Posted on 11/02/2009 8:18:47 PM PST by blam
Economic Recovery, The Great Hoax of 2009-2010
Economics / Economic Recovery
Nov 02, 2009 - 07:40 AM
By: Martin_D_Weiss
Before he died, Dad warned me of false profits … and fake promises.
“Beware,” he said, “of shaky gains hyped up by Wall Street.
“Watch out,” he insisted, “for unsustainable economic recoveries trumpeted by Washington.
“And no matter when or where you may be, don’t be fooled by illusions of wealth and prosperity.
“If they’re built on a foundation of shaky debt, they’re suspect. If they’re driven by unbridled speculation, they’re pure fluff. And if they’re bought and paid for by Washington, they will certainly end in catastrophe.”
Sure enough, in the years that followed, millions of Americans were fooled by illusions of wealth created by the Great Tech Bubble of 1998-1999.
Millions more were fooled for a second time by illusions of prosperity in the Great Housing Bubble of 2005-2006.
And now, despite these blatant lessons of history, they are being fooled again — this time, in …
The Great Recovery Hoax of 2009-2010
There can be no debate that, in each of these episodes, things did go up: The Nasdaq soared before it crashed. The median price of U.S. homes skyrocketed before it collapsed. And now, the U.S. economy has reversed course — from four consecutive quarters of contraction to at least one quarter of expansion.
There also can be no doubt that these trends do not end overnight. They can continue for months — often plowing over skeptics and even exceeding the expectations of believers.
[snip]
He has been mostly correct over the years. I have been a long time subscriber to his Safe Money Report.
bump for later—thanks
I’m expecting a bit of a second dip, but I do think it’s ironic that an “oracle” is warning of false profits.
If such old saws were true we'd be less rich now than we were then, and that isn't remotely the case. The reality is, with all the silliness of every bubble ever, the trend is always up, and the low of the latest smash touch the highs of the previous bout of insanity.
Might pull back temporarily after the incredible run since March, surely, but March was the low and the bear is dead as a doornail.
bump
Perhaps I missed the predictions that you report him to state but the concept you state I have never know him hold. No attempt to debate with you but as a long time reader of him I have never known him make such statements.
Thank, tk
Direct quote from your own article above.
We are in the midst of the reality of wealth and prosperity. Doom mongers keep trying to pretend otherwise, and every pendulum swing they pretend they are right because of it. But we remain in the midst of wealth and prosperity, and get wealthier and more prosperous every decade with the consistency of a swiss watch.
You must be a plastic cut-out!
You post the same tripe on every bulletin board on the internet; do you think it will make it come true?
We are not in a crisis of belief; we are in a crisis of debt that exceeds the imagination. All your Obama cheerleading is of no effect; there just isn’t enough credit to cover the growing toxic debt.
And you really believe that we are not? - With real unemployment clawing at 25%? And banks falling like willow leaves?
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