How the 1987 crash brought us back to the 1800s

The next crash will occur once global oil production finally peaks and fall of its "supply cliff" (circa 2010).Here the decline will be in excess of 9% annually. This shortfall will trigger hyperinflation and physical shortages of oil and oil derived products.
The next stock market crash that follows will trigger The Second Great Depression. The effects of this will result in severe economic, social and demographic shifts as the world's economy collapses, along with the oil shortages.
What we have seen recently was nothing more than a preview of things to come. Soon rising gasoline prices will cause transport costs to exceed suburban mortage repayments on normal prime mortages, and in turn-devalue suburban real estate. When this "warning sign" hits, then everyone will know that "The Big D" is on its way.

I would agree with the effects described by J Smart, just not sure with regard to the timing. In any event I don't believe that the "Big D" is going to be the worse thing to happen once the oil balloon starts popping.
I would anticipate that once we are on the downward slide not only will it indicate the civil and economic upheavals to come but also the next "World War" as the major economies of the world fight it out over the remaining oil stocks. And who will fight? I believe China will be the beligerent, trying to control access to oil for her young growing industries. And the U.S., Europe,and Japan as the "Allies" trying to maintain market access for their mature economies. Russia is the wild card, with her own oil she will try to sit it out.
Either way you look at it, it won't be pretty.

Gee, can this really happen? And I was worried about the fuel surcharge on my utility bill!!

I think there are some unwritten rules. oil willl never peak . To many benefit from world economy .
everything is just a show. there also is biofuel development

Wow- talk about going after the worst case scenario...

The next "World War" would result in the end of civilization as we know it; due to nuclear, chemical, and biological warfare.

Every government of the world knows this, which is why we are very unlikely to ever see a war on the scale of WWI or WWII again- especially between civilized and industrial nations such as the US, Europe or China.

You folks should get in line with Nostrodomus and the Mayan Calendar (Dec. of 2012, baby!)

*Puts hand on forehead and shakes it Charlie Brown style*

listen , imagine if we did reach peak oil, what would happen, to dubai , the whole uae, and all of it s bussiness intrest overseas? the usa does not exploit its own oil there are enough oil reserves, all oil in irak is now the for the usa. there fighting now over iran now why do you think ??
to prove that they also have weapons and shit just like they said about saddam and take all there oil also ....you have no idea of what is going on in the world ...charlie brown

The bubble of vendor financing of US life-style (you buy our goods - we buy your debt/T-bills) is going to burst. It is not a question of if but when. This is inevitable as the world economies try to balance to the new reality of BRICK countries. The continued belief in the maintenance of a more-so a status quo is nothing but a wishful thinking and adds to the lack of preparedness.

I think jumping to a conclusion that centers itself on the premise of one last, great deadly debacle is silly. Though I do not maintain the gift of foresight, I cannot logically follow a deduction (that relys heavily on speculation) that leads to another uncertain summation, which in turn (may) lead to the next great world war. (Which undoubtedly leads to the extinction of humanity). Let's stop at square one and follow the plot when/if it develops. The thing about oil is that experts keep refining previous estimations on when supply will fall short of demand. Regardless, even if the downfall of oil (followed by further increase in prices) reaches its crecendo soon, I place my trust in my Chritian faith and therefore am not swayed by any notions of Armageddon because such a day is sure to come...but I do not think we should jump to hastily drawn conclusions as a result....

You gotta be positive or walk around depressed all the time -
I am hoping for the best and being as educated as possible about my investments.
Keeps me out of the mental hospital and off Lexapro.

While I believe that a great depression IS looming over the horizon, I must point out that nobody seems to question the origin of our financial woes... Centralized banking powers like the World Bank, the IMF, and the Federal Reserve are initiating (and have been) a planned devaluation of the dollar... Since we operate on a fiat system rather than on a system with gold or silver-backed currency, you see things like hyperinflation. This is because the Fed just prints more paper money (Monopoly), which is useless to begin with, to meet the demands of the market, the congress, etc. An analogy that might help make sense out of the situation is that of a slice of pie. As the Federal Reserve cuts more, ever-shrinking slices of that overall financial pie, each becomes worth less or, in other words, the whole things becomes worthless. You will never hear this argument from the mainstream media or politicians or candidates because, as I said, there is a contrived plan to deflate the American currency in order to create a worldwide depression... This will make the general public as well as foreign governments, states, and institutions more plaible and thus more susceptable to accepting a one world government run by a centralized world economic system - endorsed by an RFID-backed cashless system. Evidence of this is all over, so don't ask me about it... Do your own research. For a straight-foreward synopsis of this looming problem, google Ron Paul's stance on the Federal Reserve and the value of the dollar. He's the only candidate who mentions these facts because he's the only politician in the race with a clean slate and no NWO ties... RonPaul2008.com -- Restore the Republic or Face Destruction.

True that Bev - you choose the world you live in. The doom and gloom mentality of "peak oil" ( of which I used to be a part of) neglects to account for the mechanisms of free market capitalism. It is based on the left wing premise that corporations exist to get the maximum dollars today at any and all costs, and forget tomorrow. As any CEO will tell you, preparing for the future is half of their job. Peak oil is predicated on a world without innovation ( policy and technology), without human agency, without positive factors. I chose to reject that world view because in the end, I asked my self " how was it helping me to take this apocalyptic view?". And the answer is self-evident: it is not.

There is a lot of apocalyptic thinking around peak oil - just google the term and browse through the first few sites that pop up. These sites caused me some severe depression when I first discovered them a while back. I've since taken my future into my own hands - I'm far, far more self-reliant and confident than I was a few years ago. All in all, knowledge of peak oil has been good for me - if our economy crashes, I'll be in a good position to help my family, friends, neighbors, and community, and if it never peaks, I'm still a better, happier, more confident person because of it.

Most of the oil consumed is wasted on frivilous things like driving your SUV to work, heating and cooling your house to perfection, etc. Even though, Oil as percent of GDP has been steadily declining.

When oil peaks and eventually goes to $200 a barrel and beyond is anybody's guess.

But I can tell you this for sure, capitalism still works. Long before gas approaches $20 a gallon, ecomonic instincts will force everyone to buy a car getting 100 mpg plus, alter the thermostat radically, commute to work, etc.

The end of oil will only herald the beginning of a new era, and may definitely have a negative impact on the developing world. Here in the west though it will be a yawn.

Oil supply has more or less peaked out, and the fact that we know this I think makes it less likely to have that negative surprise which could spark off an '87 kind of crash.

I think we need to worry more about that huge forward looking debt that the USA has sunk into, which is like trillions and trillions of greenbacks.

Market routs are healthy, serving to weed out the weak and giving the smart and strong an opportunity to wise up and move on...something the current fed cuts are not helping to do....

The higher it goes the more painful that fall will be.

You are all too nervious. Its the behind the curtains that counts. Everybody is in the dark except the people that are pulling the strings.

Wow there are a lot of crazies posting on this message board. Thanks for the laughs.

PEAK OIL!! OHHHH NOOO!!!!!! What a bunch of loons!

A smart civilization, lead by a smart government, tries to anticipate real problems and start working real solutions some of which won't be all that easy as far as lifestyle changes or on the pocketbook. Instead, what we have is a dumb government and a gullible populace who instead of working on real, dangerous, global problems of a monumental scale waste their life and limbs on manufactured (the war in Iraq) and imaginery (take your pick) problems. And the population falls for it like 3 year old kids. My my how childlike we are.

A great depression today is going to be far more devastating than the 1929 crash. Why? Back then the population was much smaller, the country wasn't involved up to its neck in costly overseas "adventures", the country wasn't spending a great portion of its wealth on so-called "defense" (yeah, go around attacking and threatening other countries and then call it defense) and more importantly we still had a manufacturing base which has now all but disappeared. To make it all worse, the world is running out of oil, global warming and drought threaten our food supply, a Mexico with no economy and an exploding population floods our borders, and we have a massive debt financed by people which WE (not them) have designated our ideological enemies (Chinese and Arabs). Our solution? Print more money and expand our wars.

Yeah, let's all keep wasting your life away watching those reality shows and sports and pretend "everything gonna be fine".

i love you all

The world is going to end. Big deal.

Yadgya,
What do you mean BIG DEAL, the world is going to end?? I haven't sold my stocks yet!!
I'll need the extra buck's to get into heaven, INFLATION... Prices are rising, haven't you been listening?

What is funny s the Black Monday will never happen again. What the author does nt state is if something like that would happen again he market would shut down. If the market dropa certain prcentage it would stop trading for while before reopening. If the drop continues afer trading resumes the market would be stopped again so all this doom and gloom that the author is trying to sell you all would not happen.

That's right. A Black Monday type might not happen. The software trading that lead to the 1987 glitch have changed. But a Black Week, or Black September, or Black 2000 or a black decade is well possible where the market drops a huge percentage over the course of several days and weeks. Drops in the market do have psychological, panic driven reasons, but other reasons such as economic fundamentals as well. If we have a crumbling business structure, a bad business climate, large ongoing deficits, too many intrusive laws and such, which don't get addressed and corrected. Take the illegal immigration problem, something I have had to deal with all my life. It has never been addressed, and our quality of life continues to degrade as the result of that. The exploding population of that group with their own underground economy where states spend billions on their education, healthcare, gang issues, and don't get much back in taxes has been the doom of certain communities. That's how a county degrades from an advanced nation to a bankrupt one, a little here, a little there, a lot in Vietnam, a lot in Iraq. 100 years ago Britain was the superpower of the time. If and when that happens to us it'll be a lot worse.