Comments on: The global economy has crashed: we need a comprehensive credit crisis plan http://www.creditwritedowns.com/2008/09/i-was-wrong-heres-my-new-plan.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: pej http://www.creditwritedowns.com/2008/09/i-was-wrong-heres-my-new-plan.html#comment-361 pej Tue, 30 Sep 2008 13:22:00 +0000 http://www.creditwritedowns.com/2008/09/i-was-wrong-heres-my-new-plan.html#comment-361 Cool, it's very rare to see someone mention his past errors and also claiming he was wrong. That's very cool.<br/><br/>The good thing about me is that I am always right (!!! ;-) ;-) ) so when I say that's cool, you can take it for granted.<br/><br/>I still think that you are wrong about something though: 777 down on the Dow was not a crash. It was just the expiration of the Bernanke+Paulson PUT, which I have mentioned here several times. There was a whole lot of bullishness excesses in the market, and the plan not going through, the stock market had to adjust to the normal level without the bailout plan flooding money in the markets. <br/><br/>The proof that the sell off was not a crash is that we are quite a nice recovery today. I think if it was a crash, the sell off would have continued.<br/><br/>Also note that the sell off might have been accentuated by the fact that no short covering could happen, since the SEC and the gov have decided that prices should only go up. Cool, it’s very rare to see someone mention his past errors and also claiming he was wrong. That’s very cool.

The good thing about me is that I am always right (!!! ;-) ;-) ) so when I say that’s cool, you can take it for granted.

I still think that you are wrong about something though: 777 down on the Dow was not a crash. It was just the expiration of the Bernanke+Paulson PUT, which I have mentioned here several times. There was a whole lot of bullishness excesses in the market, and the plan not going through, the stock market had to adjust to the normal level without the bailout plan flooding money in the markets.

The proof that the sell off was not a crash is that we are quite a nice recovery today. I think if it was a crash, the sell off would have continued.

Also note that the sell off might have been accentuated by the fact that no short covering could happen, since the SEC and the gov have decided that prices should only go up.

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