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Predicting Crashes »

Posted on 11 Mar 2011 | 12,220 views
Jesse Livermore Predicted 1907 and 1929 Crash

Livermore first became famous after the Panic of 1907 when he sold the market short as it crashed. He noticed conditions where a lack of capital existed to buy stock. Accordingly, he predicted that there would be a sharp drop in prices when many speculators were simultaneously forced to sell by margin calls and a lack of credit.