Treasury Sec. Paulson: "Market Failure"

Financial Market Stress

Last Friday, I wrote an article in this blog advising fellow traders that the financial markets' turmoil is increased by government interventions. Now, in the following article on marketwatch.com, others are echoing the same sentiment. In addition, Treasury Sec. Paulson is traveling the country to promote his plan to help troubled mortgage borrowers. He startled me when he said that without this intervention, we could experience "market failure". I could hardly believe my ears that he would sound so alarmist until CNBC printed the same at the bottom of the screen, confirming to me that I had not heard him wrong.

All I can say is that I'm glad I'm NOT trading stocks or stock futures right now. I am going to build my short positions in the financials, housing, and some emerging markets ETFs.

From marketwatch.com this afternoon:

"And financial structure stress news is the worst since the early 1970s (I know: I was there). The Bush administration's nationalizing of the mortgage crisis has disillusioned even solid loyalists such as The Gartman Letter, which this past week formally abandoned support of the White House.

What happened? Bill Murphy of the manipulation-minded Le Metropole Cafe had an answer, in fact two:

Thursday headline: "Shoot the Messenger."

Friday headline: "They shot the Messenger yet again." See Website

No one should dismiss this point of view without reading Le Metropole's powerful Friday article from a source called Deepcaster: "... important new data releases from the BIS (Bank of International Settlements The Central Bankers' Bank]) the U.S. Bureau of Labor Statistics, and the U.S. Federal Reserve are quite astounding. They reflect a considerable acceleration of market intervention ... these developments dramatically increase systemic risk ..."

Here is the entire article. There are some startling things in it that are worth the read:

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