Fewer people say they have prospered over the last year than in decades according to a USA Today/Gallup Poll. Although the U.S. stock market has bounced back in the last couple of months, we shouldn't feel too good with property prices going down, jobs hard to find and unemployment continuing to rise.
Although many economists predict the recession will end this year, there is a good chance they will be surprised and puzzled when the stock market starts plummeting again as corporate dividends are cut---due to the collapse in earnings during this economic contraction which has out-stripped the rate for every preceding recession going back 100 years.
Why are the truly big economic catastrophes so "big"?
Put simply, it's that such a small number of people prepare themselves beforehand. Think about 2008 and you'll realize it's true. What's more, once you read Bob Prechter's recent 10-page Elliott Wave Theorist, you'll see that even fewer people will be ready for the soon-approaching worst leg down of the unfolding depression.
Efficient Market Hypothesis: True "Villain" of the Financial Crisis?
By Robert Folsom
Could a "theory" really produce a mess this large? Read More.
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