Content By: The Coming Depression Editorial Staff (dates cited below)
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Former IMF chief economist, Simon Johnson said, the “financial industry has effectively captured our government and is blocking essential reform.”

What the hell is with the “it does not affect me, so why should I care” mentality? With the devaluation of the dollar and the printing of new currency made by the Obama administration, 3.5 million will be soon minimum monthly wage, and a loaf of bread will be $ 100,000. Will you care then?

Simply because certain people are not affected by a specific monetary issue, why should they be silent? It’s not as if the government takes money from the rich to give to the poor. Most of the money is spent for the sake of government and on flying fatcat senators to Europe and other pleasant places for their meetings in addition to interest on the national debt rising to over 12 billion dollars.

Also, just because we have the “Paris Hiltons” of the world, it automatically means that all the rich kids can not run a business? Bill Gates was not at all a poor kid, and somehow he managed to create and manage a small company, we’ve all heard that for better or worse changed the world. In other words, leave the money to those who earned it.

Economists warn: Another great depression is likely
January 5, 2:22 PMPolitical Spin Examiner Maryann Tobin

It is being dubbed as the Great Depression 2 and all fingers are pointing toward Wall Street as the ultimate culprit of our impending total meltdown.

Former IMF chief economist, Simon Johnson said, the “financial industry has effectively captured our government and is blocking essential reform.”

He adds that if we cannot break its suffocating grip on Washington, we will not be able to stop the Great Depression 2.

Johnson is not alone in his prediction. Phrases like; “capitalism-without-morals” are being recited by other economic guru’s who are frustrated by what they see as imminent. Columbia University Professor and Nobel Prize economist, Joseph Stiglitz, is among them. Stiglitz said, “the financial sector will only try to circumvent whatever new regulations we put in place. We will simply have a short respite before the next crisis.”

What we are experiencing now is only a small taste of what is on the horizon, and it is only the arrogance of the American attitude that prevents so many from seeing it. The United States is not above the greater cycle of history. Powerful empires have fallen in the past: the former Soviet Union for one. It is the destruction of wealth at its worst, driven by corruption and greed.

The quintessential get rich quick scheme fueled by the ever-growing virus of debt is destined to over take us.

Full story provided at Examiner

A disastrous ten years for the stock market ends in just a month. Will the turning of a new decade change investors’ luck?

One sentence from the story itself tells you most of what you need to know: “The ten years since Y2K are on track to produce the worst total returns for investors since the 1930s.”

Of course, no one should really be surprised by a story that says the stock indexes did poorly over the past decade. That’s not news. The facts in the article more or less repeat what our own Elliott Wave Financial Forecast reported last March.

It’s safe to say that this business magazine article is the first of many the media will run before the year’s end, as part of their “decade wrap-up” stories. And like this story, most or all those like will share the same basic assumption: stock investors did poorly because the stock indexes did poorly.

And that assumption, dear reader, is erroneous. The truth is far uglier.

Here’s what we mean. If you want to know how real stock investors really behave, the major stock indexes are the wrong place to look. Published results from firms like Dalbar and Vanguard consistently show that, over the past 25 years, individual investors and mutual fund shareholders have had average returns that are half (at best) of the annual returns of the broader stock market.

If You Think the Past Decade Was Bad For Stocks, Wait Till You See This
The major stock indexes are the wrong place to look

The shorter formats are ideal for you affiliates that may not have room for a full article, but do provide links for third-party content.

* Title & byline only
* Title, byline, and short description
* Full article

Option 1: Title and byline
If You Think the Past Decade Was Bad For Stocks, Wait Till You See This
The major stock indexes are the wrong place to look
By Robert Folsom

Option 2: Title, byline, and very short description

If You Think the Past Decade Was Bad For Stocks, Wait Till You See This
The major stock indexes are the wrong place to look
By Robert Folsom
These stories share the same basic assumption: stock investors did poorly because the stock indexes did poorly. And that assumption, dear reader, is erroneous. The truth is far uglier… Read More

Option 3: Full Article
If You Think the Past Decade Was Bad For Stocks, Wait Till You See This
The major stock indexes are the wrong place to look
December 4, 2009
By Robert Folsom

A well-known business magazine recently published a story with this headline:

Stocks: The “Loss” Decade
A disastrous ten years for the stock market ends in just a month. Will the turning of a new decade change investors’ luck?

One sentence from the story itself tells you most of what you need to know: “The ten years since Y2K are on track to produce the worst total returns for investors since the 1930s.”

Of course, no one should really be surprised by a story that says the stock indexes did poorly over the past decade. That’s not news. The facts in the article more or less repeat what our own Elliott Wave Financial Forecast reported last March, complete with this chart:

The proof of the market is in its charts. Professional market technicians know something you don’t. A solid grasp of the most successful technical analysis methods can help you cut through the hype and give you the big-picture, unbiased perspective you need now more than ever. You can now download a FREE 50-page Technical Analysis Handbook from the largest independent technical analysis provider in the world. Learn more about technical analysis, and download your free 50-page ebook here.

S&P Chart

It’s safe to say that this business magazine article is the first of many the media will run before the year’s end, as part of their “decade wrap-up” stories. And like this story, most or all those like will share the same basic assumption: stock investors did poorly because the stock indexes did poorly.

And that assumption, dear reader, is erroneous. The truth is far uglier.

Here’s what I mean. If you want to know how real stock investors really behave, the major stock indexes are the wrong place to look. Published results from firms like Dalbar and Vanguard consistently show that, over the past 25 years, individual investors and mutual fund shareholders have had average returns that are half (at best) of the annual returns of the broader stock market.

So, for example, in 20 years from Jan. 1, 1989 through Dec. 31, 2008, the S&P 500 showed a 8.35% gain (Dalbar). Over that same period, equity investors showed a 1.87% gain. And if you include the 2.89% inflation rate in those years, investors show a 1.02% loss.

You can shift to a timeframe which excludes the bear market that started in 2007, but it doesn’t change the basic story. From January 1984 though December 2002, the Dalbar data shows that equity investors earned an annual average of 2.6%, vs. the S&P 500’s 12.2% annual average. The annual inflation rate for period was 3.14%.

What’s more, similar studies and surveys also show that most investors are overconfident in the decisions they make. Put another way, they don’t even know that they are their own worst enemy.

It can be different for you. Market prices move in recognizable patterns: Those patterns can also reveal specific price levels that help confirm the direction of the trend, or identify the time to step aside. Respecting the price, pattern and trend is the first step toward discipline, instead of yielding to emotions.

The proof of the market is in its charts. Professional market technicians know something you don’t. A solid grasp of the most successful technical analysis methods can help you cut through the hype and give you the big-picture, unbiased perspective you need now more than ever. You can now download a FREE 50-page Technical Analysis Handbook from the largest independent technical analysis provider in the world. Learn more about technical analysis, and download your free 50-page ebook here.

Robert Folsom is a financial writer and editor for Elliott Wave International. He has covered politics, popular culture, economics and the financial markets for two decades, via print, radio and the Internet. Robert earned his degree in political science from Columbia University in 1985.

This entry was posted on Sunday, January 10th, 2010 at 11:43 am and is filed under All Posts, Survival Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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