Thread: Robert Prechter and the Economic Crisis No One Saw Coming

Robert Prechter and the Economic Crisis No One Saw Coming

Stock-Markets / Financial Crash Aug 10, 2010 - 02:14 PM
By: EWI

The single most convenient untruth about the 2008 (and counting) financial crisis is that it was unforeseen. For two years policymakers have insisted "There was no way to know ahead of time" that the liquidity boom would come to a screeching halt. Back in November 2008, in fact, the usually tight-lipped Queen of England herself publicly described the turmoil of international markets as "awful" and openly asked a panel of experts from the London School of Economics "Why did nobody notice?"

Her Majesty is right: Most financial authorities did NOT notice the crisis before it was too late. Comedy Central's "The Daily Show with Jon Stewart" of all places provided the most poignant evidence: A March 2009 video montage shows executives and economists from the world's leading financial firms repeatedly forecasting continued upside strength in stocks, plus renewed bull market growth in financials -- right as debt markets came unhinged and the US stock market headed into a 50%-plus selloff.

Dubbed the "8-Minute Rap" (after the "18-Minute Gap" of Nixon's Watergate tapes), the Daily Show video feature sent an equally powerful message, as the clip below makes plain.



Video at the link: http://elliott.vo.llnwd.net/o18/analyst ... final.html

The clip below is from a 2007 Bloomberg interview. Clear as PLAY, the foreseeable nature of the crisis emerges from Bob's October 19, 2007 interview.



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

http://www.youtube.com/watch?v=SjS60TaD ... r_embedded

As the historic trend change began to unfold, Bob issued this timely insight:

"We've seen the first crack in the credit structure with a huge drop in commercial paper... These are the harbingers of a change toward the downside for the stock market, commodities including oil, and the debt market itself."

This article, The Economic Crisis No One Saw Coming: A Convenient Untruth, http://tinyurl.com/35why8o was syndicated by Elliott Wave International. EWI is the world's largest market forecasting firm. Its staff of full-time analysts lead by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

http://www.marketoracle.co.uk/Article21788.html

I'll say it again and again and again ... don't listen to crack heads that know nothing about finances; the markets or the economy

It's your money, protect it, protect it protect it

there are people that will lie to you blind thinking they are doing you a favor or give you a warm and fuzzy

there are others that manipulate data for financial gains

a 6th grader with a good calculator could see damaging numbers

Think for yourself... protect YOUR MONEY

Here are some headlines from the last couple of days at a good source http://www.moneynews.com/

Economists Cut Growth Views, Warn GDP to Be Revised Lower

More Stories

* GM Aims to Use Solid Earnings to Lure Investors
* Big Trade Gap Reflects Slower Economic Growth
* Fewer Job Openings Mean Hiring to Stay Slow
* Wheat Price Surge May Spark Global Food Riots
* Obama to Increase Housing Aid for Unemployed

Street Talk

* Volcker: There's No Way to Save Fannie, Freddie
* Ross: Higher Taxes on Rich OK if Cash Spent Wisely
* Govt Workers Paid Double That of Private Sector
* Economist: V-Shaped Recovery Is Here to Stay
* Firms Raise Dividends Amid Increased Confidence
* Bearish Bets in US Stocks Eased in Late July
* Study: Wall Street Increasingly Favors Republicans
* Rate Futures Traders: Fed on Hold Until Late 2011
* China Warns Home Prices May Plunge 60 Percent
* CEO Confidence Drops for First Time in 12 Months
* Moody's: Many Money Funds Nearly 'Broke the Buck'
* Investor Cheer Lures Market Bears Out of the Woods

Finance News

* Deficit at $165 Billion, Below Last Year's Record
* Fed to Buy $18 Billion in US Debt to Spur Recovery
* Dow Falls 2.5 Percent as Investor Gloom Grows
* Moody's: Crisis Left Money Fund Industry Reeling
* Dollar Hits 15-Year Low Against Yen on Global Fear
* ING's Profit Jumps Despite Insurance Charges
* Trade Deficit Widens to $49.9 Billion in June
* US Pushes for Significant Bank Capital Boost
* Record Low Mortgage Rates Can't Boost Demand

Economy

* Deflation Fears Threaten Big-Ticket Retailers
* Rhetoric Dims Hope for Social Security Compromise
* German Experts Debate Lifting Retirement to 70
* Median Home Prices Rise in Most US Cities
* Japan's Machinery Orders Rise Less Than Forecast
* UK Consumer Morale at Lowest Since May 2009
* Unemployment Forces Home Sellers to Cut Price
* Bank of England Cuts Economic Growth Forecast
* China's Economy Cools as Inflation Soars

Companies

* Cisco Net Soars but Revenue Disappoints Analysts
* Nestle Posts $5 Billion Profit, Raises Outlook
* Macy's Shares Up as Profit Surges, View Raised
* Disney Profit Soars 40 Percent on ESPN, Hit Movie
* Boeing Assessing 787 Manufacturing Issues
* Wendy's to Open 180 Restaurants in Russia
* Lions Gate Swings to Loss as Revenue Falls
* News Corp. Sells Stakes in China TV Businesses
* JP Morgan Study: Wal-Mart Prices Are Rising

Markets

* Airlines Cut Jobs Two Straight Years, Data Show
* Global Oil Demand Seen Rising Slightly
* As 39,000 Spill Claims Dangle, BP Defers to Feds
* South Korea Probes Google's Data Collection
* Feds: Storms Delay Drilling for Final BP Well Plug
* Google to Introduce 'Street View' in Germany
* GDF Suez Seizes International Power, Forms Giant
* Verizon, Google Outline Vision on Internet Traffic
* Saudi Arabia to Continue BlackBerry Service

Investing & Analysis

* Analyst Sees Stronger Half for Home Depot, Lowe's
* Transport, Jet Bonds May Yield Exotic Debt Return
* Financial Advisers May Be Next Wall St. Casualty
* Best Buy Falls on Downgrade, Slowing TV Trends
* Fed's Policymakers Hold Power Over Your Wallet
* Federal Reserve Policymakers Statement
* Planemakers Plot Critical Move in Engine War
* Gartner Hits High on Strong Results, Buyback
* A Look at the Fed's June, August Statements

http://www.moneynews.com/

PAY Attention to Protect YOURSELF and your Family