Think the Economy's Bad? 'You Haven't Seen Anything'

[OhioChick]

Published: Monday, 3 Oct 2011 | 1:00 PM ET

Market pessimism is reaching a fever pitch, fueled by increasing belief that global policymakers either are powerless or inept when it comes to controlling the various headwinds confronting the economy.

With a bloody third quarter coming to an end and hopes that the final three months of the year will live up to their reputation as the market's best, now might be the time when confidence would be on an upswing.

But some of the market's top thinkers are releasing a chorus of dour predictions that, while allowing for the chance of a mild rally as 2011 closes, otherwise believe there is little reason for hope.

Bob Janjuah, the notably bearish fixed income analyst for Nomura Securities, believes that a market low is coming in October that could be followed by a late-year rise. But 2012 holds little but a bear-market roar that could take the Standard & Poor's 500 <.SPX 1106.39 -25.03 (-2.21%) > all the way down to the 700 range—a numbing 38 percent drop from current levels.

More: http://www.cnbc.com/id/44757716

[ChandlerJr]

1. October is the month for it

Oct 28 1929 the 1st "Black Monday" kicking off the great depression. The market did not return to pre-1929 levels until 1954!

Oct 19 1987 "Black Monday" 2.0. Dow drops almost 23%, largest one day drop in history.

Both markets were marked by weeks of wild swings prior to the collapses.

Sound familiar?