Firstly, this item from that noted mouthpiece of the Vast Right Wing Conspiracy (VRWC)…the New York Times?

A Market Forecast That Says ‘Take Cover’

WITH the stock market lurching again, plenty of investors are nervous, and some are downright bearish. Then there’s Robert Prechter, the market forecaster and social theorist, who is in another league entirely.

Mr. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years.

In a series of phone conversations and e-mail exchanges last week, he said that no other forecaster was likely to accept his reasoning, which is based on his version of the Elliott Wave theory — a technical approach to market analysis that he embraces with evangelical fervor.

Originating in the writings of Ralph Nelson Elliott, an obscure accountant who found repetitive patterns, or “fractals,” in the stock market of the 1930s and ’40s, the theory suggests that an epic downswing is under way, Mr. Prechter said. But he argued that even skeptical investors should take his advice seriously.

“I’m saying: ‘Winter is coming. Buy a coat,’ ” he said. “Other people are advising people to stay naked. If I’m wrong, you’re not hurt. If they’re wrong, you’re dead. It’s pretty benign advice to opt for safety for a while.”

This article is really worth the read, and some thought. Even when they present an opponent to Prechter’s view…well…he sort of agrees too:

Over the next several years Mr. Acampora expects an “old normal market,” characterized by relatively short-lived swings that will provide many opportunities for smart investors — one that resembles the markets of the 1960s and 70s. “I’ve lived through it,” he said.

Like Mr. Prechter, he is a past president of the Market Technicians Association, the leading organization of technical market analysts, and he said that his colleague has done “some very good work.” But Mr. Acampora doesn’t agree with Mr. Prechter’s long-term theories, either intellectually or emotionally.

Hmmmm. Doesn’t agree with him EMOTIONALLY? WTF does THAT have to do with it?

The “mathematics don’t work,” Mr. Acampora said, because such a big decline would imply that individual stocks would need to trade at unrealistically low levels.

The logic here is very interesting. First, “The mathematics don’t work…” Why not? “BECAUSE such a big decline would imply that individual stocks would need to trade at unrealistically low levels.” (Like GM and GE, etc. trading for a few dollars a share in ’33?) Since when does the production of a mathematical result serve as the criteria to determine whether the mathematics “works”? He’s essentially stating that the math doesn’t work out because it gives an answer that he doesn’t like. This attitude is further amplified by the following statement:

Furthermore, he said, “I don’t want to agree with him, because if he’s right, we’ve basically got to go to the mountains with a gun and some soup cans, because it’s all over.”

Then he concludes:

“Still, on a “near-term” basis, he said, “We’re probably saying the same thing.”

Oops! Remember…THAT’s presented as an opposing view to Prechter!

At least the view from across the pond in the UK is better…right? Well, not exactly…it sounds more like the favorite observation of the robot character Marvin from Doug Adams’ Hitchhiker’s Guide to the Galaxy: “It’s all so depressing.”

With the US trapped in depression, this really is starting to feel like 1932

The US workforce shrank by 652,000 in June, one of the sharpest contractions ever. The rate of hourly earnings fell 0.1pc. Wages are flirting with deflation.

“The economy is still in the gravitational pull of the Great Recession,” said Robert Reich, former US labour secretary. “All the booster rockets for getting us “Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing,” he said.

Read on for more of the gory details. Maybe the robot has it right after all.