflation - Prechter on Bloomberg - November 2007

[tyroleanScrat]

Good bye brockers!

Hello inflation ;-)

[mustang607]

Why is the government solution to a tremendous amount of debt, an even more tremendous amount of debt?

[asierra1492]

Wrong. When the bear market/recession kicks in then the FED lowers interest by creating money. If the FED did nothing interest rates would naturally rise, thats the free market reaction to a recesion. so interest rates in japan and the usa at 2002-2003 should have started to rise, but Central Banks kept them low. in the case of the usa inflating the housing bubble(courtesy of greenspan).

[herbs814]

exactly: central bank intervention is usually pro-cyclical (exaggerating booms and busts) rather than counter-cyclical (moderating the extremes). Intervention by central banks (or government intervention) worsens our economic troubles. restraining the power of central planners (central banks or centralized government) is the best remedy for economic troubles.

Government does not solve problems; it subsidizes them.

[NauticalFILMS]

Get this. DOW JONES is expect to fall this june 1, 2009

[tube4stas]

This man is unbelievable smart. Why he did not get so enough of credit if he really anticipated everything so precise ? I could not believe

[ctrader09]

well, people call him as "right as a broken clock" because he is constantly so bearish. They would say look how he missed the move up from 2003 to 2007, but the bottom line is that was a blow off top and nobody should be invested. People who just criticize others, especially ones who have been right, are just unsure about their own opinion or insecure about themselves.

[FanFisique]

All that questions have an easy answer:

"The Money Masters & The US Crisis"

Searchtube....

[marky1333]

Genius.

[adrianaJacobs]

can somebody can tell me for how long is the deflation last before we hit the hyperinflation?

[callasexperience]

never say never...and forget 1929, because too much is never enough

[30percentplusreturns]

We will never have a big crash because valuations of big companies never get ridiculously low because they quickly get bought out. So if we do have a crash, it will be extremely short lives and will probably bounce right back up. Dont time the markets. Just buy companies after the market corrects. This isnt 1929 where people are leveraged 10 to 1.

[YogaNate79]

The last 20 years, globalization has been gaining. The USA benefited massively from these trends. Its enjoyed unusually robust growth, low unemployment and inflation, and received billions of dollars in investment. These aren't signs of economic collapse. Companies have entered new countries and industries with success, using global supply chains and technology in the vanguard of efficiency. Exports, manufacturing and services have boomed. The USA isn't declining, the world is just catching up.

[batiriskaiasxhmos]

the us will blow up like a big balloon...your hole economic system is based on nothing..thin air...to say the truth i will be very happy to see that...maybe it will change your attitude towards other nations

[BetterThanUForSure]

The solution is:

Stop buying meat and replace that with TOFU.

I am gone now...

[DuctapePenguin]

Chicken Little! OMG! Gloom and Doom! Boy who cried Wolf!

[dnHooligan]

The ship is sinking. Can you swim?

[adrianaJacobs]

how long do you thing we have before hitting the water?

[dnHooligan]

well, it depends on what you mean by that.

the WWF predicts that if we continue on the path we are on, the ecosystem (that supports human life) will collapse, by 2050.

the math problem for exponential growth is scary, when you realize that we do NOT live on an infinite planet.

[Paetaor]

Buy internation funds before other countries catch on to more than they know right now.

[kingobnoxious]

U.S. stocks are poised for more volatility and losses next week, with investors digesting the past week's turbulence, including further evidence suggesting that the U.S. economy is in recession and that the credit crisis shows no signs of abating

[JSmith1560]

It's far too late for a trend reversal. The wheels have been set in motion and there is nothing the federal reserve or government can do to stop it. All the tax and interest rate cuts won't change a thing. Congress cannot come up with a stimulus package that will make a difference. Maybe they could abolish the Federal Reserve Bank, IRS, FDA, and every other government agency that serves no purpose. That might help.

[mercedes75]

THANK YOU!! Why are people wanting the feds to lower interest rates? We don't need people to borrow more. The real wages and lowered dollar value can't afford inflation.

If we stop outsourcing and this massive trade deficit, the economy will get better. The greenback can't be high when deficit is near all time highs. There's no money here. It's solvable. America has so many resources. No doom and gloom scenarios except for corruption. But you have to reverse the trend.

[kingobnoxious]

When's the bear going to hit bottom? Is it bargain hunt time or should we all wait a little while longer?

[JSmith1560]

Stop listening to the news. Have you ever heard them tell you to sell. It's always time to buy according to the media. We are not even close to the bottom, and if you listen to Bob, cash is the position to hold. Do you see bargains? I don't and neither does the economy. You can practically see the social mood shift in this economy and I assure you we are far from seeing the end result.

[kingobnoxious]

Your right JSmith the media is maipulating the truth as things are much worse when you compare stocks to the true inflation (not CPI) based on comodities market. It's going to get a lot worse with market manipulation only delaying and worsening the natural economical course. Invest in Commodities growth until the bear hits bottom then switch to the bargains stocks. Ill keep an eye on Prechter for when this happens.

[kosai19]

If you price the DJI in terms of gold it's valued around 7000. General consensis is that it's valued at about 8000-10000 in dollars. ATM it's at a support area. Either it forms a base and rallies from here or we consolidate, then eventually fall to 8000. I wouldn't be too trigger happy if i were you. And whatever you do don't buy into what CNBC or any other mainstream media reports.

[JSmith1560]

It never ceases to amaze me that the media waits until the market dives to put Prechter on. He has called this since before 2003, and the media basically ignored him. People get what they deserve and to hold on to bullish sentiment given the many signs that the market has given is blind and foolish. When will we pay attention to people like Bob?

[mercedes75]

they're trying to promote America's financial sector to keep it going.

BRAVO. This economy was driven by credit only. When jobs are outsourced and a record trade deficit is going on, there's no where else to get a GDP besides credit. This has been goign on since the tech crash. The deficit accelerated in 97. Once we can leverage America again, the media will be singing happy songs again regardless of fundamental problems. Thats' where I'm getting peeved. This guy is right.

[makemyday0208]

While a graph shows trends the real insight is the variance of those numbers and there relavant comparisons.