Replies to post #287654 on Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

>Stocks set for crash like 1987, Roach says

No question about it. The dimensions of the coming fiscal crisis are staggering. Titanic trade deficit. A huge fiscal gap between tax receipts and expenditures. An unfunded social security program with huge requirements, it used to be 35 paid in for each 1, now its only 3 to 1! Living beyond our means on no means. As the collapse comes, like the hurricane in Florida, a boom will come on the subsequent base. As they say "the seeds of recession are sown in the excess of the boom, and the base of the boom is made on the rubble of the collapse"

[Joe Stocks]

>>>The 1987 crash was blamed on numerous factors including irrational behaviour and program trading.<<

Program trading averaged about 13% back then and most of it was arbitrage. It went up to 17% on that day. Comapre that to the over 50% that we see everyday now.