DiracMan

Charlie Gasparino: Another Crash 'Has to Happen Again'

Are we in April 1930 (the worst to soon start after a 95% stock recovery from October 1929) or July 1932 (the Great Depression in full gear after stocks had lost an astounding 95% of their value in essentially seven more stock market crashes and the country completely on the ropes for 12 more years)?

The market recovery to April 1930 was sustained by professional market game players doing short selling and buying what they thought were bargains amid various other footwork schemes and insider pure money play maneuvers. None of it was any real investing in anything. Just manipulation of the financial system for personal gain. The underlying causes and abuses in the system were never addressed. People were deluded into thinking the water tight doors on the Titanic would hold. The other shoe dropped. And the rest was history.

Any similarities to March 2009-November 2009?

Will there be a second panic, crisis, and break?

I have been thinking about this a lot because the charts are so similar and the failure to address underlying abuses so in parallel. Then it was the prevalent ideological passivity not to "interfere in markets" Now it is more and more obvious that it is the unholy alliance between the halls of Washington D.C. and Wall Street. This article points out a feeling of great unease to me.

Where will the next catastrophic event of hubris come from with nothing being really done to address the rivets on those supposedly water tight doors under the water line?

The greatest thing that suddenly jumped out at me from this article is the image of Goldman Sachs as now the greatest wild eyed Al Qaeda suicide bomber on Earth. Skin taught. Half dollar sized eyes sunken into darkness. Three days growth of stubble beard. A TRADING INVESTMENT BANK bank now backed by the Federal Reserve and the machinery of the Government of the United States and it's TAXPAYERS! The bomb is now a strapped on FINANCIAL NUCLEAR WEAPON parcel suspended in the olive drab web gear. Any instrument of deranged excessive risk that leads to endless bonuses for the insiders. can now take down the entire world AGAIN on ROUND TWO! Any new kind of open ended derivatives scheme in the unregulated OTC market and the sea water can come rushing in to pull the ship down, then vertical, the the engines breaking lose to crash out the bottom and rip the hull full open to the sea.

Very sobering. We have now created something perhaps not seen since the treasury of Spain was put behind the conquest of Inca Gold that eventually bankrupted the country. A TRADING BANK backed by the TAXPAYERS OF THE UNITED STATES!

We live in amazing times and it just seems to go on and on with no end in sight.

Citibank's Problems Are Far from Over

Excellent post.


On Jul 19 04:30 PM Fourpenny Guy wrote:

> The problems with Citi have been manifold: