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Economy on the Brink: Why Mitt Romney May Eventually Be Glad He Lost
Romney won't have to be the next Herbert Hoover

By Bob Stokes
Fri, 09 Nov 2012 17:45:00 ET
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A Taoist tale reveals the wisdom of having a balanced perspective on life. 

There was an old farmer who had worked his crops for many years. One day his horse ran away. Upon hearing the news, his neighbors came to visit. “Such bad luck,” they said sympathetically.
“Maybe,” the farmer replied.
The next morning the horse returned, bringing with it three other wild horses. “How wonderful,” the neighbors exclaimed.
“Maybe,” replied the old man.
The following day, his son tried to ride one of the untamed horses, was thrown off and broke his leg. The neighbors again came to offer their sympathy on his misfortune.
“Maybe,” answered the farmer.
The day after, military officials came to the village to draft young men into the army. Seeing that the son’s leg was broken, they passed him over. The neighbors congratulated the farmer on how well things had turned out.
“Maybe,” said the farmer.
Now consider what Robert Prechter said in the September 2012 Elliott Wave Theorist:
Vote for whichever candidate you like the least.
In discussing the years ahead, Prechter said that whoever is President will turn into "an outsized version of Herbert Hoover."
You probably know that President Hoover was in office when the stock market crashed in 1929 and the Great Depression began. His name became forever linked to the economic disaster. For example, shanty towns built by the homeless around the country were dubbed "Hooverville."
Mitt Romney will avoid such a fate. There will be no "Romneyvilles."
If the economic trend unfolds in a way that EWI expects, Romney may eventually win, so to speak, by losing.
The debt in 1929 was a molehill compared to the mountain of debt that’s been created up into the highs of the past several years. The total amount of dollar-denominated credit as a percentage of annual GDP peaked in 1929 at about 210%, while recently it’s been as high as 370%. This is a lot more credit today relative to the country’s ability to pay it off. It’s an extremely dicey situation.
The Elliott Wave Theorist, October 2012
Find out just how fragile the nation's economy really is as you read EWI's Financial Forecast Service, risk-free for 30 days.
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