I have to say, despite knowing how “out there” by conventional means much of Marketwatch’s and my own readership is, I am shocked at the results of our poll yesterday in which we asked, “Is the entire stock market (and the system it supports) completely corrupted?”.
I take offense to the idea that any of us have “radical viewpoints” on the political system status quo when the political system status quo is in the strange state it is today, where it’s neither a democracy nor a republic nor an economy built on socialism, nor communism, nor capitalism as currently defined. Bombings and 60,000 page health-care legislation written by lobbyists and drones and wars and energy subsidies and bailouts and secrecy and whistle-blower-persecution and Too-Big-To-Prosecute, all of which are seemingly “normal” today could be considered “radical” by both liberal and conservatives if you think about it.
At any rate, here are the results from the poll. More than 1300 of you answered and most of you, almost 9 out of 10 of the respondents, agree that there’s no saving the system.
Is the entire stock market (and the system it supports) completely corrupted?
- Yes, it’s legalized theft. (76%, 1,035 Votes)
- No, but it will be soon. (9%, 116 Votes)
- No, and the system can still be saved. (8%, 111 Votes)
- The system and the market are fine! (5%, 72 Votes)
- No, and Democrats can still save it. (1%, 13 Votes)
- No, and Republicans can still save it. (1%, 9 Votes)
Total Voters: 1,356
I want to be clear that I am in the camp that we can still save the system and our country’s middle class and the economy and our society. Really I believe that. Change is possible. And peaceful change through voting is possible. That’s why I write the things I do and have been as vocal about these things as I am. Even though I know it angers some of my readers.
My politics also used to anger my TV producers and my viewers. I spent the latter part of the 528 live news shows on Fox Business that I anchored from the Waldorf-Astoria hotel in NYC railing against the bailout culture and the Republican/Democrat Regime that was enabling it. I railed against Tesla when I interviewed their people. I asked every Republican and Democrat who voted for any of the bailouts how they would be able to look their constituents in the eyes and tell them that there was no choice but to cut social services for the elderly and poor after they’d found trillions of dollars of welfare for the banks. I even told my viewers that if they worked at one of those TBTF banks who were now officially on welfare that they should quit.
I refused to let my old friend Neil Cavuto call Jamie Dimon a “capitalist” when he was finishing interviewing me and previewing his next interview which was with, Jamie Dimon himself. I asked Warren Buffett’s son if Warren was part of the “Illuminati” because he owned all those shares in the banking system that needed bailing out and he was lobbying hard for it. I warned people about the coming market crash back in late 2007 and throughout early 2008.
In early 2009, I went on the Tonight Show with Jay Leno and told him the initial bailouts for GM and Chrysler would fail and that they were doomed for bankruptcy. I later signed a contract to become the Tonight Show’s first ever Wall Street Correspondent and spent five days with an awesome crew of five from their show filming hours upon hours of comedic commentary on Goldman Sachs and AIG and GE’s welfare needs. Imagine that NBC’s bigwigs never let that segment air! I never went back and filmed another segment for them though I sure do love and respect the folks at the Tonight Show.
I was mostly mocked and ostracized for my stances and commentary. Certainly by most of the mainstream pundits on Fox News and regularly by Jon Stewart on The Daily Show. If you search youtube and/or Google, you can find video on a lot of that stuff.
But there is a rising tide of awareness out there and the so-called “alternative news” sources are increasingly becoming mainstream as blogs, apps, news aggregators, twitter and facebook make the dissemination of the truth free for those willing to search a little bit for it. Here are my predictions for how some of this plays out from here for investors and traders.
1. The market will rally for another year and then top sometime in late 2014 or early 2015. Blow off tops can be wild and there could still be 20-30% upside before the next crash.
2. The next crash won’t be the final one. It’ll be a headfake that will pull in all the bears and scare out all the weak-handed bulls. Maybe we see the markets fall back 15-20% or so in a quick fashion.
3. Then comes the big spike back to where we were at the top.
4. 2-3% intraday swings become normal and the volatility spikes.
5. Interest rates rise despite the Fed continuing its endless QE.
6. Voters start putting in “independents” who start to fight the system’s corporate-sponsored big money culture. By 2020, the Democrats and Republicans split less than 60% of Congress and less than 80% of the Senate and a viable “independent” presidential candidate is in the works.
There’s my feet-to-fire best guess destiny that lies ahead for this market. I’ll be actively trying to monitor and ride those trends. I think there’s no other way to grow our wealth safely over the next few years. Unfortunately.