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Banking System in Crisis: "Economic Collapse Part 2" Ahead?
Prepare now for economic events, before they happen

By Bob Stokes
Wed, 19 Oct 2011 16:00:00 ET
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When it comes to small stuff, most of us put off till tomorrow some things we should do today.
 
But if your financial and economic future is at stake, delay can mean "lost opportunity" -- or worse.
 
Consider the steps to financial safety Bob Prechter provides in Conquer the Crash (first published in 2002). He says people who didn't take those steps now face increasingly limited options:
 
"As time progresses, opportunities disappear. The safest bank in the U.S. no longer takes out-of-state accounts. The safest annuity program in the world no longer accepts new policies. A major Treasury-bill fund now limits the size of new investments. People who acted when we recommended these opportunities are in an advantageous position. Options are limited for those who waited. Nevertheless, good options remain."
Elliott Wave Theorist, June 2011
 
What are those options?
 
You can find them in the updated, 2nd edition of the book which foretold the financial crisis: Conquer the Crash. What does Prechter say about the near-term future?
 
For starters, he observes that the "banking system [is] still in crisis." Here's an excerpt from his September Elliott Wave Theorist:
 
"In the late 1990s and mid 2000s, the loan-to-deposit ratio for U.S. banks was nearly 1.00, meaning that almost all deposits were lent out. That shortfall alone was a serious problem, because if even 5% of depositors had decided to withdraw their money, banks would have been unable to pay. Some of the banks’ loans were quickly callable, but by 2006, the credit-fueled real estate boom had claimed a large percentage of outstanding loans, both inside and outside the banking system. These loans are not quickly callable. The problem was serious in 2002 and enormous in 2006. Now it has become acute..."
 
Then he goes on to explain exactly what "acute" means.
 
Many people dismissed the forecasts in Conquer the Crash when it published. Yet many of Prechter's forecasts were spot on -- and there's more to come.
 
It remains the most relevant book in print to help you prepare for today's increasingly grim economic trends.
 
You can have this New York Times bestseller, with your risk-free subscription to our Financial Forecast Service. This limited-time offer amounts to $135 in savings.
 
The Financial Forecast Service includes The Elliott Wave Theorist (monthly with interim reports when market conditions warrant), The Financial Forecast (monthly) and Short Term Update (3-times weekly with special issues when market conditions warrant). 

Learn more about our risk-free, special offer on our flagship Financial Forecast Service and getting your complimentary copy of Conquer the Crash, second edition>>  


   

Banks and the Economy: Prepare Now for What We See Ahead

 "One day [the] shortfall in collateral value will impress itself on people’s minds, and there will be an unprecedented run on banks around the globe as panicked depositors try to become the first ones out the door."  -- Elliott Wave Theorist, September 2011

Read more of our latest economic and financial analysis in the Financial Forecast Service.

Plus learn the "financial safety steps" provided in Conquer the Crash, second edition. A complimentary copy of this "prepare and prosper" guide is included with your no risk, limited-time special offer to save 57% on our Financial Forecast Service>> 

Tags: banks, conquer the crash, Robert Prechter
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