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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Ilaine who wrote (27976)1/27/2003 8:46:17 AM
From: Moominoid  Read Replies (1) | Respond to of 74559
 
Seems like you don't notice how much US and European stock markets have fallen in this time period. In 1987-1991 house prices rose during the first few years period from the initial stock market crash to the bust. Then they collapsed. That's the next step in the script here. And as the 1990s boom was bigger than the 1980s one and the stock market collapse so far is much bigger, people following this script think the coming recession will be more severe.

Now we are at the point where oil prices start rising. It didn't last long in 1990....

1979-1982 is another potential model period where the main bust comes 3 years or so after the initial shock.

David