How To Prepare for a Crash
Not everyone cares to prepare for a financial environment that will be different from the current bullish one. Just as surely, most people don’t want to think about an economic recession. But recent follies in the credit and debt markets have turned some people’s minds to the strong possibility of a recession in the United States. For instance, here’s the lead from a recent story in the Financial Times, “The R-word Surfaces on Wall Street”:
The R-word is usually avoided by Wall Street’s economists. It tends to be a conversation-stopper when investment bank clients are told to prepare for the worst.
“It is like looking a client in the eye and telling them that their child is ugly,” says David Rosenberg, chief economist at Merrill Lynch. “It is not what people want to hear.” [Financial Times, Sept. 10, 2007]
If this is what people think about using the word, “recession,” just think how unwilling they are to talk about a depression. Well, Bob Prechter isn’t afraid to talk about a depression. In fact, he’s written a whole book about how to prepare for a deflationary depression, and now – while the stock market’s sun is shining, and people are making financial hay – now might be just the right time to read about how to prepare for a deflationary depression.
Excerpted from Conquer the Crash, You Can Survive and Prosper in a Deflationary Depression by Robert R. Prechter, Jr.
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