Posted on 01/15/2016 9:26:39 AM PST by SeekAndFind
It would be worse than the financial crisis.
You don't have to listen very hard to hear the bears growling on Wall Street, London, or Paris, these days. Indeed, the Dow Jones Industrial Average was down another 300 points on Wednesday to just under 16,200.
With the U.S. stock market sagging, oil off to its worst start ever, and the China's economy continuing to deteriorate, bearish analysts have a wealth of evidence to point to.
And they don't come much more bearish than Albert Edwards, strategist at Societe Generale. He's not had much nice to say about the global economy in years, and recent events have only hardened his convictions that the world is headed for disaster, and will take the prices of equities down with it. How much? Edwards predicts the U.S. stock market could plunge as much as 75%. That would be worse than during the financial crisis, in which stocks from their peak to trough dropped a brutal 62%.
In a research note published Wednesday, Edwards argued that ever since the last financial crisis, the global economy has been dependent on the Federal Reserve's massive bond buying program to prop up equity prices and stimulate growth in emerging markets. "A commodity bubble and the resultant U.S. shale investment boom were all consequences of the Fed's QE," Edwards writes, referring to the U.S. central bank's efforts to lower long-term interest rates. Now that the Fed has stopped buying bonds and has actually moved to raise rates, the artificial growth in asset prices that we've seen since the last financial crisis will come undone, according to Edwards. "The illusion of of prosperity is shattered as boom now turns to bust," he writes.
Like other analysts who are increasingly bearish, Edwards marshals the recent events in China as evidence
(Excerpt) Read more at fortune.com ...
Good thing I have that social security thing to fall back on, you know that thing where they made me pay into the last 40 years and then steal from.
On Obama’s watch too!
I have a feeling Janet Yellen is going to wake-up next to a horse head one of these mornings. The Hillary logo will be stamped on it.
I moved my 401k out of stocks and into cash and bonds last week.
It’s just a flesh wound. Don’t lose yur head! I hear ISIS is hiring.
Dow down over 500 points... guess seven years of Obama’s horrible decisions are catching up with us.
Wait just a darn minute, there everyone - Obama just said two days ago that nothing in the world has ever been better! Why would he just make stuff up?
He’ll just say it’s conservatives fault for always blocking what really needed to be done.
Gives him an emergency to stay in power for a while l9nger.
After doubling the national in less than 8 years!
This Frustrated American Had Enough Of Obama’s Lies, What He Did Next Is Absolutely Brilliant
Lucky for Obama the press is so corrupt they’ll print any lies he wants out there.. so you have a point.
Did you know it was a video that caused the deaths at Benghazi? Well, according to the MSM... which carried Obama’s water... and lies. And played everyone for fools...
The biggest doomsayers always get press quotes. Yeah, the markets could see a big drop.
Is that from QE being turned off?
Nope. That analyst is an idiot. Oil was coming *down* in price circa 2008-2013 while QE was still on-going. QE didn’t end until October of 2014.
Oil was at $145/barrel back in 2008.
So it wasn’t QE (or turning it off) that brought down oil.
Nope.
Instead, oil fracking increased supply while electric cars, hybrids, and more efficient engines reduced demand.
Supply. Demand. Basic economics.
Then the Saudis freaked out about their marketshare being eroded by frackers. When the Sauds increased their oil sales, the price *really* plunged.
Frackers and Sauds are not the Fed and QE. I say this because that analyst doesn’t know it.
Idea for great cartoon.... Hillary, Obama, Kerry, Biden and Moocho on the roof of the White House all 4 pissing on the people gathered below while the media rep holds up signs in the courtyard forecast calls for more rain....
You’ll find that you sleep much better.....we went all cash several years ago, and then against the “advice” of my parents’ Charles Schwab guy (Their nest egg was pretty much all stocks, and I became Trustee as they both drifted into dementia), I did the same with their portfolio - just weeks before the meltdown; probably saved the estate over 100K.
WalMart closing more than 100 stores in USA.
Well, most will say the Obama Great recession has yet to take it’s toll on the stock market, until now.
It’s over for Hillary.
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