"The deepest and longest recession since the 1930s will end in the second half of 2009", Wells Fargo & Co. economists said in their annual forecast, many years ago. Can you trust Wells Fargo Company and their employee's opinions?
"The third quarter of next year will be "better than expected" by many, said chief investment strategist Jim Paulsen. "It's like you're at a cookout and you're trying and trying to get your charcoal going and you keep squirting on lighter fluid and all of a sudden it goes 'poof!'"
How accurate was that statement and if not accurate then misleading? And why is the SEC not serving a Wells Notice on Warren Buffet, WFC, and the other economists who make money touting good news for the economy?
Paulsen said "fear mongering" by government officials who were trying to sell the $700 billion Troubled Asset Relief Program in the fall made the situation much worse, freezing everyone in their tracks and bringing on "economic paralysis." Nothing the Banks or the government have done so far has solved the global meltdown which continues to occur in soft assets pushing prices of metals and hard assets skyward. Not even real estate is considered a hard asset by most Europeans these days. After all, what are you buying other than a piece of paper backed by another piece of paper when you deal in the US Monopolised Dollar Market.
Senior economist Scott Anderson predicted that "housing will lead the way back". "One bright note is that the sector that led the economy into this morass is about to turn the corner, perhaps as soon as this summer, and will start to lead us out."
That false and misleading statement probably cost a lot of people a lot of money in their overinflated ponzi structured retirement nest eggs. Why is the SEC not investigating Mr. Anderson?
The job market is still one of the worst in decades, with another 3.7 million jobs expected to be lost next year, Anderson said back then.
That means 5.5 million jobs will be lost in this recession, twice as many as were lost in the 1981-1982 recession, the second worst since World War II.
But what about the 22 more million more homes that are just starting into the foreclosure process because people who bought them know that the ponzi game is collapsing so why through good money after bad mortgage debt?
Why is the SEC not investigating and prosecuting the more than 40 million fraudulent loan applications taken under the liar loan programs promoted and funded by BAC a la Countrywide and Washington Mutual, and JPM and C, and fining those people hundreds of thousands of dollars, barring them from ever taking out a loan application again or buying or selling any real estate in America ever again? How just would that be?
Senor economist Eugenio Aleman said he is concerned that injecting of hundreds of billions of dollars into the economy through the financial sector is not helping those who need it most. Who needs money the most?
Why bankers do of course, otherwise they would not have gotten all those federal bailout funds and then settled for $30 billion for all the fraud that is still extant in the global markets for US Real Estate Backed Phony Electronic Paper. It's such a sham you have to be able to view things from the viewpoint of a trillionaire. Buffet, Gates, Soros, Slim, none of these guys get it.
Short the thousand or so troubled banks out there still and stay tuned to mortgage meltdown phase two.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.