Front page of Yahoo finance....why??? Because of debt deficit on both side of Atlantic....QE $85B per month money should have been used to cut the deficit...instead....not pumping Wall Street....and congress leader???
i would say that's he's spot on with his theory ... the fly in the ointment is that ANYONE who tries to time
markets is a fool , the fact that he adds 2014 to his thesis , means his words are junk to me ......
Do you remember back in '06 ?? when Motley Fool would have articles about being prepared for the next
big crash ? they NEVER said when , matter of fact they said that it might be 20 or 30 years off, but iterated
without impunity , that it will come ... guess what ? it did come .. Fama's recession will come also , and moreover
tremendous inflation .. when ??? might not be until 2030 .... the real message should be that no matter what
the climate is , it is very prudent for all investors to be prepared as though a collapse is a the threshhold .
be a good Boy Scout ... BE PREPARED ... G
STOCKHOLM: One of the three Americans who won this year's Nobel prize for economics said bloated public deficits on both sides of the Atlantic meant that recession remained a real risk for 2014.
Eugene Fama, who shares this year's 8 million crown ($1.2 million) prize with Robert Shiller and Lars Peter Hansen, said on Saturday that highly indebted governments in the United States and Europe posed a constant threat to the global economy.
"There may come a point where the financial markets say none of their debt is credible anymore and they can't finance themselves," he told Reuters in the snow-covered Swedish capital, where he will receive his prize on Tuesday.
"If there is another recession, it is going to be worldwide."
Fama, who has been called the father of modern finance and shared the economics prize for research into market prices and asset bubbles, played down this week's strong US labour market data.
Richard Prector was also revered by many for his wave theory calls ... he was fortunate enough
to have made a few prescient calls , but after that , he's just been another talking head .
Theories are just that .. theories ,,, not to be ignore , but not to be blindly followed either .. garce