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in my book the crash a twenty 16 I suggest
that the crash that happened in 2000 8
wasn't as bad or as severe as it could have been
because obama intervened in the marketplace
ambush intervene in the market place first in with the bank bailout
but bat I mean that save the banks but that's not save the economy
well said the economy was stimulus spending the stimulus bill Obama got
past as soon as he became president
and that's in fact when the job hemorrhaging turned around you
I will sing the famous kinda bikini grappler you know that the jobs
just crashing under the last six months a bush
and the first Multiple Obama and then the jobs legislation the stimulus gets
past
and boom the jobs go back up again well what up along with jobs was the stock
market the
Standard & Poor's yours too major ratings for the stock market does
S&P and the Dow and the Dollard fallen from like 13000 like six or seven
thousand I'm doing this remembrance appears all but it was
it was pretty substantial drop the S&P
had a very very why I thought that
alrighty I dropped the that produces a real a little more thoughtful response
or
were sometimes not and that is the S&P 1.2 666
I'm not making this up and so
on Saturday as louise i replying home from Mexico
were changing planes in Houston and I
yeah and I grabbed a copy the financial times and you're on the back page
in the on the some pages likes comments the my dear page to read
there is an article by John authors which I just reprinted
title number games with 666 Lohan up in 2009
now the argument that I making
pressure 2016 is that we didn't go as low as we could have
he's suggesting moon arguing that some are suggesting that we
should have gone lower than 666
not just could have but should have ADEA he uses so he quotes stock market is
soaring russet Russell Napier
and says you look at the four great US market bottoms nineteen twenty-one
is big crash right after the who was
are sees me harding was elected and drop the top tax rate
there was a big crash in 30 the bottom there's the the bottom in the market
it is a marker bottles bottle the market was as the market
to crash before 21 so any on in 33
you had the crash and start 1929 hit bottom in 33
your crash and
in right after world war two and forty southerner 48
that hit bottom maybe forty six hit bottom in 49 and you had a crash in 1982
that only lasts a
you know you're so yearly reagan crash
makes the point
that 666 was only 14 percent below the long-term average
love these stocks what's called Tobin's Q
stock market ratio I the value the stock
to the stock market's ratio the total replacement value of its assets in a
heads up the cancer is santa came up with this formula
and 666 was fourteen percent below that but in all the other day stock market
crashes the law was fifty percent below that
as the plan which the market begins to recover and they did
happen and so they're thinking
you know it could be as his on Saturday
today Monday we've got set kleiman
no one most famous investors in the world is so famous that the book he
wrote on investment that is no longer in print
sell second-hand on Amazon for 2009 hundred dollars a copy
need four billion dollars for his clients last year
is referred to by the right by the water Financial Times as one the world's most
respected investors
Bob post group is his hedge fund it
manages $27 billion dollars it has as Miles Johnson
the hedge fund corresponds to the Financial Times notes a cult-like
following
when he said mister Carmen pointed out
that last year the S&P was up 32 percent on the nasdaq went up forty percent
but corporate earnings did not go up
so why is the stock market going up now I would answer that question
very simply by saying hot money you've got the top one tenth of one percent the
top 100 the one percent
who made most their minds to capital gains they're paying a maximum income
tax rate of twenty percent
and many of them a pain far less than 20 percent but a Mitt Romney
paid the big virtually nothing at all and sent many years to pay nothing
and so the money is like
you know it comes really easy easy come easy go and so they
da gambling with this money in in gambling with this money we have a new
housing bubble it has developed in Florida
as a result of hedge fund specs speculation and not just for its
happening all over the country you can hedge funds coming you got spawn
schools have cash Chinese Saudi coming in
buying up %uh homes by a property but more importantly you've got
you know it's like where can we put our money I but the mod so there's one
investment newsletter that I follow
it's the Eden forecast Aten forecast
and last week they were suggesting maybe it's time to buy bonds to go to like TLT
which is a bond
mutual fund which
you know I can say that they're saying the crash is coming but
I mean typically that's what you do if you think this crash is coming is a move
your money into bonds
early summer so
any I just you know the net now to this
is not so much on my got a crash is coming but rather
we need to fix the structural stuff that prevents a crash
happening we need to rip your clothes repeal gramm-leach-bliley
a blast to go back in a place we need to reregulate the bank's
we need to I me basically we need to repudiate
the 32 years a reaganomics that we've been living under since reagan's
Brazilian to rate it took office
he stopped enforcing the Sherman Antitrust Act we need to start and
forcing me to break up the big banks break up the big media companies break
up the big
you know the industrial combines break up the big problems
Pharmaceutical Co break up the big food companies but a big and you name the
industry or sector
and it has come to be dominated by fewer than six companies
that's not a healthy economy that's knowledge Bourque
Bernard on a mi and it needs to be broken up
and we need to reregulate our backs and we need to raise the top tax the top
income tax
on money easily gain a non bunny over a million dollars a year nobody owns more
than a million dollars you about being
you know super smart or work in supermarkets its after that point it's
its gambling money we need to raise the top income tax rate above fifty percent
which history tells us stabilizes markets
and we need to put a very small transaction tax on every stock sold or
bought
to stop the seventy percent of the ultimate in the stock market which is
being run by computers me up said
this program for it just a simple set of things that will prevent aggression
happening
or will put us back together after the match what happens but I'm telling you
yet rated