Stock Market Crash - Robert Prechter on Bloomberg - Oct. 19, 2007

http://www.elliottwave.com/s.asp?url=/&cn=yt

Watch Robert Prechter on Bloomberg TV on the 20th anniversary of the 1987 stock market crash predict what is unfolding before our eyes today. An uncannily accurate forecast from the man that forecast the 1987 stock market crash.

Why would anyone think that the Fed's actions have any influence whatsoever on the trend in the stock market?

The Fed has similarly cut the discount rate twice in recent months, and on all occasions (Sept. 18, Oct. 31, Jan. 22, Jan. 30) the stock market immediately rallied... only to see prices give back those gains and more, within a few short days or weeks.

Mind you, these are recent and relatively minor instances. There are longer-term examples that unfolded for years, such as the Fed's historic campaign in 2001-2002 that saw a DOZEN rate cuts, during which time the S&P 500 lost HALF of its value.

More dramatic still was the Bank of Japan's campaign that took rates to virtually ZERO for entire decade, even as their Nikkei stock index declined and/or languished over the entire period.

There's nothing new about this information -- we've spelled it all out before, as recently as Bob Prechter's Nov. 27 and Jan. 24 appearances on Bloomberg television.

Watch Prechter on Nov. 27: http://www.youtube.com/watch?v=WJnMia2rARI

With charts and facts, Bob showed how powerless the Fed really is; he also reminded the audience that "People should be careful of what they wish for when they ask for lower rates."

Yes, the financial establishment labels Bob Prechter a contrarian. But, what does it say about that establishment's state of mind when arguments based on facts and evidence make a person "contrary"?

All the charts Bob included in that interview -- in fact, everything he said at the time and more -- is in the current Elliott Wave Theorist and Elliott Wave Financial Forecast. See it all on your computer screen in minutes, via the fast link below.

http://www.elliottwave.com/s.asp?url=/&cn=yt

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[skbakanov]

The rich get richer, the poor stays poor, hardworking get middle finger, the lazy get government help..........

[k3304]

peace, you must know some inside stuff. If i were you, id give a call to the State Dept. You could break that case wide open. Thanks for the insight !

[Serrokot]

Securities are worse than money... It is known to all.

[jabedmorshed]

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[jmmacalalag]

Being bearish for the last 30 years does not make you an expert. As of now he's been bearish for the last 2 years, calling tops left and right, keep calling tops and I guess eventually you'll be right. This guy is one of the biggest crooks.

[jackgoldman1]

Prechter hit the exact peak here. Wow

[OptionsSchool]

I remember this period well, Mario Marciano told me we would have consecutive corrections of 15% in 2008 before the year ever started! People who want to watch CNBC to get their news typically blow off the true technical and economic analysis!

[TomHbirbeck]

Wow he called that right.

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[fizban1977]

On May 6th 2010, the stock market was manipulated. I explain how and who did the manipulation on my channel.

[TYX91101]

Study the 1929-1032 Dow chart. The initial plunge was followed by a recovery bounce. At the time it was assumed the worst was over. Same pattern and psychology exists today. The May 6 panic selloff was the opening bell for the most devastating decline since 1930.