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NEW YORK (Reuters) - Technical analyst Robert Prechter on Monday said he sees the United States losing its top AAA credit rating by the end of 2010, as he stuck by a deeply bearish outlook on the U.S. economy and stock market.
Prechter, known for predicting the 1987 stock market crash, joins a growing coterie of market heavyweights in forecasting the United States will lose its top credit rating as the government issues trillions of dollars in debt to fund efforts to bail out the economy.
Fears about the long-term vulnerability of the prized U.S. credit rating came to the fore after Standard & Poor's in May lowered its outlook on Britain, threatening the UK's top AAA rating. That move raised fears that the United States could face a similar risk, with the hefty amounts of government debt issued in both countries to pay for financial rescues causing budget deficits to swell.
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The economy "is obviously heading toward a depression," despite the government's efforts to dodge one, said Prechter.
Federal Reserve Chairman Ben Bernanke has not averted a re-run of the 1930s Great Depression, even though investors are becoming firmly convinced that the Fed has avoided disaster and that the economy has hit bottom.
"It's the next leg down (in stocks) that will make it clear that these things are not true," Prechter said.
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According to Martin Armstrongs 8.6 year cycles the next leg down began a couple weeks ago.
ReplyDeletebasically the cycles go up long then down short then up short then down short then up short then down long and then the cycle repeats.
April 23rd, 2009 marked the beginning of the down long leg of the cycle which won't end until
June 18th, 2011.
He is in prison because the government wanted his algorithms , apparently they work very well.
Look him up: Martin Armstrong
Yes I had a few long posts about him a few months back. Pay attention! lol Many ridiculed him on the comment section.
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