Inside Bob Prechter's December 2008 Elliott Wave Theorist ...

Prechter on Real Estate,

Stocks and Commodities

NOTE: This December 2008 issue of The Elliott Wave Theorist is available to subscribers only.

When the history books finally pinpoint the “cause” of the financial meltdown, they’ll likely begin with the U.S. real estate bubble. It busted in 2005 and sprayed toxic bullets of bad debt into markets and economies around the world. If a financial crime scene investigator wrote up a summary report, it might read like this:

“We’ve identified the shooter as the U.S. real estate industry. Strong anecdotal evidence suggests it was the leader of the gang of deflators, while forensic evidence confirms that bullets from the scene came from the infamous exploding debt gun. It all points to the real estate industry as the perpetrator.”

Scenarios like that aren't so far-fetched, if you accept the logic of “cause-and-effect” arguments. And make no mistake: We do live in a world where cause and effect is THE conventional explanation. That's why we take every opportunity to present the facts and evidence to the contrary – namely, that extremes in investor psychology are the true cause of inflating and deflating asset bubbles. That includes the real estate industry’s bubble.

One such opportunity came on Dec. 10, 2008: Robert Prechter accepted an invitation to present his outlook on the real estate industry to the Joint House and Senate Economic Committee of the Georgia legislature at the state Capitol.

Bob was one of 11 individuals who had 30 minutes to speak; he acknowledged that while his views and legislative suggestions are not typically discussed, the time we're living through is anything but "typical":

“We are in this very unusual period in history. About once a century are we in a situation like this. Who in 1928 thought that all of the New Deal programs were going to be anything close to what would be reality? And yet, five or six years later, those were the programs that were being passed. Who in the early 70s thought that the Reagan economic revolution would come about? Almost no one. Anybody proposing these sorts of things would be thrown out. But after three or four or five years of very difficult times, people begin to discuss radical solutions. And I think it’s a good idea to plant some of those seeds early, because the states that move early are going to be the ones that succeed the best...”

In his December issue of the Elliott Wave Theorist, Bob Prechter delivers the transcript and charts from his presentation to the Georgia state legislature. Bob also includes an enhanced video version of his presentation, plus a link to the complete and unedited presentations from the 10 other speakers.

Here's what this issue includes:

• 14 charts and figures important enough to share with the Georgia Congress.
• The telling chart about mortgage delinquency.
• Bob’s list of four "bad" legislative ideas.
• And Bob’s list of five good legislative ideas.
• Plus, insights into what concerned citizens might look for in a desirable state in which to live during this economic crisis.

This December Elliott Wave Theorist is an incredible, can’t-miss issue. Subscribe now for instant access.

When you start your risk-free subscription to The Elliott Wave Theorist now, you’ll also get instant online access to Bob’s still-prescient July Video Theorist as well as his October and November Theorists.

Together, these issues (available free to subscribers) provide EWI’s long-term outlook, explain where U.S. markets have been and where they’re heading next, update EWI's deflationary forecast and tell you how to steer clear of toxic, debt-laden assets.