Banking collapse is bigger worries that stock market crash during deflation
Joe Weinman
Feb. 27, 2007

No one in the market place believed Dow could for down 400 points or more in a day of 2007. The VIX (the scare indicator of Wall Street) showed the level of complacency.

What is really scary is the total confidence of the people on the banking system. The recession during deflation is so severe that 50 to 70% of the banks can eventually go belly up from losses in real estate, investment portfolios and more.

Banking collapse is bigger worries that stock market crash during deflation. The complacency and trust in banking system is even scarier. 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.

The banks and financial institutions are paying salaries and bonuses like never seen in the past ever since the decline of Rome. These are signs of bubbles. The confidence is so high that overconfidence will eventually bring down the banking empires.

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.
READ MORE>>

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.
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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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Durable Goods Orders crashed – business confidence down, stagflation changing to deflation
Karen Zuba
It showed the weakness in the business confidence. It is also affected by the fact that economy in the last three months of 2006 grew less than the government previously estimated as companies stepped up efforts to curb inventories.
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