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24/07/2012

PUBLIC SERVICE: Taking the same medication that made them sick will possibly make them sick again soon

New crash coming before Bernanke leaves Fed by early 2014

The next “collapse will come on Bernanke’s watch.” Warning to investors: Bernanke’s second four-year term as chairman of the Fed ends Jan. 31, 2014. (He will remain a board member until 2020.)

Get it? There will be another crash. The crash will ignite before 2014 when Bernanke’s term ends. The crash will be worse than 2008. Bernanke will be the cause. He will be clueless about the unintended consequences of his policies (like his predecessor Alan Greenspan, who ultimately had to admit to Congress “I really didn’t get it until very late.”)

Bernanke’s no different. When reappointed in 2010, “Black Swan” author Nicholas Taleb said Bernanke “doesn’t even know that he doesn’t understand how things work.”

Unfortunately, since Wall Street simply went back to business as usual after the 2008 Crash, fighting all reforms, a new crash is not only easy to predict in the 2013-2014 period, we can also predict that it will be far more deadly for Wall Street banks, the American economy, taxpayers, investors, consumers and retirees.

Guess what? Many ‘Dr. Dooms’ predicted 2008 crash

Why so easy to predict? Because we’re repeating all the same dumb and dumber mistakes we did in the year leading up to the 2008 crash. The Fed’s cheap money policies have favored banks, devaluing the dollar, destroying the value of stocks, fueling inflation, triggering job losses and social unrest. In short, the happy conspiracy between the Fed and Wall Street is suicidal and will take down the rest of America with it.

Same mistakes? You bet. In mid-June 2008 just before the collapse we listed several years of warnings about a coming global economic and market crash. And they were not just a ragtag bunch of “Dr. Dooms.” Read the whole list of who was predicting the meltdown of 2008, a “Who’s Who” of American leaders in finance, business and government.

Here’s a selection of the warnings of a crash coming, all made years before the 2008 global meltdown … Two Fed Governors beginning in 2000 … then in 2004, former Secretary of Commerce Pete Peterson … hedge fund managers like Rodriguez and Soros ... in 2005, economist Nouriel Roubini and the IMF’s Chief Economist, Raghuram Rajan … also a Special Report in the Economist on the 75% appreciation in global real estate in just five years … in 2006 Texas billionaire Rainwater warned us in Fortune; collapse warnings from Faber, from economist Gary Shilling in Forbes, also bond king Bill Gross, and Warren Buffett in Fortune … and a Harpers special on coming collapse in real estate … then in August 2006, the new Treasury Secretary Hank Paulson privately warned Bush’s staff at Camp David ... in 2007, more warnings, from money manager Jeremy Grantham, economist Gary Shilling in his Insight Newsletter and former SEC Chairman Arthur Levitt in the Wall Street Journal … at the same time our new Treasury Secretary was quoted in Fortune: “Strongest economy in my lifetime.”

«How Bernanke will cause the next crash before 2014», Paul B. Farrell, Market Watch

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