Friday, May 22, 2009

1927-1933 Chart of Pompous Prognosticators

Oh brother - we are hearing similar things from the folks on MSNBC/CNBC and other cable news outlets regarding this stock market.... you know.... how things are sound - it's a good time to buy stocks - we've reached the bottom - we are seeing green shoots - etc. etc.

You have to look at this chart and the quotes that go along with it.
1- "We will not have any more crashes in our time." - John Maynard Keynes in 1927

2- "I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future." - E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928

"There will be no interruption of our permanent prosperity." - Myron E. Forbes, President, Pierce Arrow Motor Car Co., January 12, 1928

3- "No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment...and the highest record of years of prosperity. In the foreign field there is peace, the goodwill which comes from mutual understanding." - Calvin Coolidge December 4, 1928

4- "There may be a recession in stock prices, but not anything in the nature of a crash." - Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929

5- "Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months." - Irving Fisher, Ph.D. in economics, Oct. 17, 1929

Read the rest...

It's almost like listening to Steve Liesman or Joe Kernan or Carl Quintanilla on CNBC's Squawk Box or Ben Bernanke's pressers.

It's like deja vu all over again.