how markets were in 1987 and how they recovered.
Note that in 1987 we had a second bottom (some may have
called it the final leg) which was a bit higher than the initial one. Having
said this, it is possible that this time we have a second bottom which could a
bit lower than the 1st one. This would just scare hell out of everybody, turn
sentiment extremely negative and so enable for an upleg.
Again, what we have today CANNOT be compared to the situation of
the Great Depression
as at that
time we did NOT have Fiat Paper money as we have today. Add to this that
we also did NOT have all these uncontrolled
derivatives and credit default
swaps which are - I have no doubt about it - a great help in
manipulating the financial markets. Hence today's situation must be compared to
what is happening in Zimbabwe.
Depression: this is
how markets were advertised in and yet they still crashed. Today the sentiment
is rather the opposite. Most analysts fear a second down wave 'C' which is
supposed to take the World Stock markets a lot lower. This is not our opinion.
During the Great Depression,
Gold still played a role in the money supply. Many investors fail to remember
that at that time, we had a DEFLATION because
the authorities were limited in the amount of money they could create. Germany
did have a hyperinflation (Weimar revolution)
and the Mark crashed because at that time the Money supply was NOT limited by
Goldonomic, Florida, USA -