Lend Half an Ear to This Doomsayer
biz.yahoo.com
<<...Prechter comes to this conclusion less from economics than psychology, his major at Yale University. Later, while at Merrill, he picked up the "wave" theories developed during the Depression by an accountant named R.N. Elliott. These hold that market prices follow definite patterns driven by a natural rise and fall in human emotions. In this deterministic scheme, the higher that emotions--and markets--rise, the further they must eventually fall under the weight of an economywide accumulation of too much debt and the ensuing defaults.
So in his Elliott Wave charts, Prechter sees an inevitable stock market collapse that has already begun, an economic depression, and a breathtaking deflation in the prices of most every type of asset. Houses worth $500,000 today will wind up going for $150,000--or less. Banks and insurers will fail, so Prechter's book points readers to those with the safest balance sheets. Given such a climate, he thinks George W. will be another single-term Bush. "Most radical political developments occurred at or near social-mood bottoms, which also were major stock-market bottoms," he said...>> |
