The pain of stock market and economic decline will much more severe than 1929-33 – here are the reasons why?
Alan Hershey
Feb. 27, 2007

It 1929-33, it came, happened and went. The pain was severe and shocking but it did not linger for long. There was the creation of social security. Government had the money to spend and pull the economy out of depression in a planned way.

Thing are different today. 2006-2007 is the years of bubble bursts. In 1929 there was similarities to what we see today but the scale was one hundredth of today. Bubbles bursting in corporate bonds, stock and future exchange ownerships, art auctions, real estate, merger and acquisitions… The list can go on. The zero percent sub prime mortgage loans were common – believe it or not. But there is one big difference between 1929 and 2007. The government was not broke that time. It was depending on Asian Central Banks to buy treasuries.

The deflation is here. The stock market decline has started. The day of using home equities as piggy banks is over. The party has not ended yet but liquidity is drying.

The pain of stock market and economic decline will much more severe than 1929-33. The bubbles were 100 times bigger, the bursts are spectacular and decline is over a longer and more painful period.

An excellent investment idea for the next ten years – buy the sugar sell the equities
Peter Oberois
Stock markets are in steady decline that will extend over decades. Between now and 2020 will be the most of the decline. Smart money is also selling the equities especially in Asia as it is accumulating sugar.
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Worldwide stock markets can decline more than 80% in the next twenty years as economies in US, India and China collapse
Marla Guthrie
A lot of liquidity was pumped in to support certain elements of the economy in the last ten years. The liquidity is now drying. The war, the deflation, the budget deficit, the trade deficit – all are responsible for liquidity drying up.
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Banking collapse is bigger worries that stock market crash during deflation
Joe Weinman
The checks and bounds within the banking systems are as lose as it normally is when a 40 year banking cycle topped out in the past. The cause is similar to the past and common sense says the effects will be similar too.
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The pain of stock market and economic decline will much more severe than 1929-33 – here are the reasons why?
Alan Hershey
It 1929-33, it came, happened and went. The pain was severe and shocking but it did not linger for long. There was the creation of social security. Government had the money to spend and pull the economy out of depression in a planned way.
READ MORE>>

In what pattern will the stock markets decline now? How will the stealth deflation guide the route?
Sam Adelton
As Baby boomers retire, they are leaving the stock market for good. That will create the damper. The demographic shift suggests a fall of approximately 6% a year on an average for the next 20 years.
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Japanese data confirms worldwide deflation – it will slow and steady decline over many decades
Peter Oberois
The deflation is strong and irreversible at this stage. The unnecessary wastage of liquidity in United States and Asia is the root cause of bubble creations.
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