Crowd outside N.Y. Stock Exchange in October 1929

Graham Summers, senior market strategist at OmniSans Research, wrote in the firm's daily e-letter yesterday that the markets may finally be on the verge of the crash he has been predicting for more than two months.

"Well, judging from the market's action today, I believe we may be within 48 hours of getting the "Official Sell" signal I've been waiting for," he wrote in "Gain, Pains, and Capital."

Get "The Return of the Great Depression," autographed, at WND's Superstore

The Dow Jones Industrial Average lost 119 points yesterday, or 1.2 percent, while the NASDAQ lost 2.7 percent. The Russell 2000 index of smaller companies dropped 3.5 percent.

Summers explained in an online piece Tuesday that he has been watching an ominous pattern develop in which the trading range shrinks as stocks rise higher. In the past, that pattern has led to a sharp downturn, he said.

"I've been forewarning of a potential crash for months now. And the market's current action is precisely what you would expect for a major top (increased volatility)," Summers wrote.

Author and WND columnist Vox Day, asserts in book released last week, "The Return of the Great Depression," that the U.S. is entering the early stages of the Second Great Depression.

Day concludes an economic contraction of very large proportions is developing. But he contends that "due to a reactive wave of positive social mood, statistical obfuscation and understandable denial, it will take about a year for the consensus opinion to cycle through the various scenarios in descending order of optimism before the grim reality finally becomes apparent to even the casual observer."

Summers says the "issue now is whether this rally gives up this week, rolls over and breaks below the trend line or if there will be some greater push to the upside."

Roger Wiegand, editor of Trader Tracks newsletter, says "crash forecast reports are flying in from analysts."

"We see this stuff all the time, but the recent number of them with more strident and panicky tones does not bode well for these markets," he writes. "Our readers know where we stand and our professional analyst friends agree with us. It's only a matter of time."

Wiegand warns: "Headwinds are building into an economic hurricane."

Looking back at the crash of financial institutions last fall and the May recovery that began with passage of the TARP, the Troubled Asset Relief Program, he looks at this month as the end of a "dead cat bounce" as investors sell off stocks.

"We are at a turning point in most markets," he says.

Day's credibility as an economic forecaster is bolstered by his prediction seven years ago of the collapse of the housing market and the destruction of the financial services industry, in addition to some remarkably precise market forecasts.

In a Sept.23, 2002, WND column, he wrote:

There can be little doubt that the implosion of the equity markets will soon be followed by the pricking of the credit and real estate bubbles. As great financial houses such as Citigroup and JP Morgan Chase teeter on the edge of bankruptcy, it is well within the realm of possibility that the triple whammy of the equity, credit and real estate implosions will lead to the collapse of the entire global financial system.

Wow, that was scarey reading.  I sure hope that does not happen.  But a lot of it sounds very true.

The wind of change is in the air?

coast:

Wow, that was scarey reading.  I sure hope that does not happen.  But a lot of it sounds very true.

The wind of change is in the air?

That is so true.

SELL, SELL

Here is a totally different perspective, the opposite of yours, Magoo.

It will certainly be interesting to see who is on the right track.

When  the deficit begins to decrease and the economy improves considerably before the end of his term like the CBO and other economists have said that it will due to the policies outlined to offset what they consider is necessary spending right now made by the new administration I am going to be singing   I TOLD YOU SO  magoo at the top of my lungs, and posting it on here at least a dozen times everyday.  

. Government has to get more engaged and play a bigger role. This isn't a problem that can be worked out by the Fed and Treasury alone. It will take a major public mobilization, similar to preparing for a war. Federal money will have to be used to make up for lost state revenues. Government work programs will have to be created to rebuild critical infrastructure, expand green technologies, and modernize energy systems. At the same time, the administration will have to re-regulate the financial system, resolve or euthanize insolvent banks, and create a system of locally-controlled banks which function as public utilities to provide low interest loans to businesses and consumers.

All of this will cost trillions; trillions that won't be flushed down a black-hole on Wall Street or used as bonuses for shifty bank tycoons. In other words, money well spent.

Big government means big deficits, and the looming threat of capital flight. Will central banks and foreign investors grow wary of the deficits and ditch the dollar and US Treasuries? No way. The world is looking for leadership; for some indication that the US still knows how to shape its own future and clean up its own nest. They want to see the Obama administration "take charge" and fix the banking system, conduct criminal investigations, increase regulation, restore confidence in the markets, and rebuild the engine of global demand, the middle class.

This is a job for big government. Big government is back.

By Mike Whitney

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.

I see that nothing much has changed while i was away at Sabbatical. Magoo, you missed it__On September 15th 2008 this happened....... again

We literally came within hours of a national shutdown/breakdown, (not to mention a world-wide collapse) of the entire financial and banking system__no more ATM's, no borrowing, no abilitiy to move commerce. Sort of like the movie, "The Day  the Earth Stood Still, A 1951 black-and-white science fiction film that tells the story of a humanoid alien visitor who comes to Earth with a warning. The film starred Michael Rennie, There was a 2008 remake of the original film...which I thought was quite inferior, well except for the graphics.

Anyhow Mr Magoo, back to Sept of 2008. So where are the pictures and video from the run on the banks in 2008? There aren't any.

Everyone was too busy logging onto their computers and I-phones trying to liquidate. No more need to grab your pitch-fork and hobble down to your bank.

And finally for now a word to the loonies on the far-right.  Ben Franklin's one of many famous quotes.  "Any fool can criticize, condemn and complain and most fools do."

Carpe Diem!!

No, I don't think i'm wearing any teabags. Seems though that since that wonderful election of November 4, 2008__ you do recall the debacle of the GOP__ The right-wing has been in a perpetual state of emotional hysteria, disillusion, and basically cluelesss and lost in the wilderness. I mean really... everyday a whole bunch of  rabid right-wingers get together in front of the television and cry along with Glen Beckerhead. Need I go on

Carpe Diem!!

the iceman:

complaining again as usual seti?

Barbara ... This guy that you are counting on calls himself a Libertarian?  Goodness gracious!  He is anything but a libertarian with what he thinks will cure our economy.  Good luck, and I know you won't be saying "I TOLD YOU SO" anytime in the near or far future.  Got Gold?  LOL

Barbara Jones:

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.

Barbara Jones:

Here is a totally different perspective, the opposite of yours, Magoo.

It will certainly be interesting to see who is on the right track.

When  the deficit begins to decrease and the economy improves considerably before the end of his term like the CBO and other economists have said that it will due to the policies outlined to offset what they consider is necessary spending right now made by the new administration I am going to be singing   I TOLD YOU SO  magoo at the top of my lungs, and posting it on here at least a dozen times everyday.  

Seti03:

Ben Franklin's one of many famous quotes.  "Any fool can criticize, condemn and complain and most fools do."

Nobody is a fool, just Americans with different opinions.  That is the great thing about being Americans we are allowed to have different opinions and express them.

Magoo, there are a lot more than just Mike Whitney that expressed the same thing in all parties.  And there are a lot that go the other way also.

On the deficit decreasing everyone was just as skeptical with Clinton , but he did it.   A couple of president's have also despite major spending in the beginning if they came into office during a bad recession.

Major debt after the great depression that WAS paid down, albiet it did not last long, but the debt back then for those times was just as serious as it is now in comparison.

It really is not cut and dried either way, but I always have leaned towards the more optimistic views and I have not been disappointed yet, so I am betting on being the one to be able to say I told you so. 

Barbara,

I've tried to educate you on economics for too long for you to not understand, and you still don't get it.  Everybody who thinks debt/fiat money spending will improve the economy is dead wrong.  I know it.  I've studied economics for over 10 years, and in the end, we will all be poorer ... bankrupt ... for it.  It is inescapable, and the world elite are doing it on purpose with the aide of Obamasan, the Federal Reserve and the puppet masters in the MSM.  Go ahead and believe what you want, but you really should spend some time at mises.com or lewrockwelll.com

Barbara Jones:

 

Nobody is a fool, just Americans with different opinions.  That is the great thing about being Americans we are allowed to have different opinions and express them.

Magoo, there are a lot more than just Mike Whitney that expressed the same thing in all parties.  And there are a lot that go the other way also.

On the deficit decreasing everyone was just as skeptical with Clinton , but he did it.   A couple of president's have also despite major spending in the beginning if they came into office during a bad recession.

Major debt after the great depression that WAS paid down, albiet it did not last long, but the debt back then for those times was just as serious as it is now in comparison.

It really is not cut and dried either way, but I always have leaned towards the more optimistic views and I have not been disappointed yet, so I am betting on being the one to be able to say I told you so. 

Barbie dear this would all be so much easier if you would just put aside your intellectualism and common sense.  Allow your mind to got completely blank and believe in the power of Ronpaulianism. 

Googoo, the Ronpaulians are here and they've brought their own doobie this time.  Tell barbie you need a little time out and you'll be back later after you come back down.  I made your favorite brownies. 

xoxo HUGS xoxo 

I don't doubt that Magoo, history shows all empires fail eventually, I don't think the monetary system is always to blame either.

We are a long ways from failing though, and your arguement that the elite have deliberately planned it just doesn't make sense.

For the simple fact that most of the elite depend on the rest to sustain their wealth, they would have to have mush for brains to cut their own throats.

Actually a great many of the elite are philanthropists.  

You should really spend some time with other sources for your education, but I have heard it is quite common for those that are conspiracy theorist followers to be very selective in what they choose to believe.

I don't doubt for one second that there are conspiracies and manipulations of the people in this country from the wealthy and powerful, I know there are,  but the checkpoint for reality is how would it benefit them, or whether it would damage thier own wealth and power.

One thing to keep in mind is that there is not much glory and power over a country that is destitute and poverty ridden. and a whole lot less money is generated to keep the coffers filled for them, and another important consideration, that I am sure they keep in mind at all times is just how much their minions will take before revolting and turning on them.

 Something to think about that is a major contradiction also,  most conspiracy theorists are convinced there is no such thing as man have any effect whatsoever on the climate, and that it is just a natural cycle, but then the very same people are convinced that diseases are all manmade and deliberately designed to control population.

  I think there is a bit of both in both things.

Climate does evolve naturally in cycles, and  pollution can have an adverse effect on climate, although I seriously doubt that any changes man makes could reverse pollution drastically enough to have any major effects in just one decade or even one century. It has taken many centuries and much pollution to do damage, and it would take many centuries and drastic changes to have any significant impact on reducing that damage.

  Common diseases evolve naturally also, just like the climate does, however man also contributes to the mutations, and developments of resistance thru use of anti-biotics.  Man also takes common diseases and purposely experiments with them to develop them into forms that can be used as biological weapons to be used on enemies, not in ones own country, because there is not enough controll to do so effectively and safely.

  If there is one thing you can count on it is that the elite are not going to put their own lives at serious risk and vaccines and treatments are never 100% surefire, there will always be a few that have adverse reactions and there is no way to determine yet who those people will be ahead of time.

 These are my beliefs and that is what they will stay, unless I see evidence to the contrary that I can't argue with, and I haven't seen that yet, so don't try to force your beliefs on me, and I won't try to force mine on you.

Don't give me that educate on economics all superior crap, and I won't do that to you, or use the common sense all superior crap with you either.

You are happiest with what makes sense to you, and I am happiest with what makes sense to me.

If you can't debate these issues without feeling threatened and getting angry and frustrated the question that comes to my mind is WHY ? 

Saw charts comparing the VIX to the S&P 500.  They look like an exact match to OCT 2008.  I mean it is uncanny the way it looks. 

Barbara Jones:

I don't doubt that Magoo, history shows all empires fail eventually, I don't think the monetary system is always to blame either.  As usual Barbara, your lack of historical knowledge is glaring.

We are a long ways from failing though, and your arguement that the elite have deliberately planned it just doesn't make sense.  No, it makes perfect sense.

For the simple fact that most of the elite depend on the rest to sustain their wealth, they would have to have mush for brains to cut their own throats.  Barbara, the elite have enormous wealth ... more than your brain can comprehend, and they will be perfectly happy if 1/2 of the world died tomorrow ... so long as they don't go with them.

Actually a great many of the elite are philanthropists.  Blue smoke and mirrors.

You should really spend some time with other sources for your education, but I have heard it is quite common for those that are conspiracy theorist followers to be very selective in what they choose to believe. I don't believe in anything ... I know.

I don't doubt for one second that there are conspiracies and manipulations of the people in this country from the wealthy and powerful, I know there are,  but the checkpoint for reality is how would it benefit them, or whether it would damage thier own wealth and power.  As I said before, they don't care what happens to us.  They have all the power and wealth they will ever need ... reducing the population has been their goal for decades.

One thing to keep in mind is that there is not much glory and power over a country that is destitute and poverty ridden.  Au contraire, my friend.  It gives them complete control.  and a whole lot less money is generated to keep the coffers filled for them, and another important consideration, that I am sure they keep in mind at all times is just how much their minions will take before revolting and turning on them. That is something they have been battling for years, but once they get all their pieces of the game in place, they will not have to worry. 

 

 Something to think about that is a major contradiction also,  most conspiracy theorists are convinced there is no such thing as man have any effect whatsoever on the climate, and that it is just a natural cycle, but then the very same people are convinced that diseases are all manmade and deliberately designed to control population.Your point being?

  I think there is a bit of both in both things.

Climate does evolve naturally in cycles, and  pollution can have an adverse effect on climate Show me proof., although I seriously doubt that any changes man makes could reverse pollution drastically enough to have any major effects in just one decade or even one century. It has taken many centuries and much pollution to do damage, and it would take many centuries and drastic changes to have any significant impact on reducing that damage. It is the sun that controls the temperature on Earth.  You need to take global warming up with him.

  Common diseases evolve naturally also, just like the climate does  The climate does not evolve ... it simply changes in conjunction with the Sun, however man also contributes to the mutations, and developments of resistance thru use of anti-biotics.  OMG ... medically speaking ... antibiotics can only combate bacterial infections ... nothing else.  Common misconception.  Man also takes common diseases and purposely experiments with them to develop them into forms that can be used as biological weapons to be used on enemies, not in ones own country, because there is not enough controll to do so effectively and safely.  Sounds conspiratorial.

  If there is one thing you can count on it is that the elite are not going to put their own lives at serious risk and vaccines and treatments are never 100% surefire, there will always be a few that have adverse reactions and there is no way to determine yet who those people will be ahead of time.  Well AIDS can only be contracted by one means ... sharing of bodily fluids ... and they probably know better.

 These are my beliefs and that is what they will stay, unless I see evidence to the contrary that I can't argue with, and I haven't seen that yet, so don't try to force your beliefs on me, and I won't try to force mine on you. I'm not forcing you to do anything.  You just need to open your mind to other possibilities.

Don't give me that educate on economics all superior crap, and I won't do that to you, or use the common sense all superior crap with you either.  CRAP?  Gosh-all-mighty Barbara!  Economics is what makes the world go-round.  A lack of understanding of economics is why this country is circling the drain, and it has been done on purpose by the world elite.

You are happiest with what makes sense to you, and I am happiest with what makes sense to me.  No, what makes me happy is knowing I am right.

If you can't debate these issues without feeling threatened and getting angry and frustrated the question that comes to my mind is WHY ? What are you talking about?  How am I threatened?  By you?  LOL  I am frustrated because we have discussed these topics ad nauseam, and you just don't get it.  You like to come off as well educated, but are completely ignorant on the subjects of sound economic theory ... history ... philosopy ... politics ... the Constitution ... need I say more?  Get off your soap-box and read a book for crying out loud.

 

I have to agree with Magoo this time Barb...I've seen some Ron Paul supporters and have heard him speak several times. They all have blank minds also

MsMagoo:

Barbie dear this would all be so much easier if you would just put aside your intellectualism and common sense.  Allow your mind to got completely blank and believe in the power of Ronpaulianism. 

Googoo, the Ronpaulians are here and they've brought their own doobie this time.  Tell barbie you need a little time out and you'll be back later after you come back down.  I made your favorite brownies. 

xoxo HUGS xoxo 

LOL.  Seti03  I would definitely need my mind to go blank and probably have to stay blank. 

Let me see now,  the poverty level has DECREASED  from 20.8 % since 1950  to about half  10.6%  in the last census in 2006, along with a rise in subsistence level in poverty ranges.

Wealth has increased and standards of living have increased in America, despite the setbacks in 1983 to 2000 and in 2001 to 2004 due to some implementation of some of Magoo's preferred economics.

Yep, definitely have to have a really blank mind, or a very very closed mind to ignore those statistics.   Especially when you compare them with the rampant and abject poverty in some other countries that follow even more along the lines of Magoo's preferred economics. 

Ignorance is as ignorance does. 

 Nah, I think I prefer to keep my mind open to the real evidence, statistics, and examples that are right in front of our faces.

Sorry Magoo, you loose .

Barbara Jones:

LOL.  Seti03  I would definitely need my mind to go blank and probably have to stay blank.