An interview with Bob Prechter appears in the current issue of Barron's magazine. Obviously I'm biased, but it may well be the best summary I've read in the media regarding the "how" and "why" of the current economic crisis. Readers who do and who don't know Bob can benefit equally from his views.
Fair use allows me to excerpt a couple of quotes, such as Bob's reply to the question, Will [government] policy decisions being enacted now ameliorate or exacerbate the current decline?
"Governments' policy decisions hamper and ruin economies all the time, but their meddling does not affect waves of social mood. On the contrary, waves of social mood generally spur governments to act. The 1929-1932 collapse caused the government to get restrictive and separate commercial and investment banks in 1933; this was after the bust it was designed to prevent was over. The 1990s boom caused government to get frisky and repeal the act in 1999; this was just as the boom it was designed to foster was ending."
Asked if he prefers "dollars to other currencies," Bob said
"Because it is so sick, it is the currency most likely to rise during the deflationary period as dollar-denominated IOUs collapse. Regardless, my currency mix includes what I consider to be very safe foreign debt and some gold. You have to realize that almost everyone loses in a deflation. The key is to lose a lot less than everyone else. Market opinions are one thing; safety is another."
I'll let the final Q&A speak for itself:
Q: So in spite of this [stock] market run-up, there's more misery ahead?
A: If you stay safe, it's the opposite.
Doom, gloom and misery are indeed the "opposite" of what Bob Prechter is all about. The purpose of his forecasts is to help individuals remain safe and prosperous. Learn what
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