No One Could Have Seen It Coming

But it did come. And it will come again. This time the bubble has been blown for over 60 years and the pop will echo for decades, but then you know it’ll be papered over like the 2008-09 “pop” was and like it is as you read this piece now. Its being “handled”. Back in the ’29 crash headlines daily read how the “market” was rebounding and how the economy was being “fixed”. Well of course we know how that all worked out. Once CONfidence is lost, no amount of “papering” can ever put it back in the bottle. Only time and substantive changes in the public mood can heal that big of an open wound. 

Since the last Great Depression, the game has been refined. In fact the last “Dear Chairman” did a PhD dissertation on the Great Depression and how Monetary Policy could have prevented it. Of course he can fix our current Debt debacle. Oh wait…..wasn’t he also the same “Dear Chairman” that testified in front of CONgress in 06 and 07 there was no housing bubble and as it began to break down in front of our eyes continued to assuage CONgress that there would be NO housing downturn and that IF there was it would be brief and quickly rebound. He was also the same “Dear Chairman” that stated categorically in 07 as we began the Great Recession that he saw NO recession on the horizon….not once but several times throughout 07. I don’t know about you, but I feel better we’re fixed now. Oh wait……….Wasn’t he the same “Dear Chairman” that testified in front of CONgress in late 08 and 09 that “NO ONE” could have seen “this” coming. Even though Shiff, Shilling, Fleckenstein, and many many market experts warned of this for several years before it happened. It almost makes me wonder if he intentionally popped the “bubble”………but then maybe I’m giving him too much credit.

Well…..someone’s preparing for something and whatever that “something” is I have a feeling that we’re going to have an answer sooner rather than later. I’ll take later but that bubble has a habit of just getting bigger with time and as we all know, it just takes a “pin prick” to pop a bubble and then of course there will be lines of people and different places with the same look on their faces and with the same answer. We never saw this coming. No one ever talked about this. How could this have happened?