Tuesday, March 15, 2011

Events So Improbable They Had Never Been Included In Anyone’s Models

For any new readers, back in the fall of 2006 I wrote that I was so bearish on Wall Street banks that I pulled all of my family’s money out of said firms.  We incessantly hammered our bearishness of banks and came within a few percentage points of nailing the top in the banking index, although our time component was off by a handful of months.  This was at a time when almost every hedge fund, global investor, banking CEO, S&P 500 CEO, every major consulting firms and every politician around the globe was incredibly bullish on Wall Street and globalization. 

About a year before Wall Street’s collapse we ran the video below and did a follow up on a handful of posts regarding “The Game”.  We outlined exactly what was going to happen to Wall Street banks and indeed in the fall of 2008, that is exactly what came to pass as Wall Street completely collapsed.   Don’t let the egos of incompetent CEOs fool you, every Wall Street firm would have collapsed without a massive multi-trillion bailout of unprecedented fraud and corruption.   

Since this rally started in 2009, we wrote countless posts on the dynamic that would again cause Wall Street to collapse.   All we needed was the spark to ignite the fire.  With volatility returning, has that spark started the ignition? We also wrote in detail of how the supposed regulation created by a corrupt Washington politicians actually had the reserve effect of locking out competition and cementing the fraud that exists today rather than reforming it.  And over the last few months we have written a few mocking statements of how Wall Street’s models will deal with the volatile events unfolding.  And we have written that we were again bearish on Wall Street and that their profits have peaked.  Wall Street firm’s stocks peaked almost a year ago, similar to what happened leading into 2008.

I think it’s time we repost this video as we did before the 2008 crash.  Pay particular attention to the remarks at about 2:05 of the video and the events leading up to it.

Our banks are given preferential treatment by our society because they are supposed to be serving human and social development of all American citizens.  Instead, Wall Street has become a cesspool of corruption and gambling in everything including placing bets against the American people, our teachers, our local governments, our states and our public institutions all while denying Americans access to their own capital as our citizens rot.  

As we have mentioned countless times on here over the years, our downside target for the S&P remains 200-450.   

posted by TimingLogic at 9:33 AM