Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Rude Awakening For Stock Market Investors 2010

Stock-Markets / Stocks Bear Market Jan 25, 2010 - 10:09 AM GMT

By: Martin_D_Weiss


Best Financial Markets Analysis ArticleThe heyday of the Bush-Obama bailout frenzy is coming to an end.

The bailout’s base of public support, tenuous from the outset, is collapsing.

Its chief architects — Treasury Secretary Geithner and Fed Chairman Bernanke — are politically dead or dying; its loyal opposition — Obama adviser Paul Volcker and FDIC Chairman Bair — is gaining rapidly in influence.

Suddenly and with growing momentum, America is shifting into a brand new phase of the crisis …

The Rude Awakening of 2010

You and I knew all along; we were not among those sleepwalking through the storm. Nor did we ever support those who stumbled from one ill-conceived government rescue to another.

We knew all along that TARP was a classic financial blunder and ultimate moral hazard: It rewarded guilty bankers, while shafting innocent taxpayers now stuck with the bill.

We knew all along that the Fed’s zero-interest-rate policy is a ticking time bomb: It subsidizes and stimulates high-stakes gambling on Wall Street, while it robs America’s prudent savers of nearly every penny they hoped to earn in interest.

We also knew all along that the original cause of the housing bubble was Greenspan’s money-printing machine — and that Bernanke’s new machine has been running at light speed by comparison.

Throughout this entire crisis, we could plainly see the emperor had no clothes.

What’s changing is that, now, many others — including some who engineered the bailouts in the first place — finally see it too.

That’s why …

  • Public opinion regarding the president’s handling of the federal deficit has nosedived. Back in March, 52% of voters approved and 47% disapproved. Now, the numbers have reversed dramatically to the opposite side — only 36% in favor, 62% against.
  • Voters say they want the deficit reduced even if it hurts the economy. In an NBC News/Wall Street Journal poll, they were asked if they’d prefer (a) to boost the economy even though it meant larger deficits, or (b) control the deficit even if it meant a tougher recovery. Only 31% chose boosting the economy; 62% chose controlling the deficit.
    Martin D. Weiss, Ph.D.
  • Paul Volcker — previously shunned and ignored by most of the Obama team — has re-emerged from the shadows and regained the limelight. He’s looking over the president’s shoulders. He’s pressing the administration to get tough with Wall Street. And ultimately, he could push Obama to change course on key aspects of the bailouts. 

Right now, Paul Volcker is the only person on the team not associated with the bailouts and having the credentials to fight this battle.

Whether he will retain that standing — in the heat of battle or in the wake of a renewed banking crisis — remains to be seen.

But for now, his reappearance on the front lines is a metaphor for the sweeping mood change among voters and a possible policy shift at the White House.

He will help attack big commercial banks that have played Russian roulette with your hard-earned savings.

Martin D. Weiss, Ph.D.

And he will push the drive against big investment banks that have transformed themselves into gambling casinos.

But, alas, there is still no one of stature standing up to the biggest public nemesis of all — the government itself.

There is no single organization strong enough to stop Washington from sacrificing our children’s future on the altar of a false prosperity. No one able to restore the prudence and balance that can sustain our greatness over time.

What I’m Doing Right Now

A half-century ago, my father, J. Irving Weiss, founded the Sound Dollar Committee to help President Eisenhower balance the federal budget.

Thanks to Dad’s efforts, an estimated 11 million postcards, letters, phone calls, and telegrams poured into Washington and state capitols, demanding an end to federal deficits.

It was an avalanche … and it helped Eisenhower deliver the only true balanced budget of our lifetime.

Today, I am Chairman of the Sound Dollar Committee, and I will soon be launching a national effort along similar lines — adapted, of course, for today’s times.

Stand by for more information and how you can help.

In the meantime, your best offense is a strong defense — for your own portfolio and financial well-being.

In the stock market, just the perception of this political sea change — that Washington is going to be stingier with stimulus and more realistic about rescues — has been enough to knock the Dow for a loop.

To the degree that Washington actually DOES back off from fiscal stimulus, stocks are bound to sink a lot more.

So my recommendations are unchanged:

Caution! That means, at most, SMALL positions in the stock market, focusing on sectors and special situations that are most likely to buck the broad market trend. Plus, it means plenty of cash equivalents — DESPITE the miserably low yields.

Overloaded with stocks? Then cut back substantially.

Don’t want to sell? Then hedge with inverse ETFs.

Good luck and God bless!


This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in