NASDAQ Pundit Speak

April 8, 2000

You have to admire the organized reassurance effort underway in the media. CBS' MarketWatch highlights the NASDAQ's implosion and then recovery yesterday as "NASDAQ gets its Sea Legs." Sea Legs? No. What happened yesterday was the uncontrollable retching and vomiting associated with a deep case of seasickness. How the NASDAQ's face can be both green and red at the same time is one of the marvels our modern age. Or as one commentator put it so, so insanely, "the market violence" is what surprised everybody. Market violence isn't exactly what happened. Remember all those warnings about programmed sell orders and margin calls? Remember all those pesky technical factors? Remember all the... oh nobody listens anyway, but they should. A lunar orbit PE ratio didn't look so hot yesterday, now did it?

The NASDAQ must have thought of Custer at the Little Big Horn as it screamed, "Where did all those cotton picking sell orders come from?" But no problemo, today is-all together now- "a buying opportunity for the astute investor." I'm sure somebody said that, only I would replace astute with a stupid. This new fangled economy is beginning to look a lot like the old fangled economy isn't it?

Pity poor Mr. GreenSpan the bubble blower. He must have wondered if the whole bathroom door would pop off and all those economic bubbles would engulf him. Of the many, many, many economic follies of our time, Mr. GreenSpan's assumption that massive fiat money creation, pouring unchecked into the inflated stock market, won't create a bubble and then lead to a big bang, is one not worthy of his obvious intelligence. There is no doubt that Mr. GreenSpan is intelligent, but there is also no doubt he is either a fool, or a man who is so fixated on popular political kudos, that he has sold out. Mr. GreenSpan is like the watchman who sleeps at his post and lets the barbarian horde sneak into the city. In my opinion, Mr. GreenSpan's name will have the same economic odium as Mr. Fisher, of 1929 stock market plateau fame, has in history. We just haven't written the history of the economic meltdown yet. Yesterday on the NASDAQ was merely the first publisher's proof.

Mr. GreenSpan must accept full responsibility for the stock market carnage. It happened on his economic watch. It happened because of the reckless money and credit creation policies he has followed. It will take more than a few "irrational exuberance" speeches to get him off history's hook. Mr. GreenSpan is a co conspirator with the most corrupt administration in decades, if not since Grant's. The first tremors of the coming economic earthquake hit the NASDAQ yesterday. There will be more. The gold law of excessive fiat money creation, credit and debt bubbles and speculative lunacy will be proven correct again. No one will listen now because they are misled by our leaders, steeped in their own greedy folly and oblivious to what is really going on in the world. Did you know that detestable, yet so culturally revealing, "So you want to be a millionaire" television show has an audience of nearly 30 million Americans? The pervasive greed of the United States will be her undoing. This is what really fuels the stock markets. Our American lust for quick fixes, instant riches and state sponsored gambling. Is their any real, substantive difference between the stock markets and a video poker game? Not anymore. State sponsored gambling has so pervaded the society that there is no distinction. The idea of waiting and working is held in either outright contempt or as a form of insanity. People who hold traditional values of any kinds are thought of as chumps to be exploited or mocked. The time is coming when they will be executed as threats to the state sponsored "new world order."

I will continue to warn of what is going to happen, to tell the truth for as long as I'm able. Americans inclined to blow me off as an unrepentant Y2k doomer certainly looked like a herd of wildebeests to me yesterday. How will they behave when the real stock market fun starts? Probably like a herd of wildebeests being chased by a pride of lions...right into an African river full of crocodiles. In a few days the second phase of Seattle's Reichstag riots will be allowed to play out in Washington, D.C. Economic turbulence and political instability are always a lethal combination. All the more reason for a sound money policy based on gold and silver, to stave off the economic reckoning that started Tuesday. For once the economy truly goes, the smooth tongued politicians will appear with their offers of peace and safety. We are in the new era; the system's fangs are being revealed a little bit more each day. Take care.


There is no worse bitterness than to reach the end of your life and realize you haven't lived. -- M. Scott Peck

A one-ounce gold nugget is rarer than a five-carat diamond.

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