They say nobody saw it coming...

This is for all those people who think that this economic downturn is due to something quiet mysterious. Specially for all those folks who keep believing that 'No one can predict where it is headed and worst of all is that nobody saw it coming'. What a load of bull. There were many who knew what they talk on bubblevision was a lie. A big fat lie. There were people yelling at top of their lungs trying to point out systemic risk facing our planet's economy before any of those so called thinking heads on bubblevision. But they were and still branded as Dr. Dooms on various bubblevision channels. Any reasonable and logical human being can understand that something rotten about this economic mess or should i call it a catastrophe is being covered up.

Wake up people. What they are hoping to do with this stimulus and bailout money is like trying to use deodorant while sitting on pile of horseshit, hoping no one will smell the horseshit.

Warren Buffett warned his shareholders about WMD called Derivetives back in 2002,
"The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."

Excerpt from Warren Buffett's Warning to Shareholder in Annual Report 2002

Charles Hugh Smith made predictions about stock market falling by atleast 3000 points back in November 2007. Here are his predictions (Listed in his own words). I have posted link to his complete article if you are interested in reading his obituiry for entire economy.

"Here are a few predictions:
1. The Dow Jones Industrials will drop hundreds of points in a day, very soon, losing at least 3,000 points within the next few weeks.
2. The Shanghai stock market will lose half its value, dropping from 5,800 to under 3,000.
3. Major banks will be declared insolvent.
4. Major lay-offs will occur as U.S. retail, auto and house sales plummet.
5. The tech high-fliers (RIMM, GOOG and AAPL) fall will precipitously

As I have noted here last week, trading curbs (and the uptick rule on shorting) have both been abolished. There are no constraints on the market falling; a free-fall of several thousand points in a single day is now possible. I also ran a chart of the VIX volatility chart which suggested a breakout up (i.e. a sharply declining market) was probable. Maybe I'm off by a few weeks, but I think not.

The Empire of Debt is crashing, and it won't take months for the global financial markets to react. For alas, the money's already lost. Not that the mainstream media will be willing to state this inconvenient truth...."


Here is the link to his complete analysis and prediction..
Empire of Debt I: The Great Unraveling Begins


And then there are people like Peter Schiff, Nassim Nicholas Taleb, Gerald Celente, Jim Rogers and many more. These people may not be completely right in their predictions but from what i have read and heard from them over the past few years, they have been darn close to what has transpired over past 18 months. They saw it coming. And our leaders have audacity to come on bubblevision and tell people, this was 'some random collapse', 'some unknown phenomenon', and sickening lie that 'nobody saw it coming'...? WTF? you are telling me nobody saw this coming!!!!!