Economic Collapse

In November, 1999 in Market Crash ZetaTalk stated that Most stocks are inflated beyond their value, very few are not, and they can fall to 1/4 of their value before they settle with the public feeling they have some confidence in the stock and that it cannot be worth less, and again in January, 2001 in During 2001 ZetaTalk stated that Economic impacts would begin to bump into each other, one causing the other, so that the economic result is beyond a recession and threatening to become a worldwide depression. By July, 19, 2001 the reports of Indicators that a Global Recession was in process were rolling in. By 2002, reports of Panic in many countries and record Bankruptcies during 2001. During the May 4, 2002 Live ZetaTalk session, documented in 2002 Quickening, ZetaTalk stated How many Enron's are out there? ... There are dozens of Enrons, many with far worse accounting and broader impact. In fact, our prediction on a Stock Market collapse, wherein the value of today’s stock falls to 1/4 its current value, will be triggered in the main by revelations of this. Subsequent to this, Worldcom was exposed and by July 19, 2002 the Stock Market had begun collapsing. By March, 2003 CNN reported that the Nasdaq was at its highest in March 2000 at 5048, but had fallen to 1/4 of its value, and the BBC reported that France was at 1/3 of its value, Germany below the Great Depression era value. By the end of 2008, the media was talking about the current times as a Second Great Depression, which the facts bear out. On September 15, 2008 Wall Street crashed, with the DOW falling steadily thereafter. By March, 2009 the DOW was dropping down below 7,000 and predictions were that the DOW would drop to as low as 4,000 points, from a high of 14,000 points in 2001.

Dow 4,000 by Summer
March 6, 2009

Global trade and economic output are collapsing at rates that outpace the Depression of the 1930s. The Dow could fall to 4,000 by this summer unless there is a quantum reduction in mortgage interest rates, says Evans-Pritchard.

 

Europe Crashes
BBC, Mar 12, 2003

Earlier in the day, Paris stocks had plummeted to levels a little over one third what they were at their September 2000 peak. And Germany is now in the grips of a market downturn worse than it suffered in the Great Depression, calculations at investment bank Merrill Lynch have revealed. ... The fall in Germany's Dax index has seen it, for much of Wednesday, below the 2,200 mark which Merrill Lynch analysts believe marks the current bear market as worse than that of the 1930s' Great Depression.

 

Slump Felt Around the World
New York Times, 20-Aug-01

The world economy, which grew at a raging pace just last year, has slowed to a crawl as the United States, Europe, Japan and some major developing countries undergo a rare simultaneous slump. The latest economic statistics from around the globe show that many regional economic powers - Italy and Germany, Mexico and Brazil, Japan and Singapore - have become economically stagnant, defying expectations that growth in other countries would help compensate for the slowdown in the United States.

The $33 trillion world economy is still likely to expand this year, as it has every years since the Great Depression. Of the top economies, only Japan’s total output seems likely to shrink, and even bearish forecasters expect the world to grow at about a 2 percent rate, a bit faster than during international slumps in 1982 and 1991. Still, many experts say the world is experiencing economic whiplash, with growth rates retreating more quickly and in more of the leading economies than at any time since the oil shock of 1973. And this time there is no single factor to account for the wide-spread weakness, persuading some economists that recovery may be slow in coming. “We have gone from boom to bust faster than anytime since the oil shock,” said Stephen S. Roach, the chief economist of Morgan Stanley, a new York investment bank.

The biggest surprise is the sluggish performance in Europe, especially Germany, where leaders had until recently thought that they could escape the American slowdown. Germany’s economy, Europe’s largest, came to a standstill in the second quarter of this year. Italy and the Netherlands are showing practically no growth. And France’s relatively frothy economy has slowed sharply as both consumers and businesses have cut back spending. The result is that Europe, with a combined economy about as big as that of the United States, is in no position to take over as the locomotive of world economic growth.