Global Stock markets to fall 75%

Prediction AB: global stock market to fall 75% of its high (Oct 07). Currently the S&P is 50% off - meaning another 50% before we reach bottom

This is less than during the depression of the 30'-ies where the stock market dropped 89%. The main reason for the further drop is that the spill over effects to the real economy has only just started, plus the spill over in all other emerging markets.

The next stage will be the debt driven deflation cycle (Fisher) where monetary policy is rendered useless, once interest rates near 0% and consumers cut spending to reduce debt that increases due to deflation. There will be limited appetite for capital expenditure and consumption will be limited to necessities.