Critical Warning No. 17: Dow 5,000, crash of 65% "SAN LUIS OBISPO, Calif. (MarketWatch) — Critical warning No. 17? Lost count? Here’s the latest: “The stock market is about to have a devastating decline; we will see Dow 5,000 before we see Dow 20,000.” That’s Terry Burnham, former Goldman Sachs trader, biotech entrepreneur, money manager, author of “Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality,” on PBS. A former Harvard professor of behavioral economics, a guy on par with Nobel economist Daniel Kahneman; “Black Swan’s” Nassim Nicholas Taleb; and Dan Ariely, author of “Predictably Irrational: The Hidden Forces That Shape Our Decisions.” As if to punctuate his new warning, Burnham’s PBS editor added this postscript: “Over the weekend at ZeroHedge, the gloomiest of all gloomsters, Tyler Durden,” compared the current stock market to the sucker’s rally of 1928 that set up and led the lambs to the 1929 slaughter. So, history buffs, be warned that Fed Chairman Ben Bernanke’s risky cheap-money bubble-blowing “depression-fighting remedies” are repeating the 1928 bull-market sucker’s rally, and the “side effects could include ... another depression.” Our lizard brains lead us to buy stocks after they have gone up and blind us to the obvious realities. Warning bells are everywhere: Dow 5,000 ... another depression ... massive denial on Wall Street and Main Street ... a new meltdown bigger than the 2000 dot-com crash ... longer than the 30-month recession of 2000-03 where Wall Street lost $8 trillion of America’s retirement money ... worse than the fact that Wall Street narrowly breaks even on an inflation-adjusted basis ... and bigger than the 2008 bank-credit meltdown with the de facto bankruptcy of all Wall Street’s banks ... with trillions in new debt dumped on taxpayers by the U.S. Treasury ... and Bernanke’s wanton “grand experiment” showering endless cheap money into speculation ... and blowing the biggest bubble in history." marketwatch/story/critical-warning-no-17-dow-5000-crash-of-65-2013-07-17?link=mw_home_kiosk
Posted on: Sat, 20 Jul 2013 13:07:20 +0000
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