Are the markets about to fall 90%?

I saw this on MSN earlier and thought it was relevant to ATS so here it is.

Are the markets about to fall 90%? There are rumblings in the US that we could be facing a stock market 'apocalypse' on a scale not seen since the 18th century. Is there anything to them?

Stocks in both the US and UK have gone pretty much nowhere in the last 10 years but, if stock market analyst Robert Prechter is right, the past decade will look like an era of milk and honey compared with what's about to happen. Prechter reckons the Dow Jones will fall to 3,000 or even 1,000 points at some time in the next five to seven years. That's from a current level of around 10,000.

Rest of the article is here.

Wide-Eyes

I have heard of these figures, supposed falls, predictions about the end BUT then everything keeps rumbling on... When you read other threads about the continued need for Credit, Mr Benanke and his views MORE credit, BP being bought out by Exxon because it is a 'strategic' investment etc etc, blah blah blah......... I would quite happliy welcome a 're-adjustment' to our financial world and expectations however this would be at a massive PRICE to everyone and I doubt if most people really understand what a drop in the markets like this would actually mean to them, personally.

Regards

PurpleDOG UK

Teh spice must flow.

The markets will not fall 90%. If they do, they will fall 100% because it will be the apocalypse. Other than that, I wouldn't expect anything more drastic, unless you are talking on a century-level timescale.

Prices could certainly continue to loiter around their current unsavory level, as they have been doing for most of the past decade. But in the face of slow steady future inflation, 90% drops are unlikely at best.


[edit on 7/13/10 by silent thunder]

You can not keep putting water in the petrol tank and unless the USA exports more than monoply money then it's all going to come to a stop.

like the other poster said it would crash before it went down 90% and without a crash they woun't get the amero off the ground with it's personal carbon tax made payable to the IMF.

much of the down leg will be hidden due to the devaluation of the $ and it's no good trying to measure that against the GBP or the Euro because they are all going down and even gold does not offer a point of referance because the bankers have $1000 worth of paper for every $1 worth of the real stuff and can play with the price, for now untill the cows come home.

During this depression when Ford has trouble moving cars the price went up for Fords here in the UK not that many are selling so i think we are already seeing our money devalue by about 7% p.a which is a result of printy, printy just to bail the bansters out.

found this today.......

Crisis Awaits World’s Banks as Trillions Come Due

www.nytimes.com...

too many banks and gov'ts competing for too few loans just doesn't sound like a good environment for economic growth. but then, I'm kind of surprised that they've held the house of cards together this long. The fact that they have held it together this long has kind of given me the impression that the economy is a sham anyways.....and well, maybe the banks and governments through the manipulations, printing money, ect can keep it running indefinately.......
if they want to....

heck, just declare a year of jubilee, all debt is wiped out, the house, the car is yours now, no person, no business, no gov't owes anyone any money and let's all go on our happy merry way.....what the heck, we all owe more than we could pay off anyways, and well, the bank that I owe money to has leveraged it so outrageously, they will make out far more than I will be!
it would be a win, win, win situation for everyone!

I propose to immediately replace banker's bonuses with wooden spoons if it happens...in fact couldn't we do that anyway?

Originally posted by Wide-Eyes

Stocks in both the US and UK have gone pretty much nowhere in the last 10 years but, if stock market analyst Robert Prechter is right, the past decade will look like an era of milk and honey compared with what's about to happen. Prechter reckons the Dow Jones will fall to 3,000 or even 1,000 points at some time in the next five to seven years. That's from a current level of around 10,000.

Rest of the article is here.

Well for someone whom is supposed to be a guru he doesn't understand mathematics very well...

if the Dow is at 10,000 and you minus 3000 then that is of course 30% drop... If you minus 1000 that is a 10% drop...

If it is some kind of mistake and they meant 10,000 not 1000 then it would be a 100% drop...

So I say this article is total hogwash!

Korg.

reply to post by Korg Trinity


I thought it said fall "to" 3,000 rather than a 3,000 point fall... and I assume the fall "to" 1,000 is a 9,000 point fall

reply to post by Wide-Eyes


IMHO they'll not let the markets fall since it would undermine the elites control over us the people... way before that happens they'll implement a raft of measures to control the markets (as they do in times of major conflict)

So, IMHO there is no chance of this happening... be nice to have a level playing field, but that is not going to happen..

[edit on 13/7/10 by thoughtsfull]

are you speaking of the DOW or the NYSE, two different animals

now, i can see the NYSE crumbling some 2-3,000 points

but as for the DOW... well the 30 DOW stocks change with the face of the economy
And the big market manipulaters (those dozen or so Primary-Dealers in FED lingo) are up to their eyeballs in HFT [high-frequency-trading]

and then covering their risks with severely unfunded Derivitives (which the taxpayers have so far funded for those Elite banksters)

so... no to a severe crash in 1-2-3-4-5 years or more...because the DOW will become a playground-casino market place for the HFT's & shove aside the Funds and the Main-Street Mom-&-Pop investers, even if they dare to enter into the DOW market...

there could be many future May 6th mini-crashes engineered to suck dry the unwary

Originally posted by thoughtsfull
reply to post by Korg Trinity

 

I thought it said fall "to" 3,000 rather than a 3,000 point fall... and I assume the fall "to" 1,000 is a 9,000 point fall

[edit on 13/7/10 by thoughtsfull]

You're quite right, my mistake.

A case of me reading the article at 1000mph at the same time as doing about 10 other things

I still say he is wrong. It's easy to say the markets will fall and be validated cause that is the very nature of the markets.

what’s more is a 90% fall need not be as devastating as it may initally appear.

Ponder this...

If you are stood on an island just above sea level and the island sinks then you drown, but if the sea level were to lower at the same speed as the island then there would be no discernable effects to the inhabitants of the island.

If you see what I’m getting at??

Korg.

[edit on 13-7-2010 by Korg Trinity]

reply to post by PurpleDog UK

I would quite happliy welcome a 're-adjustment' to our financial world and expectations however this would be at a massive PRICE to everyone and I doubt if most people really understand what a drop in the markets like this would actually mean to them, personally.

I agree, a re-adjustment would be great but it would be very painful, not only to the everyday citizen but also to the people higher up the pecking order. This is why it would only happen if there was an epic crash. If the people at the top could negotiate some sort of gentle re-adjustment starting now and create a more level playing field then we could have a fairer, more balanced economy but we all know that will never happen.

It's all or nothing with the big banks and they are creaming so much off the economy, why would they want to rock that boat.

reply to post by silent thunder


I totally agree, there will be full collapse before the stocks drop that much.

Originally posted by curioustype
I propose to immediately replace banker's bonuses with wooden spoons if it happens...in fact couldn't we do that anyway?

If only we could. However they were born with silver spoons in their mouth's, we were born with wooden ones(unless you happen to have a rich family of course).

reply to post by Korg Trinity

Ponder this... If you are stood on an island just above sea level and the island sinks then you drown, but if the sea level were to lower at the same speed as the island then there would be no discernable effects to the inhabitants of the island. If you see what I’m getting at??

I do mate, I'm broke as f*** so an 'economic apocalypse' wouldn't really make much difference to me anyway!

But yes, if it is all relative then we would all be ok. Trouble is, when there is a depression, the poor usually starve to death while the rich are still rich.

[edit on 13-7-2010 by Wide-Eyes]

Bernanke solution to a bucket with a hole in it, is to pour in more water. As the hole gets bigger, he just pumps water in faster.

I doubt the market will fall, because they will just unleash the Niagra of money printing into the commercial bankster scums banks to keep the bucket full.

EDIT: The proper analogy now though, is a bucket with no bottom on it.

[edit on 13-7-2010 by Amagnon]

Originally posted by curioustype
I propose to immediately replace banker's bonuses with wooden spoons if it happens...in fact couldn't we do that anyway?

wooden spoons???

Better yet - little lead balls, even upmarket ones with copper jackets

I love these posts. The truth is that 90% of investors will be scared into selling their holdings as we enter the largest bull market in the market's history. The bad news is already all out there. Publicly traded companies are making large amounts of money with huge stashes of cash in the bank. As we see any recovery whatsoever, this will go straight to the bottom lines, which in retrospect will show that the current market is drastically undervalued. Double your money in five years buying the whole market and triple it in ten years (then sell).

reply to post by Korg Trinity


not to worry, I've done that frequently

I do understand what you mean, it would make very little difference to my life and this story is only doom mongering with little purpose or reason but to fill media space.

My point was that for a slide to happen, it would only happen if the elites allowed it to.

Even if the circumstances where beyond their control (highly improbable) I really think they would ensure thei buddies in Gov would roll out emergency legislation to protect their assets while watching everyone else drown.

Following on your analogy.. my take is that only one side of the island would sink while the other sides rises, as the richer get richer the poor drown.

Oh I'm in a cycnical mood today..

Originally posted by sligtlyskeptical
I love these posts. The truth is that 90% of investors will be scared into selling their holdings as we enter the largest bull market in the market's history. The bad news is already all out there. Publicly traded companies are making large amounts of money with huge stashes of cash in the bank. As we see any recovery whatsoever, this will go straight to the bottom lines, which in retrospect will show that the current market is drastically undervalued. Double your money in five years buying the whole market and triple it in ten years (then sell).

I wish I had an extra dime or two, but of course in this economy I am hurting, but if I did, I would invest in the market right now. I have the sneaky suspicion that you are right. No real info, just the fact that it has been spoken so widely now to get out of the market, that I think it's time to get back in. Feels like it.

Unless, all the conspiracies are all correct and 2012 is real, I think the market will survive. Can you imagine such a great racket being shut down? You think that mob will go quietly?