Yes folks, we’re all optimists, blind optimists. We dismiss facts, block reality, deny history, even recent meltdown. Not just Wall Street, also Main Street’s 95 million investors. Yes, you. We all want to be deceived. We want to trust in a better future, want the good news, optimism, happy talk, bull markets. We desperately want to forget the harsh reality of the recent past. And Wall Street and co-conspirators in cable TV know this too. They have you profiled (yes, psychologically profiled) as a “loser.” To them, you are a sucker for their happy talk.
Wall Street’s “Propaganda Machine” is feeding the media a steady diet of happy-talk. And the number one rule for ratings success is: “Know what the masses want and feed it to them.” Audience become sheep, cheer, want more. Today people are desperate for good news after the tragic lack of leadership the past few years. We got a dark reminder last week as two former Citigroup bosses (one a former US Treasury Secretary), admitted they “did not have a grip on what was happening” in their “too-big-to-fail” bank. Yet those bozos created a disaster and still pocketed hundreds of millions. And far more evil, their fat-cat successors are spending hundreds of millions of their shareholders’ money to defeat financial reforms that will prevent this from happening to them again.
Unfortunately this historical cycle’s doomed to reoccur. Except the next time it’ll end in another, bigger meltdown, and the “Great Depression 2” that the Fed and Treasury keep pushing downstream. So expect the “Propaganda Machine” to keep feeding sound-bites to the media, as this “Happy Conspiracy” between Wall Street, Washington and Corporate America keeps manipulating Main Street’s 95 million investors. It never ends. Here are three historical reminders:
“Propaganda Machine” in 2007-08 subprime meltdown
BusinessWeek, Kiplinger’s and USAToday reported on the false predictions made before the 2008 subprime credit meltdown spread rapidly across America and the world:
- Bernanke: “I don’t anticipate any serious [failures] among large internationally active banks.”
- Ken Fisher: “This year will end in the plus column … so keep buying.”
- Mad Money Cramer: “Bye-bye bear market, say hello to the bull.”
- Goldman’s Abby Joseph Cohen: “The fear priced into stocks is likely to abate as recession fears fade.”
- Barney Frank, “Freddie Mac and Fannie Mae are fundamentally sound.”
- Barron’s: “Home prices about to bottom.”
- Worth magazine: “Emerging markets are the global investors’ safe haven.”
- Kiplinger’s: “Stock investors should beat the rush to the banks.”
- Madoff: “It’s virtually impossible to violate the rules.”
Bad calls? Very bad. But Main Street’s a willing victim, we want to believe the happy talk.” We’re all trapped by this deadly disease, like sheep waiting to be slaughtered.
“Propaganda Machine” in 2000-2003 dot-com crash & recession
Back a few years ago we reviewed a 2003 book, Bull! 144 Statements from the Market’s Fallen Prophets, published during the 30-month recession, when Wall Street was losing $8 trillion in market cap. Here’s a few of America’s opinion leaders spreading their misleading happy-talk as the market slowly disintegrated for 30-months from 11,722 to 7286 in October 2002. Yet they prattled on. Unfortunately, many of these “Fallen Prophets” are still misleading investors as members of the new “Propaganda Machine.” (More)