Follow The Bottom Violation
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Mar
19
1929 Stock Market Crash All Over Again?
This is a terrifying video comparing the 1929 stock market collapse to the current economic environment (click chart for video). Is another equity implosion on the way? Consider these facts:
In 1929, the United States was on the gold standard. The country was a manufacturing giant. Debt levels were insignificant. Credit cards didn’t even exist.
Today, the United States has lost most of its manufacturing base. Consumer debt is at all time highs. There is no gold backing the dollar. The government’s debt levels are unprecedented. Add to all of this the reprehensible and reckless policy of quantitative easing — whereby authorities all over the globe are printing massive sums of money, and easing credit to levels never before seen — and you have a recipe for disaster.
All of this leads me to maintain that we are on the cusp of an inflationary economic holocaust most people simply can’t fathom. This video helps bear bear out my concerns from a technical perspective.
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Disclosures: Paco is long TBT, UCO, and gold. He also holds U.S. dollars by necessity, pending the advent of private gold-backed currencies.
You can buy his novel Discipline wherever books are sold.
19 Comments so far
Partners
you sir, are and idiot…
@billy: it was an intelligent theory and just because you can't understand it doesn't mean that you must discount it… also, proof read what you type so that you don't look like an imbecile yourself.
@Paco: if your theory is correct i think that i may want to have my next couple of pay checks cashed in all one dollar bills so that i can at least have something to burn when it's cold.
I wish I had a euro for every time I've been called an idiot. I'd have a lot of euros.
I wish I had a euro for every time I've been called an idiot. I'd have a lot of euros.
i wish i had a euro for everytime that someone “flamed” someone because they (the flamer) didn't know what they were talking about. i would be able to move out of texas. You still live in texas don't you?
Yep. Still in Texas…
That's why we distrusted the recent rally; too symptomatic of 1929.
It's a necessary cycle in human history. It must get so bad that people are ripped from office and riots occur, tearing down the old and bringing in the new.
Just prepare as best you can.
I recommend packing one's auriferous possessions, argentiferous utensils, canned foods, jerry cans, clothing and family and head for the back country to do some camping.
I'm hanging out in suburbia….I'm a adrenalin junky…I need action.
Listen up, Economic Joker. What you say is no joke but it will happen any way.
Having said that, my only hope is that it will all unfold in such a manner as to allow me to profit from it.
To know where you are going, firstly know where you have been.
History is indeed a non-compassionate teacher. You either learn the lessons, or you are cursed to repeat them.
There is a confluence of events about to descend upon the globes financial sector, effecting all economies of the globe.
- Sovereign debt defaults
- Market crashes
- Currency implosions
- Supply stoppages
- Food shortages
- Political unrest
- Friction amongst nations
- Social fabric breakdown
- War, possibly on a global scale
I know. I know. Too much doom & gloom. This is the way I see events unfolding, unless there is a MAJOR turn around. And I mean MAJOR! Without that – it's best to be prepared.
Donald Ingram: A prudent person would take your list and develop a contingency plan for each item.
So I'll reiterate your list with additions of what to do.
Sovereign debt defaults — Buy gold
Market Crashes — Diversify globally
Currency Implosions — Buy gold
Supply stoppages — Start a small business
Food shortages — Fill freezers and pantries
Political unrest — Move outside of major cities
Friction amongst nations — Nil
Social fabric breakdown — Acquire a guard dog
War, possibly on a global scale — Nil
TEST 2
TEST
I rarly comment on blogs but I really like yours.Its hard to find good bloggers these days … everyone seems to be doing it for the $$:(
Diversification is key to have a successful portfolio within the Stock Market.
"Don't put all your eggs in one basket".
My recent post “Revolvers”
Diversification is key to have a successful portfolio within the Stock Market.
"Don't put all your eggs in one basket".
My recent post “Revolvers”
How rude to come to someones blog and call them an idiot. Surprised that comment even made it through!
Personally, I think you are correct. Since you wrote this in March, I imagine this prediction has started coming true in ways you didn't imagine. The US tried the old, have a war to generate revenue once again, except this time it failed miserably.
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