You’re a sucker to believe Wall Street
Commentary: What were advisers saying five years ago?
By Mark Hulbert
Sept. 4, 2013
CHAPEL HILL, N.C. (MarketWatch) — You’re a sucker to believe Wall Street’s current mantra that another Lehman Brothers-like collapse is not in the cards.
I say that not because I think such a collapse is imminent, though I am less sanguine than many right now. The reason I say we shouldn’t believe Wall Street is that they were also telling us not to worry five years ago, right before Lehman declared bankruptcy.
Lehman Brothers filed for bankruptcy on Sept. 15, 2008. That, in turn, triggered the near collapse of the entire financial system: The stock market quickly entered into one of its worst two-month stretches in U.S. history.
If ever there were a time for Wall Street’s gurus to warn us of the impending doom, that would have been the time.