Time bomb to market meltdown ticks louder
Commentary: Prepare for zero growth, no recovery, resource wars
By Paul B. Farrell
Jan. 18, 2013
SAN LUIS OBISPO, Calif. (MarketWatch) – Mr. Buffett, “do you think there will be another bubble leading to a huge recession?” asked the interviewer. Oh yes, in fact, “I can guarantee it.” Guarantee it.
The interviewer shook his head: “Why can’t we learn the lessons of the last recession? Look where greed has gotten us.” Then with one of his familiar impish grins, the great master replied, “Greed is fun for a while. People can’t resist it.” But “however far human beings have come, we haven’t grown up emotionally at all. We remain the same.”
Warren Buffett made that prediction shortly after the 2008 Wall Street banking meltdown. The world’s third-richest billionaire personally guaranteeing another bubble … guaranteeing America another market meltdown … guaranteeing the world another “huge recession.” Now here we are four years later, and the ticking time bomb gets louder as we keep watching an avalanche of predictions echoing Buffett’s warnings.
Deepak Chopra mentions Buffett’s on-air prediction in the “Shadow Effect,” a brilliant bit of psychology that helps explain why the investor’s brain is trapped in denial, incapable of hearing a warning of a market and economic collapse.
Uncle Warren must be chomping at the bit, sitting on a cash hoard, more than $20 billion, waiting to rush in, buy when the bottom drops, exposing millions of investors lulled back by those pre-2008 delusions about a new long-term bull market.