Funny Thoughts

1. I was half-right (half-wrong). Bailout was approved. Market did not crash. But surprisingly, the market was in the red. Well, I'm not smart enough to understand the whole economic bulls***. Maybe people are beginning to realise that this bailout is going to be ineffective after all.

2. I find it funny that how come Paulson is the main guy pushing for all these things and Ben Bernanke is taking a backseat from all these. I see Paulson speaking more than Ben Bernanke, in fact I see President Bush speaking more than Ben Bernanke. Don't you find this funny? The studious and great researcher of the great depression, Ben Bernanke, is not speaking much. Let me tells a story.

Disclaimer: This story is fictitious. It does not depict any real life story or any real person. Any similarity between characters or stories in the real world is purely coincidental. (Hope, this will cover my backside)

Scene 99: Ed's Meeting Room

Characters : Paul Bear's son
Uncle BB
Mr. Z (he is not a friend of Mr. X, mind you)

The meeting begins...

Mr. Z: Alright, we all know the truth, I think... So how are we going to save this piece of s***? Come on Uncle BB, you have the most profound knowledge of great economic crisis in history. Say something and do something!!!

Uncle BB: You want the truth or lie?

Mr. Z: Truth please.

Uncle BB: We can't do anything for nuts. Letting them go bankrupt is inevitable and probably the only way.

Mr. Z: Are you serious?

Paul Bear's son: Lieeeeeeeeeesssssssssssssssssssssssssssss.......... Honestly we can do something.

Uncle BB: There is nothing we can do. Credit expansion had a long history all the way back since world war II. There is no way we can salvage the situation.

Paul Bear's son: Since the financial system will collapse eventually, why not try something. Maybe it will work. It has worked for 60 years. I mean, who knows. If you don't want to do it, leave it to me man.

Mr. Z: Paul Bear's son, are you sure you have a plan?

Paul Bear's son: Well, Uncle BB doesn't have one.

Uncle BB: I'm sick and tired of this. Do whatever you want.

To Be Continued.....

Well, if you get what I'm trying to say, then it is very good. I shall not be too explicit over here.

3. For the first time, I have seen someone raised the word "Deflation". Surprisingly, gold is down, oil is down, stocks are down. I still have a weak case for gold in times of deflation. Anyway, deflation is a freaking long process so maybe some economists will start to enlighten us soon.

Market Stand

Short, sell, hold cash. You know me. Until we see some panic in the market, I don't think we have seen the bottom. Again, I wish to witness a stock market crash. By the way, the ban on short selling will be over on the 8 Oct. Maybe, just maybe, we will really see a black friday.


I got wiped out personally in 1968, which was the last really crazy, silly stock market before the Internet era….After 1968, I became a great reader of history books. I was shocked and horrified to discover that I had just learned a lesson that was freely available all the way back to the South Sea Bubble.

Jeremy Grantham