Homestead mailing list

[bob ford <bobford79 AT yahoo.com>]

Generational Dynamics has a big following.  This is the opposite of the Peter 
Schiff type "inflationary" picture of the near future....

-------------------------------------------------------------------------

Generational Dynamics Web Log for 27-Oct-2008
--------------------------------------------------------------------------------

 What's coming next: Understanding the deflationary spiral


Excerpt:

"What's coming next:

The implosion of the euro is just one part of the massive event that's about 
to occur. This is the "generational panic and crash," the first since 1929, 
and now apparently very close. 

Here's how I've described it several times in the past: 


"A generational crash is an elemental force of nature, like a tsunami. 

You'll have millions or even tens of millions of Boomers and Generation-Xers 
in countries around the world, never having seen anything like this before, 
not even believing it was possible, and in a state of total mass panic, 
trying to sell all at once. Computer systems will crash or will be clogged 
for hours, or perhaps even for a day or two. People who had hoped to get out 
just as the collapse is occurring will be totally screwed, and will lose 
everything. Brokers and other institutions will go bankrupt."


In the article I wrote about this last week, I quoted Nouriel Roubini, who is 
expecting officials to have to shut down markets for a week or two, and I 
quoted Art Cashin, who is expecting a "dramatic climax" within the next few 
days. 

Cashin works for UBS AG as a floor manager, one of the old-timers on the New 
York Stock Exchange floor. He probably talks to hundreds of people a day, and 
reaches conclusions based on those conversations. What he's sensing is that 
something very big is coming. I heard him again when he was being interviewed 
late Friday, and he said that he's expecting "something major, something that 
will be remembered for generations." 

>From the point of view of Generational Dynamics, here's what to expect for 
>the near future: 


** A massive "generational panic and crash," such as has already been 
described. 


**A continuing fall in the stock market and other markets for several years, 
probably reaching as low as Dow 1500-2000. 


**A deflationary spiral that will make many goods much cheaper -- since few 
people will be able to afford to buy them at any price. 


**A substantial increase in bankruptcies, foreclosures, homelessness and 
starvation around the world, including the US. 


**Increased restlessness among starving populations around the world, leading 
to a breakdown of civil order in many places, followed by the path to world 
war.


http://www.generationaldynamics.com/cgi-bin/D.PL?xct=gd.e081027