Jeffrey Gundlach of TCW Group:The worst is yet to come

[cal04]

'No market for old men,' TCW investment strategist warns in gloomy forecast
http://www.marketwatch.com/news/story/worst-yet-come-investment-strategist/story.aspx?guid=%7B55B21789%2D3A26%2D495A%2DB0D3%2D5AF3F6ABDA18%7D&dist=hplatest


An influential investment strategist has a dire forecast for U.S. stocks, credit markets and the continued independence of some of the nation's top financial institutions.

Jeffrey Gundlach, chief investment officer at Los Angeles-based mutual-fund company TCW Group Inc., told clients on a conference call late Wednesday that the crisis in credit and housing may not abate for several years and is actually getting worse.

In the deteriorating climate he sees unfolding, Gundlach said, the Standard & Poor's 500 Index (SPX:1,156.39, -57.21, -4.7%) could fall another 30%, giant Citigroup (C:, , ) could become an "AIG-sized debacle," Morgan Stanley (MS:, , ) would merge with a banking company, Wachovia (WB:, , ) won't be able to stand alone, default rates on even prime mortgages could soar, and European banks' woes are just beginning.

"This is no market for old men," said Gundlach, who also manages TCW's flagship Total Return Bond Fund (TGLMX:, , ) . "This is no market for old-school thinking."

Gundlach based his assessment on a belief that housing prices still face several more years of decline, a protracted slump, he said, not seen since the Great Depression. Moreover, Gundlach said it's possible that home prices could be sluggish until 2022.

[villager]

1. 2022!? By then I can quit renting, and buy a house to retire in!

Or rather, "barter for a house to retire in!"

[hunter]

4. Or just move in...

If I was a young man on my own I think I'd try that... Ask some real estate agent if they needed someone to keep an eye on the place.

[FrenchieCat]

2. "This is no market for old-school thinking."

I hear him!

[jwirr]

3. This mess is why they wanted to privatize Social Security to cover

up the meltdown. Thank God they did not get their way & lets hope that there is $$$ left in the account on Jan 20.

[madrchsod]

5. "old school thinking" compared to "new school thinking"?

well jeffie, what`s your answer?..............

[dixiegrrrrl]

6. I just figured out we don't have to pay anymore on our mortgage !!!!

:bounce: :bounce: :bounce: :bounce:


Happy Happy joyous and free.

why not,???? you ask.

Because, my dear Watson....

no one knows where the mortgage is, which of the collapsing companies has it.

( Anyone here with background to support this theory?????)

[azul]

7. This is a market for sea pirates and vulture capitalists.

The sovereign wealth funds and private equity groups look set to do quite well in this disaster capitalism opportunity striking shock and awe back home in the USA.

Just hope the chimp doesn't get a notion to declare martial law for a financial crisis and flummox the whole world financials, just to prevent facing justice if the votes can't be fixed in this election. Would they be so crazy?



Some take the bible
For what it's worth
When it says that the meek
Shall inherit the Earth
Well, I heard that some sheik
Has bought New Jersey last week
'N you suckers ain't gettin' nothin'
-F Zappa