“Who Could’ve Foreseen This Happening?

The Emergency Fed meeting today – announcing “unprecedented moves to calm corporate debt” – combined with a lot of hand wringing, finger pointing, and political bickering will end up with the banksters and politicos agreeing with one of our favorite sayings, “WHO COULD’VE FORESEEN THIS HAPPENING?”

“I’m Shocked, I tell you…Shocked!”

I hate to sound like a broken record but this is the same reaction we got during the meltdown in 2008, the tech bubble in 2000, the crash in 1987, and every other time no one wants to be accountable for the mistakes THEY made that caused most of the problems.

Go with me here.

Flashback…September 2008.

Former Goldman Sachs CEO (and Secretary of the Treasury in 2008) Henry “Hank” Paulson screamed how there will be “TANKS IN THE STREET, MR. PRESIDENT!” if Bush didn’t sign the $700 Billion TARP law to “CALM THE MARKETS.”

Ironically (or NOT) it failed to pass and the market continued its downward spiral.

Then, after lots of hand wringing, finger pointing, political bickering, and banksters saying “Who Could’ve Foreseen This Happening” they somehow passed the bill.

The markets then breathed a sigh of relief with the DOW settling in at 11,548 by late September.

Ironically (or NOT) the markets always have a way of hitting you upside the head when you least expect it.

After crossing over the 14,198 level in October 2008, the market experienced another “Pukefest” that lasted until March 2009 with the DOW then closing at 6,469.

Do the math.

That’s an ADDITIONAL 54% decline after believing that the Emergency $700 Billion TARP Bill would save the day.

Are you seeing any similarities with today’s “Emergency Meeting to “Calm the Markets?”

To be continued…