On the Verge of Depression
"In 2008, Americans will wake up to the worst economic times that anyone alive has ever seen. And they won't know what hit them." --Gerald Celente, 17 December 2007
As Predicted, Economic 9/11 Hits Wall Street:
Depression Next, Trend Seer Says
RHINEBECK, NY 18 September 2008 -- In 2007, Trend forecaster Gerald Celente predicted that an "Economic 9/11" would hit Wall Street in 2008.* As the world knows, on 9/15 it did.The financial world is in free fall and very few saw it coming. As the The New York Times wrote, "A year into the financial crisis, few dreamed that the situation would spiral down, so far, so fast." (NYT, 15 September 2008.)
Even now, in the midst of the chaos, Wall Street, Washington and the media, are in damage control mode, still unwilling to acknowledge the dire implications of the acknowledged facts.
According to Celente, the worst is yet to come, and it's going to go global. He said, that the old adage, 'when America sneezes the rest of the world catches pneumonia,' holds truer than the newly minted "de-coupling" theory that global growth can be sustained absent a strong US marketplace.
"Equity markets worldwide have collapsed and there is nothing in place that will support them," said Celente. "Lehman Brothers was the biggest bankruptcy in United States history and it won't be the last. There will be many more 'too big to fails' and there won't be enough money to bail them all out. First it was Bear Stearns; then it was Freddie Mac and Fannie Mae, A.I.G.; tomorrow there will be others," said Celente, Director of the Trends Research Institute.
"And the failures will extend beyond the financial sector," he predicted. "In the coming weeks, months and years, we'll see a steady stream of banks, giant retailers, consumer product companies, manufacturers, leveraged buyout firms and home builders going under. The next economic shoe to drop will be in the commercial real estate sector," he said.
Asked how he was able to see what others could not, Celente marveled, "How could they not have seen it coming? Virtually every day since July 24, 2007, when the Dow took a 226 point dive, we've been bombarded with a steady stream of dire economic news and depressing data."When asked if the stock market has now bottomed, Celente said "don't ask me, ask Cramer." The CNBC Mad Money guru, Jim Cramer, asserted on July 29 that the market bottomed from "the panicked lows it hit on July 15."
"It's black comedy," said Celente, "I don't know whose bottom he was talking about. Even now, when you turn on the business news, the "experts" who didn't see the panic coming are still telling us the market has 'capitulated' and a 'bottom' is being formed."But I wouldn't be surprised if the Dow sinks to 8,000. When you add up the data it equals Depression," said Celente, who also accurately predicted the 1987 stock market crash, the Asian currency crisis, the last two recessions and the dot.com bust, to name a few of his major calls.
"...Despite the hard evidence and loud warning bells, many people are still in denial. They hear what they want and hope against hope. Conventional wisdom holds that the financial turbulence will pass and the long-term fundamentals are sound. They are not. Empire America is collapsing and neither the Fed, Congress, the President nor the Presidents-in-waiting will be able to do anything substantive to reverse the course."