Use access key #2 to skip to page content.

starbucks4ever (86.36)

An alternative introduction to goldminingXpert's book



October 07, 2009 – Comments (4)

How about this version? Less elegant, perhaps, but far closer to reality.

"Just as September 3, 1929 marked the end of a long and prosperous era in American history, October 9, 2007 marked the end of another era. While the post-cold war economic boom is associated with 4 major banks - GS, JPM, MS, and LEH, the post-post-cold war depression is associated with only 3 major banks - GS, JPM, and MS. This monumental shift has involved a radical change in asset valuations. On October 9, 2007, the S&P index topped at 1500; 17 months later it traded at 666 and a change. Looking back at this drama from the comfort of 2009, one cannot suppress his amazement at the extraordinary job done by GS to crash the market that hard.

Just as May 9, 1945 marked the end of a long and painful era in American history, Mar 9, 2009 marked the end of another era. While the post-Lehman economic bust is associated with a great recession, it brought more than that. Ending the era of GS growth and prosperity as a humble inwardly focused free-market economic power that began after the end of the Civil War, the transition GS embarked upon following 2009 brought it into a new period of global supremacy as its financial might ran the world and its suddenly dominant military used the threat of overwhelming force to keep any and all potential enemies at bay. In the ashes of the economic depression following 2009, the great GS leviathan state was born. 

One obvious beneficiary of this transition was the stock market in general, and the US economy in particular. The need to drive down stock valuation was now gone. LEH was dead, and GS supremacy was now uncontested. The market could now regain its previous heights, so it did just that. And this marks the beginning of the era that had ended before on Oct 9, 2007. It also marks the end of my book because once the causes of this boom-to-bust cycle have been properly addressed, there was nothing more to write about."


4 Comments – Post Your Own

#1) On October 07, 2009 at 11:12 PM, goldminingXpert (28.73) wrote:

Pretty funny up until the last paragraph, where you ran off track. You seriously think GS supremacy is good for the economy?

Report this comment
#2) On October 07, 2009 at 11:17 PM, starbucks4ever (86.36) wrote:

The general answer is no, but in the particular situation when the entire economy is now part of GS, I guess it must be true :)

Report this comment
#3) On October 08, 2009 at 12:09 AM, dragonLZ (91.79) wrote:

Zloj, your book would be a bestseller, GMX's not so much...

Or in other words, a red thumb on GMX's book, 3Y or so.

p.s. Who wants to buy a book from a guy who called the biggest bull market ever "just a bear market correction"?...

Report this comment
#4) On October 09, 2009 at 12:11 PM, DaretothREdux (51.78) wrote:

I can't believe they deleted your blog....I thought Obama was supposed to be the "post-racial" prez....but the Admin is happy to play the race card anytime it further their agenda.


Report this comment

Featured Broker Partners