[Sandreckoner]

“Get out of the way. The house of cards oh so carefully built by the geniuses on Wall Street and in the hedge funds is about to collapse big time”

Kunstler and his ilk predict essentially the same cycle of events year after year after year. Eventually something sorta-kinda happens that sorta-kinda parallels what they’d been predicting (generally something cyclical that finally comes due, like a recession) and they become semi-demi-gods among people who see the world as they do.

This same guy was assuring a recession in 2007, and even claimed we’d find last year that we lost a full percentage point of GDP in 2006. His stock predictions? Same old same old.

His Wiki entry is telling:
“Kunstler, who majored in Theater at college and has no formal training in the fields in which he prognosticates, made similar predictions for Y2K as he makes for peak oil.[5][6] Kunstler responds to this criticism by saying that a Y2K catastrophe was averted by the hundreds of billions of dollars that were spent fixing the problem, a lot of it “in secret,” he claims.[7]”

[csmusaret]

He predicted ten of the last two recessions?

[djf]

There were hundreds of billions of those bonds and CDO's sold to European interests, invested in retirement funds, etc.

You think they're just gonna sit back and sing La-Di-Da, Kumbaya, as they watch their investments go down the crapper into the septic tank?

They'll get their pound of flesh somehow. And it won't be by buying up more T-bills.