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Paul Farrell's 10 Reasons Not To Buy Stocks Until After The Next Market Crash

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http://www.zerohedge.com/article/paul-farrells-10-reasons-not-buy-stocks-until-after-next-market-crash

'Paul Farrell lights it up in his latest market commentary, which puts even some of the more hard-core realists out there to shame: "Wall Street is a loser. Stocks are Wall Street’s ultimate sucker bet. And it’ll sucker you again. You’ll lose, worse than in the last decade. Wake up before Wall Street banks trigger the next meltdown, igniting mass bankruptcy." Um, wow. And seeing how we have been saying that only absolutely immaculate top tickers should be in this market, we agree wholeheartedly with Farrel.

1. American stocks are a high-risk sucker bet

America’s divided into two stock markets: one for Wall Street’s rich insiders, another for Main Street’s suckers.

2. New ‘big short’ dead ahead: Derivatives con game will crash again

3. Hedge funds shorting China: Warning — U.S. faces collateral damage

Get it? China may well crash first.Back in the 1980s, Japan “grew largely on the back of capital investment” and then turned into “a capital-destruction machine, and that’s what China is now. You have an economy that’s 60% fixed-asset investment, and not even in the developing world is that sustainable.”

4. New insider-trading indictments killing Main Street confidence

5. Banksters’ perfect gambling record proves stocks a rigged game

Last year we reported that Goldman Sachs made more than $100 million in profit a day for 23 days in one month. This year the con game has gotten bolder.

Morici says “J.P. Morgan and Bank of America went through the entire third quarter without a negative trading day, no losing days on proprietary trades. Unless you believe in perfection, something stinks about the information they are using. If someone is winning all the time, then someone else is losing.''

6. Wall Street is socially worthless, existing only to make insiders rich

Worse, continues Cassidy, “even after all that has happened, there is a tendency in Congress and the White House to defer to Wall Street.” Why? Wall Street’s huge lobbying war chest. Soon all this will come to a disastrous climax, Wall Street will implode on blind greed.

7. The Fed is America’s worst nightmare, a $3.3 trillion moral hazard

Moral hazard simply means no consequences for Wall Street’s complicity in triggering the 2008 catastrophe. As a result, Wall Street insiders came away believing they can take bigger and riskier bets in the future because they will get away with it next time, too.

Why? Because America’s suckers will be dumb enough to bail them out the next time, too, with no consequences when they fail miserably again.

8. Wake up to a new normal: no growth, deflation

America’s new era, featuring no growth, deflation and a jobless recovery, will continue for years, resembling Japan over the past two decades. Worse, brutal deficit cuts will trigger riots, as in England, France.

9. Privatize Social Security: New GOP Congress loves dumb ideas

Wall Street’s casino would love to get their hands on another $20 trillion of your retirement money, to gamble in their derivatives casino.

10. Warning: Wall Street will lose another 20% of your money by 2020

Adjusted for inflation, Wall Street has lost 20% of your money in the past decade.

Stocks are a sucker bet at Wall Street’s rigged casino. Buy stocks and lose. In fact, you’ll probably lose more that 20% when the third meltdown of the 21st century explodes. Bigger losses than in 2000 and 2008 combined. When Wall Street’s too-greedy-to-fail banks finally collapse. When they cannot push the second Great Depression downhill one more time. When taxpayers revolt, refusing to bail out our corrupt banking system. When the American people force Congress to return to tough 1930s regulation.

Folks, Wall Street is suicidal. It’s kamikaze. A deadly game of Russian roulette with America’s future. Wall Street’s self-destructive greed is driving America to the edge of total failure. Yet Wall Street’s behavior is so predictable — like a blind addict trapped in denial, unable to see the deadly consequences of his behavior. '

it's hard to disagree with any of it except for the possibility of Wall St losing people 20% of their moeny,methinks it will be a sight more than that.

For someone who is not very keen on physical gold, your post seems to suggest avoiding the wall st / fed ponzi at all costs, therein lies the dilema fiat backed fed print happy go lucky cash or something more tangible?

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When this all going to happen? This week? Next? How about within 6 months?

Isn't the problem - playing devil's advocate - that people like this guy have been saying the same thing for the past 18 months and in that time those who listened to him have missed out on market rises... and everyone else has made a lot of money?

Is it not true if as he says - that the banks and markets are being propped up by the US Govt - then the markets will not collapse and hence the thing to do with this advice is to jump in and make money?

Why doesn't he give a timescale? Yes, there will be another major crash some-day and he will be right but, you know what, so will I.

"I want to believe" is the tag line for all those Fox Mulder types who believe in a US Govt UFO conspiracy - aren't the boys and girls who believe in a DOW manipulation no different?

Playing Devil's advocate here people - but isn't what he is saying just Group-think for the "I want to believe" financial conspiracy crowd. In the meantime, everyone in shares is making money?

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Read this article, and associated linked articles from back in May, and apparently the DOW collapses was imminent back then. It is now December!

This is the stockmarket's answer to the man who sold-to-rent in 2002 ....

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Does anyone seriously think that stocks aren't going to rise whilst The Fed pumps all those QE dollars into the 'economy'.

If China upped its interest by a full 1% then the stocks that have pushed the market up (commodoties and energy) would be in for some very severe falls , especially with the financials at their year lows and the retailers about to hit a brick wall after christmas , i don't see the fed being able to stop a stock market rout with any amount of funny money. I'm quite happy to trade shares short term but i reckon the buy and hold merchants are in for a bumpy ride.

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If China upped its interest by a full 1% then the stocks that have pushed the market up (commodoties and energy) would be in for some very severe falls , especially with the financials at their year lows and the retailers about to hit a brick wall after christmas , i don't see the fed being able to stop a stock market rout with any amount of funny money. I'm quite happy to trade shares short term but i reckon the buy and hold merchants are in for a bumpy ride.

Why would China raise rates - to stop its own market/economy over-heating? Haven't they been talking about China possibly doing this for a year now?

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When this all going to happen? This week? Next? How about within 6 months?

Isn't the problem - playing devil's advocate - that people like this guy have been saying the same thing for the past 18 months and in that time those who listened to him have missed out on market rises... and everyone else has made a lot of money?

Is it not true if as he says - that the banks and markets are being propped up by the US Govt - then the markets will not collapse and hence the thing to do with this advice is to jump in and make money?

Why doesn't he give a timescale? Yes, there will be another major crash some-day and he will be right but, you know what, so will I.

"I want to believe" is the tag line for all those Fox Mulder types who believe in a US Govt UFO conspiracy - aren't the boys and girls who believe in a DOW manipulation no different?

Playing Devil's advocate here people - but isn't what he is saying just Group-think for the "I want to believe" financial conspiracy crowd. In the meantime, everyone in shares is making money?

I've got a Bob Beckman book sat here in front of me - just checked the published date - 1983.

And he was smart.

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http://www.zerohedge.com/article/paul-farrells-10-reasons-not-buy-stocks-until-after-next-market-crash

'Paul Farrell lights it up in his latest market commentary, which puts even some of the more hard-core realists out there to shame: "Wall Street is a loser. Stocks are Wall..... the deadly consequences of his behavior. '

it's hard to disagree with any of it except for the possibility of Wall St losing people 20% of their moeny,methinks it will be a sight more than that.

Nonsense. There is no analysis here to either agree or disagree with. The writer seems to have a slight mental illness. This whole article is just a display of ill-informed opinionated paranoia. Why even bother to give it the time of day?

Edited by Hat

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If you google Bob Beckham you get loads of photos of that woman with a bob haircut - who he?

Beckman (economystic and financial historian)

He was warning of the imminent 2nd Great Depression in the early 80s.

He pretty much predicted 2007 onwards but 25 years early.

So he followed it up with 'Into The Upwave'.

Which was my point.

http://www.amazon.co.uk/Downwave-Surviving-Second-Great-Depression/dp/0903852381/ref=sr_1_1?s=books&ie=UTF8&qid=1291816775&sr=1-1

Edited by Red Karma

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Beckman (economystic and financial historian)

He was warning of the imminent 2nd Great Depression in the early 80s.

He pretty much predicted 2007 onwards but 25 years early.

So he followed it up with 'Into The Upwave'.

Which was my point.

http://www.amazon.co.uk/Downwave-Surviving-Second-Great-Depression/dp/0903852381/ref=sr_1_1?s=books&ie=UTF8&qid=1291816775&sr=1-1

That is an interesting looking book but isn't the problem over-looked here that a chap writes a book about a coming second great depression and eventually sometime he will be proved right?

Writing a book 25 years ago about a coming second great depression does not make him a guru if 25 years later we are still to enter one.

Even doomesters walking around with 'The End of the World is Night' boards will be proved eventually right. Do you think just as the World is about to explode people will be saying "Those guys 5 billion years ago saying the World would end were right after all - what visionaries!"?

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I haven't read the book, but if he has got the various linkages correct then there is a useful analog there to answer the question of 'where next?' - it's probably the thinking through rather than his timing which is the real value.

Good point. I can go with that.

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a sensible policy.

that's the issue at the moment.Any rise in interest rates and the floor could dissappear beneath you if you're long stocks.

Again, the question is what would cause the rise in IRs when all Western countries state openly they are committed to low IRs for years to come.

China? Is everything dependent upon China?

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Fear,Greed,Panic.

Failing those,the dawning realisation that there isn't such a thing as a risk free return.

Ah, now you are in the realms of psychology - the problem is that the people who control the rates are not just set in their thinking but they are set in a reinforcing group-think.

Very difficult to change that mindset. Very difficult for one within the group to even raise the possibility that the group think is wrong.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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