Indiadaily.com - Worldwide stock markets can decline more than 80% in the next twenty years as economies in US, India and China collapse

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Worldwide stock markets can decline more than 80% in the next twenty years as economies in US, India and China collapse - by Maria Guthrie

The liquidity drove these markets higher, the lack of it will drive these markets down too. The bulls came out with a trumpet and declared the correction of 3% in Dow is over. Let us analyze what is happening. Who are these analysts? These are people either working for big financial institutions or people with lots of inherited wealth? How can they ever be correct? They never even walk the main streets. The live and dream in the Wall Street. When they talk of global growth , they dream. A small business entrepreneur knows what it is to make it every day. The growth is dream when survival becomes a challenge.

A lot of liquidity was pumped in to support certain elements of the economy in the last ten years. The liquidity is now drying. The war, the deflation, the budget deficit, the trade deficit – all are responsible for liquidity drying up.

In China, India and the rest of the world, the liquidity is drying, deflation is taking the driver’s seat. Worldwide stock markets can decline more than 80% in the next twenty years as economies US, India and China collapse.