Bill I borrowed this from yahoo, does this opinion have merit?
<<There is going to be a market meltdown, the likes of which we have not seen since 1929. This collapse will have multiple causes, not the least of which will be Wall Street's enthusiasm for hyping up companies they underwrite to valuation levels that are utter lunacy.
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The latest market correction should have served as a warning sign to investors that all was not right. Instead, the major Wall Street brokerages houses have responded by issuing an ever greater number of "strong buy" recommendations on many companies which have no hope of ever making a profit, espescially, but not at all limited to, areas like the internet and computer services.
One thing I have learned is that any system based on corruption will ultimately collapse in a heap of rubble. Wall Street's hyping of companies to unreasonable levels and the misuse of accounting standards will level this market.
What will likely precipitate this collapse is the Options market in Chicago. This market gives investors the potential to reap extraordinary gains, and also catastrophic losses. The Bailout arranged for Long Term Credit Bank is only the first example of how the options market has injected a huge amount of leverage into our financial system, which is also what caused the collapse of the stock market and banking system in 1929. Keep in mind that the effect of the options market on our financial system has never been tested in a vicious bear market since its inception in 1973, and has not been in such widespread use until recently.
It will take awhile for people to realize that they have been lied to by the brokerage houses, that the major players are interested in lining their own pockets at the expense of everyone else. Unfortunately, there is no way around a collapse now. The only question is when. My guess is very soon, the major brokerage houses will attempt to turn the Public Relations crank and it will no longer work. Panic will ensue and the trickle out of the stock market will turn into a stampede..
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Michael Bidder |
