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 Supposedly, “Here Comes the Biggest Stock Market Crash in a Generation”

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Supposedly, “Here Comes the Biggest Stock Market Crash in a Generation” Vide
PostSubject: Supposedly, “Here Comes the Biggest Stock Market Crash in a Generation”   Supposedly, “Here Comes the Biggest Stock Market Crash in a Generation” Icon_minitimeThu Jan 14, 2016 6:44 pm

I’m not posting this because I think it’s going to happen, or not happen. I definitely don’t know.

It does, however, contain a remarkable level of doom for such a mainstream source.

What he’s saying is obvious and logical, which makes me wonder how applicable it is to this market.

Via: Fortune:

You don’t have to listen very hard to hear the bears growling on Wall Street, London, or Paris, these days. Indeed, the Dow Jones Industrial Average was down another 300 points on Wednesday to just under 16,200.

With the U.S. stock market sagging, oil off to its worst start ever, and the China’s economy continuing to deteriorate, bearish analysts have a wealth of evidence to point to.

And they don’t come much more bearish that Albert Edwards, strategist at Société Générale. He’s not had much nice to say about the global economy in years, and recent events have only hardened his convictions that the global economy is headed for disaster, and will take the prices of equities down with it. How much? Edwards predicts the stock market could plunge as much as 75%. That would be worse than during the financial crisis, in which stocks from their peak to trough dropped a brutal 62%.

In a research note published Wednesday, Edwards argued that ever since the last financial crisis, the global economy has been dependent on the Federal Reserve’s massive bond buying program to prop up equity prices and stimulate growth in emerging markets. “A commodity bubble and the resultant U.S. shale investment boom were all consequences of the Fed’s QE,” Edwards writes. Now that the Fed has stopped buying bonds and has actually moved to raise rates, the artificial growth in asset prices that we’ve seen since the last financial crisis will come undone, according to Edwards. “The illusion of of prosperity is shattered as boom now turns to bust,” he writes.

http://www.cryptogon.com/?p=48008
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