It's amazing how so many people quickly relegated the 2007-2009 financial crisis to an unpleasant memory.
It's true that bear market rallies can cause investors to believe that the previous downturn was "it." But the 2007-2009 market crash was no garden-variety correction. As you'll recall, policymakers said we were on the verge of a "financial Armageddon."
But staring into that financial abyss apparently was not supposed to change anyone's behavior. It was just months later that you could hear the collective "Whew, I'm glad that's behind us," as if our financial problems had disappeared.
The optimistic psychology that drove decades of economic and market gains took over again. But be warned: optimism can resurface when the gains do not.
Meanwhile, Wall Street and the financial establishment still say the market is going higher, and/or that we've seen the low for the year. Others insist that we will avoid a "double-dip" recession.
But the economic story the mainstream doesn't report is not that we're on the edge of a "double-dip" recession. It's that we're already in the probable early stages of a far more serious economic turn.
"...the world economy [is] nearing the point of no return."
Elliott Wave Theorist, June 2011
"In 2008 there was a credit crisis. The next five years will bring on the credit crisis."
Elliott Wave Theorist, September 2011
So how close is the economy to the "tipping point"?
You can see a "dropping like a rock" chart in the September Elliott Wave Financial Forecast. It shows just how close we are to falling below the "economic activity" low of 2008!
Moreover, the just-published Elliott Wave Theorist shows you why the banking system is still in a crisis, and has a section sub-titled The Coming Worldwide Bank Run. Learn why Robert Prechter says, "...the elements of a worldwide bank run are firmly in place."
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