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Richard Russell Warns People Must Prepare For Something Worse Than 1929 – 1932 … Will U.S. Seize Gold?
by Eric King, King World News, via The Daily Coin.com:
As people continue to digest breaking news out of Greece and around the world, the Godfather of newsletter writers, 90-year-old Richard Russell, warned people to prepare for something worse than the global collapse of 1929 – 1932. Russell also answered the question: Will the U.S. seize gold?
Richard Russell: “Subscribers may remember that I thought the stock market would have a melt-up before it settled into a destructive bear market. It occurs to me that the chances of a melt-up are diminishing because the market is losing its upside momentum.
Prepare For Something Worse Than 1929 – 1932
My thinking is that the market is preparing for one of the worst bear markets in history, one that will out do the 1929-32 affair. My old friend, Robert Prechter, of Elliot Wave fame, believes the Dow will go below 400. If this happens I think there will be doubts about whether the US can survive.
It suddenly occurred to me that my job will be to insist that no matter where the Dow ends, the US will survive, just as it did during the Great Depression.
In reading the newspapers, I note that almost every article is negative. And at the same time, the state of the country is bearish. Even such stalwarts such as McDonalds and Wal-Mart are having a hard time. An article in the NY Times warns that Apple is fated to go the way of IBM.
As for the US economy, I think it will follow FDR’s recipe of make-work programs sponsored by the government. In the 1930’s, men working on government programs were paid $30 per month and most of that was sent home for the care of their wives and children.
I Was Happy Just To Have A Job In 1939
In 1939, I had a job loading trucks for the GW Button Company for $18.75 per week. The week included half a day on Saturday. Before that, I was working at the Postal Telegraph making 2-3 dollars per day. I never complained; I was happy to have a job.
As I write 45 minutes before the close, the Dow is down 25 and the sensitive Transports are down 70. The Nasdaq, having closed at a new high last week, is down 29. Gold is up 26.7 to 1201.7 and Silver is up 0.72 to 16.40.
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