Jeremy Grantham Releases The Scariest Market Forecast Yet

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Mon, 12/05/2011 - 15:29 | 1947713 Mongo
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A.k.a flatline

Mon, 12/05/2011 - 15:39 | 1947771 idea_hamster
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I like the part of the projection that says:

* assuming 2.5% inflation

LMAO!  Good one!

Mon, 12/05/2011 - 17:14 | 1947778 sqz
sqz's picture

Shocking, but then I noticed the footprint:

* Assuming 2.5% inflation

With unlimited QE, EM growth and inelastic commodities, and inevitable long-term private debt creation policies, good luck with that! At most the foreceast scenario, based on historical real-estate post bubbles, can continue only up to 2014.

Mon, 12/05/2011 - 18:14 | 1948506 Comay Mierda
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this is what the general shape of the market will look like priced in GOLD! 2.5% inflation my ass, gold is the only true metric of inflation now


Mon, 12/05/2011 - 18:22 | 1948525 Comay Mierda
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btw, just received an update from

" Treasury Delays Release of Government’s GAAP-Based Financial Statements  Until Christmas Eve "

cant release this shit and cue more USAAA downgrades until after Consumermas

un-fucking-believable how much this government is full of shit


Mon, 12/05/2011 - 15:47 | 1947801 TruthInSunshine
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The movie is titled:

No Markets For Carbon Based, Non-Insider Information (Hank Paulson/Timmay tipped off) Fed Very Important Friends of the New York Branch of The Federal Reserve Bank

Also Released as:

The Bernank & Fractional Reserve Banking Alchemists Broke All Markets & Gave The Keys To The Printing Press to The Money Masters


The Bernank stars as Anton Chigurh, going around and shooting each and every market in the head with his air compressor gun.

Mon, 12/05/2011 - 15:51 | 1947823 CIABS
CIABS's picture

tyler: thanks for the downloadable pdf instead of a doc of the execrable scribd sort.

Mon, 12/05/2011 - 16:04 | 1947880 CIABS
CIABS's picture

regarding the content of the letter, i like grantham, but he needs to take a few more steps in the direction he has been going lately.  he ought to get beyond talking about "financial incompetence" and recognize it for what it is, and do the same with regard to the "appearance" we give of having become a plutocracy.

Mon, 12/05/2011 - 16:55 | 1948147 Ned Zeppelin
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OT, but is there a bad Cormac McCarthy novel? Suttree, the Border Trilogy, NCFOM, The Road. . . .  

Mon, 12/05/2011 - 17:02 | 1948185 akak
akak's picture

I have only read "The Road", but after having done so, I have to ask: is there a GOOD one?

My God, that book was one of the very WORST novels I have ever read!

Mon, 12/05/2011 - 17:28 | 1948288 CIABS
CIABS's picture

some think that Blood Meridian is the best.

Mon, 12/05/2011 - 18:17 | 1948517 Mr Lennon Hendrix
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The Road Less Traveled

Mon, 12/05/2011 - 18:31 | 1948577 Hobbleknee
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You mean, The Road Not Taken.

Mon, 12/05/2011 - 18:34 | 1948589 Mr Lennon Hendrix
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I mean,

The Yellow Brick Road

Mon, 12/05/2011 - 18:55 | 1948684 Al Gorerhythm
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Agreed. Taking the advice of a ZH member, some time ago, I watched the movie. It was the most morbid movie I'd seen and decided if it ever descends to that, I'll take the wife's option.

Mon, 12/05/2011 - 19:06 | 1948721 akak
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Aside from the morbidly depressing theme, or even regardless of it, I found the book to be mind-numbingly tedious and achingly painful to read, with no background or explanation for the supposed all-consuming catastrophe that engulfed the world, catatonic characters speaking in monosyllabic babytalk, and highly implausible scenarios of relatively plentiful cannibals, years after the unrevealed disaster, living off of other humans living off of ... what?  The entire book was an insult to the intelligence.  Rarely have I read a book that I was so glad to finally finish --- and yet so disgusted that I had wasted the time to do so.

Tue, 12/06/2011 - 02:04 | 1949960 Heyoka Bianco
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The Road sucked. Easily his worst book, so of course Oprah chose it for her list. We can only hope that some hapless hausfraus picked up Outer Dark or Blood Meridian and are still in catatonic states after the first pages. Maybe one of them even made it as far as the tree of dead babies. Dare to dream, eh? Eh?


All progressions from a higher to a lower order are marked by ruins and mystery and a residue of nameless rage.

Mon, 12/05/2011 - 15:55 | 1947822 vast-dom
vast-dom's picture

It looks pretty optimistic to me! Seriously! And that SP chart needs to be shifted back-- oh wait-- maybe not-- but my 850 calcs said Sept into Oct of this year.........fuck me this looks peachy fucking keen relative to actual as in real world FUNduhMenTaLs.


I'm a buy and hold short investor when it comes to the indices ;)

Mon, 12/05/2011 - 15:31 | 1947731 Stack Trace
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My hair just grayed.

Mon, 12/05/2011 - 18:38 | 1948609 vast-dom
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ME balls just swelled.

Mon, 12/05/2011 - 15:31 | 1947732 Golden Boy
Golden Boy's picture

Sorry, not gonna happen. Those cock suckers are gonna print plastic coins if they have to.

Mon, 12/05/2011 - 15:37 | 1947765 pvzh
pvzh's picture

Hopefully, not in trillion-dollar denominations.

Mon, 12/05/2011 - 18:26 | 1948556 bank guy in Brussels
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But Gideon Gono, head of the Zimbabwe Central Bank, printed up notes of 100 trillion Zimbabwe dollars ... they finally gave up and started using foreign currency ... and Gono still has his job. And I saw stories where you still get a trillion old Zim dollars as small change on the bus.

All other Central Bankers have taken note of Gono's career triumph. 'Print for Success'.

Or as Jim Sinclair keeps repeating, 'QE to infinity ... the one tool in the toolbox ..."

Mon, 12/05/2011 - 15:40 | 1947774 SheepDog-One
SheepDog-One's picture

You miss the point, this is NOT about keeping things going however they can, this banking system is over and theyre going to 1 world central bank next, will happen during 2012 first half. 

All this 'Wow no one ever saw this coming' is just cover for the planned collapse of the western world banking system, no question about it at all.

Mon, 12/05/2011 - 15:47 | 1947809 Golden Boy
Golden Boy's picture

And leave the useless boys and girls at Goldman sucking wind? Not gonna happen. Power will remain shared. We will have ww3 before the nwo comes anyway.

Mon, 12/05/2011 - 18:49 | 1948503 Woodyg
Woodyg's picture

Goldman figures to be the last man standing as they say. And you have to admit that they have been quite successful lately placing 2 into positions of power in italy and greece.

So far the score this year seems to be:
Central Banksters 6
democracy 1

Mon, 12/05/2011 - 20:15 | 1948915 SheepDog-One
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LOL, who do you think is at the center of the world bank?

Mon, 12/05/2011 - 15:48 | 1947813 john39
john39's picture

correct, and they will use the crisis to herd the masses into begging for the new planned system. 

Mon, 12/05/2011 - 15:55 | 1947847 MonsterBox
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SD1, i hope you're wrong. 

i only just reluctantly accepted the "print, print, print" abomination, with the hope they can kick the can for another 4-5 years....

Mon, 12/05/2011 - 16:10 | 1947905 eurusdog
eurusdog's picture

NWO won't happen until the whole shit pile is in flames. To many people with to much money will be fighting to get on top. NWO assumes dispirit parties can agree. AS an example, see the EZ. That seems to be working supremely in Europe right now.

Mon, 12/05/2011 - 16:57 | 1948154 Financial_Guard...
Financial_Guardian_Angel's picture

I agree. No NWO yet. The two asshats in France and Germany can barely agree on what to serve for lunch at their meetings, let alone get all the power hungry dictators and world "leaders" to agree to share power.

NWO comes after this all blows up and there are only a few left standing. They will fight with every last loyal subject they can throw at each other before they share nicely with the other children.

Tue, 12/06/2011 - 02:02 | 1949954 TruthInSunshine
TruthInSunshine's picture

The NWO is already actively planning things, in closed door meetings, which is why no journalists are allowed in.

It's a big, open secret, and it's called Bilderberg.

But that's just crazy, conspiracy-fueled conjecture....I know...(/sarc)

Mon, 12/05/2011 - 17:32 | 1948306 LawsofPhysics
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Have you been paying attention?  We have had a one world government since the creation of the Federal Reserve, when all the Americans becames tenants on the property they owned outright.  Debt-slaves to an international banking cartel that has put America's army and tax dollars to work for their own objectives around the world via the U.N., the I.M.F. and N.A.T.O.


Wake up!  The NWO and their offspring have been running things around the world for a solid 100 years. 

Mon, 12/05/2011 - 18:21 | 1948534 Woodyg
Woodyg's picture

It'll be a NWO with the appearance of a democracy led behind the scenes by an all-powerful central banking predator vampire.

Oh s*#t i guess we're already there.

Mon, 12/05/2011 - 20:16 | 1948920 SheepDog-One
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'Until the whole shit pile is in flames'....which just as likely as any other date may be tomorrow.

Mon, 12/05/2011 - 15:59 | 1947863 Freddie
Freddie's picture

Hope & Change with the muslim and Nancy Pelosi.

Mon, 12/05/2011 - 16:24 | 1947991 Loose-Tools
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I heard on FOX News that Obama had Gay Sex with an Islamic Terrorist after speaking at a Convention for Unionized Abortionists.

Mon, 12/05/2011 - 16:52 | 1948114 Calmyourself
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An Islamic terrorist you say..  Huh, I heard it was a goat, also heard Bammy was mumbling betwwen grunt something resembling "Oh Reggie, I miss you so much" and "some animals are more equal than others", no?  Anyhow, nice avatar, pic of you in mom's basement I assume?

Mon, 12/05/2011 - 16:59 | 1948174 Loose-Tools
Loose-Tools's picture

No, that's me in the Dial-Up Internet Room at the Asylum. (har, har!) All I have to do is fart and I get the whole room to myself.

Mon, 12/05/2011 - 18:32 | 1948580 Iwanttoknow
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How many are posting from Mossad central?

Mon, 12/05/2011 - 18:42 | 1948626 Iwanttoknow
Iwanttoknow's picture

No one is an Obama supporter.Obama is acontinuation of Bush.It is extremely unlikely that Obama is a musliam, not that it matters.He is a fascist and facilitator of the .01%.Where do you get your info,the local southern baptist priest?

Mon, 12/05/2011 - 18:14 | 1948504 Johnny Yuma
Johnny Yuma's picture

Although your comment is hilarious, it won't hold true. Take a look at every country over time that attempted to print their way out of trouble. The best most recent example would be Zimbabwe. Their stock market was going straight up but eventually inflation choked them out. That too would and is happening with the U.S. A lower price target of the 800 area may be opptimistic and we could easily get into the 500's which would test the great bull trend line. 

Mon, 12/05/2011 - 15:55 | 1947742 Mercury
Mercury's picture

Young Man Blues indeed.


But I have news for you Jeremy - every human society that has ever existed on has been a plutocracy, including this one.

And when you start bellyaching about our "mean-spirited" Supreme Court majority and global warming it makes me nervous.  Tell us you don't really believe that experts should rule the world and I'll feel better.

Mon, 12/05/2011 - 15:33 | 1947743 BigMike
BigMike's picture

long HUI

Mon, 12/05/2011 - 15:33 | 1947747 lolmao500
lolmao500's picture

Print print print!

Mon, 12/05/2011 - 15:34 | 1947749 wandstrasse
wandstrasse's picture

nowadays any projection which looks further than 5 minutes in the future is ridiculous.

Mon, 12/05/2011 - 15:41 | 1947781 SheepDog-One
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Even this chart is ridiculous...its wavers around year after year to end back where we are now in 10 years? Ridiculous, it means nothing.

Mon, 12/05/2011 - 15:35 | 1947755 Sudden Debt
Sudden Debt's picture

I don't really expect rosy forecasts here, only logic once.

Mon, 12/05/2011 - 15:35 | 1947756 Carlyle Groupie
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When ZH comes out with stuff like this, it's a good time to buy the S&P big with both fists.


Mon, 12/05/2011 - 15:38 | 1947769 Everybodys All ...
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Let me know when it's time to sell then.

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