WSE Editor Adler Has Emotional Meltdown

This is so stupid. Even if every house now on the market were sold, and all those waiting to be sold were sold, this would not change the oversupply one iota. As long at that oversupply exists we will be in an endless spiral of never ending price declines. The only way to eliminate the oversupply is to bulldoze about 3 or 4 million housing units.

Nobody, but NO BODY seems to get that basic fact.

Oh sure, you could eliminate the problem by an increase in end user demand.

Yeah, right, like that’s going to happen any time soon. Maybe when we start emerging from the depression in the year 2025.

This makes me sick. It could have and should have been prevented, but Greenspan sat there with his thumbs up his butt hole letting fraud, corruption, and thievery be the guiding principles of financial market regulation.

You’re goddam right I’m mad as hell.


I think I’ll move to Pago Pago.

There is such a place, isn’t there?

OK, so some in the mainstream are starting to realize that Greenspan was at best a buffoon, and at worst an evil, self-serving charlatan and fraud. He was in charge of the development of the insane bubble that led us to where we are now, and to the hell toward which we are heading.

But why isn’t anyone talking about the fact the Henry Paulson was up to his eyeballs in the middle of creating the crap that is blowing up all around us, while receiving and passing out hundreds of millions of ill gotten gains to his buddies while at Goldman Sacks and Pillages.

Talk about putting the fox in charge of the hen house. What the hell was wrong with us that we allowed this to happen, that so many otherwise normal everyday people took part in this greatest of all frauds in the history of planet earth?

What is wrong with our society that we could have come to this, where we would willingly put crooks and thieves in charge, let them make the rules, and then play along like it was all just fine.

And the media? The media stood on the sidelines cheering it all on. Where were the journalists? JOURNALISTS? HA. The financial media has become nothing more than a giant informercial, a bunch of ignorant, know nothing shills. How many times has Bob Pissonme called the bottom in the housing market, only to reverse himself today. The guy is the son of a real estate developer fergadsakes. Pissonme himself taught rahrah real estate courses.


We deserve what’s coming. We absolutely deserve it. And it makes me sick, because it was all totally foreseeable and foreseen by legions of honest analysts who were laughed at at every turn.

The problem is, we don’t get the last laugh, because there is no last laugh, only ruin and misery.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

  20 comments for “WSE Editor Adler Has Emotional Meltdown

  1. ter
    March 29, 2008 at 12:42 am

    can’t get to Today’s Markets subscriber article. Simply get bounced between two summaries. Your bulldozer idea reminds of the depression (and other times) solution to low prices for cattle, eggs, and milk:
    shoot the calves, slaughter the layers. Results therefrom were wasteful: temporary gluts of veal and fowl, and less efficient supply, but sometimes prices rose afterwards. Perhaps HUD will seek counsel from Agriculture Department.

  2. John T
    March 29, 2008 at 2:43 am

    Amen Brother!

  3. March 29, 2008 at 8:02 am

    The weekend Market Update has not been posted yet. It will be posted shortly.

  4. eah
    March 29, 2008 at 9:35 am

    …fraud, corruption, and thievery be the guiding principles of financial market regulation.

    No no no, it was thinking outside the box, financial innovation helping families realize the American Dream. How dare you disparage their noble and high-minded efforts.

  5. Debtpocalypse
    March 29, 2008 at 10:34 am

    Truer words were never spoken.

    Greenspan is the most irresponsible pondscum pig of a public policy authority the U.S. has ever seen. He is our John Law. He is our ruin.

    Bravo, Lee. Bravo.

  6. Winston Munn
    March 29, 2008 at 10:46 am

    The Desciples of Leo Strauss

    Whenever extremists control a society, that society eventually crumbles. Make no mistake that the cabal that has led the U.S. for the past 8 years is as extreme in their self-righteous views as any Mullah in Afghanistan.
    They are the desciples of Leo Strauss.

    This cabal has no room for self-doubt. Theirs’ is the thinking of polarization – division, not unification, purveyors of the creed that only one way is right, that the only compromise allowed is for you to acquiesce to my demands.

    This black-and-white mindset is the base reason for Rush, O’Reilly, Fox News, and an absent Fairnesss Doctrine – one-sided reality and one-sided reasoning.

    This thinking is the reason for the declaration that: “You are either with us or with the terrorists.”

    The inability to understand the complex and thus reduce it to simplistic black-and-white is an admission of lack of intelligence. It may temporarily make one look superior to point fingers of blame, but in the end nothing of value is accomplished.

    Neither the extreme right nor the extreme left has all the answers – the world is made in shades of gray.

    We deserve better leadership. We should demand better leadership.

  7. Crimson Ghost
    March 29, 2008 at 12:26 pm

    Bravo Lee!

    Perhaps we as a society are getting our just deserts for the incredible horrors and slaughter we have inflicted on the hapless Iraqis.

  8. TerryC
    March 29, 2008 at 3:17 pm

    Goldman Sacks and Pillages — first time I’ve heard that one. Love it.

    On a different note: You seem to have enough brains on this board who care about more than just themselves and have the wherewithal to do something about it. If you want to start a new forum why don’t you dedicate it to a list of solutions? We could all chip in, iron out the bugs and submit the finished product to one or all of the candidates. Even if Nader is the only one who picks up even one of our suggestions, it will be more than what we have now. I’d like to reinsert two adjectives into the discussion that have gone the way of capitalism and the Republican party: “enlightened” self-interest, and “creatve” destruction. Right now, we’re just a few of millions who are complaining. They’re not listening. (unless they’re been reading your blog and that’s why they decided to keep their info even closer to their chest) Maybe if we tried a different tact?

  9. Denzel
    March 29, 2008 at 3:29 pm

    What I am going to hate is when the same financial media will ask in the not too distant future is why ‘no one saw this coming’, as if it was unavoidable and caught everyone by surprise, just because they were too conflicted not to report the facts.

    We cannot let his happen.

    While many of the culprits are saying, “now is not the time to place blame,” it is time. The time to point fingers is now, not later when no one will be held accountable. Of course that is what the culprits want, no accountablility. Phill Gramm, Paulson, Greenspan, the whole lot need to be exposed.

    I hardly ever go to MarketWatch…it is one of the most misleading websites around. Oh sure, there are one or two good columnists, but for the most part that site is rancid. Always putting a misleading positive spin on stubborn facts. If the Dow Jones fell 300 points miday, but ended down ‘only’ 290 points, the headline would be, “Dow finishes off worst levels,” or “Dow rallies in final minutes.” You can include CNBC in this as well and most financial AP headline writers. And this has been going on for years…they don’t know how to report it any different. This must be the most uninformed and mislead public in the last 80 years.

    CNN has a Mortgage Meltdown special tonight. I’m just curious how they will spin it; probably finishing it with something like, “the good news is that homes are more affordable, blah, blah blah,” without acknowleding stagnant wages for the middle class.

  10. John
    March 29, 2008 at 3:31 pm

    Lee, Lee, Lee. Take a deep breath. Remember, that guy who said “I’m not gonna take it anymore” crashed into a windmill. It wasn’t a good ending.

    I’ve never understood why you people that follow (and understand) the financial markets, AND people like you specifically that understand there’s something wrong with “the herd’s thinking”, don’t create an Alternate Herd Mentality Mutual Fund (using the AHM index). If you could establish some quantifiable index based on the “Dude, what can happen” people (many of whom I work with), then plot this over time. Using the various components of the index, you should be able to predict when to get into “the next sure thing” and when to get out. You’d be a bazillionaire. And, even better – you’d get your own TV show.

    Now, yes, I understand we can’t just take ALL the “Dude, what can happen” people, we need to throw out the ones that are simply stupid (which would also include most of the people I work with). We’d only index the smart “Dude, what can happen” people. This would make the Mutual Fund an actively managed fund (I’m fantasizing about fees here).

    Instead of bashing your head against the forces of nature, meaning: the NATURAL inability of the peasants to think for themselves, use this fact to YOUR advantage and manipulate them. Or, as any good corporate e-mail in my company would put it: leverage your tablesteaks, increasing the synergist harmony of our core competency in a going-forward space.

    When you’ve attended bazillionaire status, you’ll be declared KING, and you’ll rule the world. And the people that understood the e-mail would get promotions, of course.

  11. March 29, 2008 at 3:56 pm


    All journalism exist within the “morals” of the society. Our society brands journalists that question authority as traitors – or WORSE: liberal, “the liberal media”.

    Lots of people smarter than me have written about why the media is specifically mentioned in the constitution. The main reason (in my simplistic understanding of these articles) being that, ONLY a free press can (or, even will) question the nobility – and the other slime – that are routinely elected by the peasant voters. “The founding fathers” understood this (they were politicians, after all). If it’s understood (admitted) that ONLY a slime-bag can win an election (who ELSE, after all, would know enough OTHER slime-bags to get enough money to win one), then the media’s importance is elevated. However, in the US, most people can’t admit that “their elders” actually ARE slime, MUST be slime, and – therefore – you need the media to watch them, and question everything they do. How many times have people you’ve known say some like: “All the media does is criticize our leaders”? That, of course, IS their job (unless you count Faux News).

    Now, however, the US media is afraid to question ANYBODY in authority. Otherwise, they’re just a bunch of “liberals”.

  12. z
    March 29, 2008 at 9:53 pm

    but arent the 80% who still have jobs and fixed mortages partly paid, still ok?, despite the 20% who have lost their jobs and had their mortgages reset and lost those houses?

    and maybe, if house prices go way down, 50% will be upside down, but still ok as long as they stay, and don’t try to sell the house for years.

  13. Boat 52
    March 30, 2008 at 9:14 am

    If anyone thinks the current mess we are in is bad, just wait a few years and allow more Bernanking. Th reason most folks don’t react to surging prices is purchases are made with credit cards. Actual cash, Federal Reserve notes, are part of the underground economy and a great deal of these notes change hands abroad. Without counting out cash currency, the price impact is greatly lessened. In the great inflations of the past, credit cards didn’t exist and folks needed to carry the cash. This time, it will be electronic entries.

    I readif the gold that is held by the U.S. Treasury were to be priced to support demand deposits in banks, its price would be above $12,500 per ounce. It would be interesting if someone could chart this for the past decade and as the country goes forward.

  14. Hank Jestor
    March 31, 2008 at 9:37 am

    If you are 50% upside down in your house and still making payments, I have a house in So Cal for you.
    You will probably not see that value for another 15 years.
    Only a fool owns a house without 20% equity. That is why banks require it. It means you can’t afford to keep your house.

  15. karen
    March 31, 2008 at 12:51 pm

    well, i just attempted to read Bill Gross’s April Outlook and I’m having a meltdown myself. Has he gone daft?! How is the government supposed to halt home price declines “in order to revive the U.S. economy?” (which translates into promoting consumerism/consumption.)

    “Authorities must act quickly, with a shot of adrenalin straight to the heart of the problem: home prices.”

  16. March 31, 2008 at 1:53 pm

    Sounds like he has lost his mind… and is sitting on a crashing MBS portfolio.

  17. karen
    March 31, 2008 at 2:08 pm

    yes, he always is talking his book… the master pitch-man…

    last month with his clever old maid analogy he wrote:

    “And if Washington gets off its high “moral hazard” horse and moves to support housing prices, investors will return in a rush. PIMCO wants to sit at this more attractive return table – to provide an attractive return on your money (no matter what the asset class) as well as a return of your money. No Old Maids. No silicone AAA ratings.”

  18. MadderHatter
    April 1, 2008 at 3:39 pm

    I think all of America is angry right now.

    I never took out a refi loan. Home repairs came out of pocket. I paid every red cent of my mortgage and every red cent of interest that was involved (well, not all, since I was often making double payments but there was no prohibition against that in my docs). Never used my dwelling as an ATM. Ate lots of beans and mac and cheese, worked my butt off and got her paid off a couple of years ago.

    Now I am being told that my reward is to pay for the foolishness of Greenspan, Bernanke, Paulson and the people who did cash outs and refis until the cash cow finally keeled over and died. Now they are homeless.

    One thing I have noticed is that my standard of living did not increase. About the time I paid the mortgage off, fuel began to rise. Then food. Then taxes. I think that I have actually lost ground overall.

    That’s what working hard in America gets you nowadays; the opportunity to pay for the mistakes and greed of others!

    I say give the houses away to anyone who needs them and bulldoze that bubble-building inflation-making machine known fondly as the Federal Reserve. That bunch is sucking me dry!

  19. April 1, 2008 at 3:45 pm

    It’s very hard to be optimistic about this country when you look at what is going on in the upper echelons of government, business, and the media.

    We are living in the fall of the Roman Empire and it’s not pretty.

    I guess the real question now is, where can we find any hope for our future. It’s too late for those of us of a certain age, but for our children and grandchildren. Where in the world should we point them as a land of fairness and opportunity?

  20. MadderHatter
    April 1, 2008 at 4:31 pm

    Maybe to the “secret republic” sitting in the middle of America??

    The Lakota Indians revoked all their treaties with the US and reclaimed their land. No taxes there, and they are producing their own driver’s licenses and passports. I have found only one other person that has heard about this since it happened.

    I cannot imagine why CNN didn’t do a huge story on this one, can you? (Maybe because there would be a huge stampede of folks moving there? Taxpaying folks?)

    I am giving serious consideration to selling out and moving there. I would rather live in a mud hut and draw water from a well than finance one more second of this stupidity…

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