Granville Says Market Is `in a Crash;' Stovall Says `Contagion' May Spread

[marmar]

from Bloomberg:



Stock Market Veterans Granville, Stovall Predict More Losses

By Elizabeth Stanton and Jeff Kearns

March 17 (Bloomberg) -- Joseph Granville and Robert Stovall, octogenarians who've seen every financial market downturn since the 1950s, say the current one may be the worst and is far from over.

Granville, born in 1923, remembers his banker father's bad moods following the stock-market crash of 1929. The younger Granville began his career at defunct brokerage E.F. Hutton in 1957, quit in 1963 to begin publishing a weekly newsletter and wrote nine books on investing.

``We're in a crash,'' Granville, 84, said in a telephone interview from Kansas City, Missouri, where he lives and works. ``This is the worst I've seen, and I've studied every bit of history all my life.''

U.S. stocks plunged to the lowest since August 2006 today after JPMorgan Chase & Co.'s purchase of Bear Stearns Cos. for less than a 10th of its market value sent financial shares falling around the world. The Standard & Poor's 500 Index neared a so-called bear market drop of 20 percent from its Oct. 9 record.

Bear Stearns, the fifth-largest securities firm and once the biggest underwriter of U.S. mortgage bonds, collapsed as the residential real-estate slump led to bank losses approaching $200 billion globally. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aMVeMY2hvYUI&refer=home

[bicentennial_baby]

1. Well that's certainly encouraging

x(

[ayeshahaqqiqa]

2. buddy, can you spare a dime?

One minted before 1965--only interested in silver, ya know.

[cloudbase]

3. Do CEOs learn this stuff in B school

or do they manage to figure it out on their own?

[enid602]

4. market

It's not just a bear market; it's a 'Bear Stearns' market.

[Warpy]

5. The fall will be in slow motion

if it happens. It was in 1929. The big one day drop wasn't the problem. The one step up, two steps down drop over the next three years was the problem.

The good news is that there are far fewer margin buyers to shake out this time so a 90% drop is unlikely.

[masmdu]

6. Granville is OFTEN VERY WRONG...his track record is here

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6988BF9A%2D2ADD%2D48F4%2D85CD%2D8D2EC49EC3ED%7D&dist=morenews¶m=archive&siteid=mktw&garden=&minisite=