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

GET BOB'S FREE METALS REPORT: http://www.elliottwave.com/wave/silver-vid

Watch Robert Prechter on Bloomberg TV on Nov. 27, 2007, a follow-up interview to his Oct. 19, 2007 appearance for the 20th anniversary of the 1987 stock market crash.

Watch Prechter on Oct. 19: http://www.youtube.com/watch?v=SjS60TaD_J8

What Prechter, once again, 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 Jan. 24, 2008 appearance on Bloomberg television.

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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Category:

News & Politics

Tags:

• U.S.
• recession
• credit
• inflation
• bank
• debt
• federal
• reserve
• fed
• cash
• depression
• elliott
• wave
• prechter
• t-bill
• bloomberg

[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.

[tyroleanScrat]

Good bye brockers!

Hello inflation ;-)

[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.

[mustang607]

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

[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.

[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).

[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

[FanFisique]

All that questions have an easy answer:

"The Money Masters & The US Crisis"

Searchtube....

[marky1333]

Genius.

[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.