On the Cuff...

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"Seemingly (credit) is a perpetual motion machine; but one day the lever will go into reverse, and the value of total credit will shrink as dollar prices collapse."
- Bob Prechter, The Elliott Wave Theorist, May 2007

As calls for Dow 14,000, Dow 15,000 and higher flood the media while any talk of credit inflation is tossed to the compost heap, it's increasingly evident – and not surprising – that there are few bears in sight. It couldn't be clearer that investor optimism abounds, setting astonishing records in recent months. Yet not once in history have the financial markets taken extreme credit inflation as a sign of anything but an impending deep and debilitating decline. There's something so obviously wrong with this picture.

In the May 2007 issue of The Elliott Wave Theorist, Bob Prechter talks about the ultimate affects of a credit society in a way that you won't hear from any other source. As one of Bob's most detailed Theorists on the financial markets, this is a must-read issue...