The stock markets across the globe have started a very nasty down leg that can end up in serious meltdown and crash
Peter Oberois
Mar. 28, 2007

The deflation was building for a long time. India and China exported its deflation to the Western nations through the mechanism called outsourcing. The Japanese deflation never really ended. In America a bubble was created with the help of credit (borrowed money) to any one and every one to boost real estate price and find temporary relief from the dot com bubble burst in Year 2000.

The stock markets across the globe have started a very nasty down leg that can end up in serious meltdown and crash. The deflation, deep recession changing into outright depression will cause massive collapse in stock prices.

Lower consumer confidence, lower business spending, mortgage defaults, collapsing home prices, bankruptcy among banks, lack of solvency of FDIC, huge budget and trade deficit, Social Security and Medicare fund problems – all are reasons for worry.

The biggest reason for the crash will be corporate scandals, option back dating and financial book manipulation scandals. The merger and acquisition mania based on borrowed money is creating the bubble and the basis for crash.

The stock markets across the globe have started a very nasty down leg that can end up in serious meltdown and crash
Peter Oberois
Lower consumer confidence, lower business spending, mortgage defaults, collapsing home prices, bankruptcy among banks, lack of solvency of FDIC, huge budget and trade deficit, Social Security and Medicare fund problems – all are reasons for worry.
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A spike in crude can cause the April crash of sock markets across the globe – higher commodity inflation and stagnation as well as deflation in most sectors
Fred Day
A limited military confrontation with Iran can create a spike in oil market to $100 a barrel. That in turn can cause the April 2007 crash in the stock markets across the globe.
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A massive rise in durable goods order may boost dollar and stock market but economy suffers from lower consumer and business confidence
Karen Zuba
The rise is cyclical and will be short-term boost for the stock market and perhaps a relief for dollar index. But the economy is suffering from long-term problems.
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Federal Reserve determined to keep rates on hold – a catastrophic move that can cause deep recession or depression and take Dow below 7,000 by end of 2009
Marla Gurthrie
In 2009 we will look back and understand what big a mistake the Fed made. It will be too late then. Fed is not seeing the real problem – the stealth deflation that is taking control of the whole economy.
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Time to invest in real estate or stay away from it?
Karen Zuba
The new home sales figure shows deepening crisis with largest number of unsold homes in the last sixteen years and rapidly falling prices with lower confidence in the real estate market.
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Oil nears high as gasoline stockpile report will show adequate supply due to cooling economy
Sonia Abazedi
Tomorrow the gasoline stockpile report will show adequate supply due to cooling economy. It will drag gasoline and crude process down. The diplomats are eager to work a deal to free the British soldiers held by Iran.
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Asian Development Bank acknowledges slowing world economy but fails to recognize deflation that is creating the scenario for worldwide depression
Peter Oberois
The slowdown will accelerate. The ADB fails again to understand the same. Last time they said the growth will be rapid and at record levels. Now they have started revising it downwards. The worldwide depression is imminent.
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