Tuesday, April 15, 2003

A SOBERING OPINION FOR TAX DAY Following a link from the Gnomedex website, I came across a sobering interview of Robert Prechter concerning his view of the future of our economy. In his latest book, Conquer the Crash: You Can Prosper and Survive the Coming Deflationary Depression , Prechter argues that the U.S. economy is entering into a deflationary depression, and that investors and businesses need to prepare. According to Prechter, American companies will suffer deeply in the coming years and, in a recent interview, tells dash30’s Allison Shirreffs about our wasteful economic lifestyle: dash30: So many people tend to spend more than they make. Prechter: They will not do that at the bottom and for decades after the bottom of the Depression, because it will be like our parents’ parents, children of the Depression.  They saved every penny, they pinched every penny, they knew the worth of money.  People today don’t, and it’s the ultimate psychological result of decades and decades of easy money and inflation through the credit mechanism, and also the belief that it’ll continue and that they’ll always have their jobs and always have the means to pay back the debt. Something to think about in these uncertain times. I'd have had a little more to save today if it wasn't for our uncle in Washington. File under Stuff That Don't Fit Anywhere Else 11:29:13 PM    Go ahead, make my day  []