Dow 36000, Oil $300, Gold $3000…..

There are too many con men out of field waiting for the innocent yet naïve people, to suck out their hard-earned money. No matter it is in the stock market, real estate, commodities market and so forth.

History always tells us something. People who deny history would eventually lose out all. In 1999, when the euphoria of the stock came to the climax, two men, James Glassman and Kevin Hassett wrote a book titled “Dow 36000”. They predicted that Dow Jones Industrial Index will reach at 36000 anytime soon and latest in year 2005. If you think this two gentlemen are an ordinary man, you are totally wrong. Glassman, an investing columnist for the Washington Post, and Hassett, a scholar at the American Enterprise Institute who used to be an economist at the Federal Reserve. Because of their background and title, many people fall into the prey that “they are intelligent people, what they say makes sense”. So, they pour their money into the stock market when the market was at its peak. The result, they lost US$8 trillion (YES! It’s US$8,000,000,000,000 !!!) With this amount, you can buy 3,200 Petronas Twin Tower in Kuala Lumpur, Malaysia. (used to be the world’s tallest building in the world)

Stepping into the beginning of 21st century, similar phenomenon will appear. From time to time, someone will come out and shout to you:” Oil will reach to $300 per barrel!”, “Gold will hit $3000 per ounce!”. When the euphoria shift to commodities market, you will notice that some magazines will announce “The Death of Equities” and someone will author the book titled “Dows 360”. When this moment arrives, grab as many as you can from the stock market. Of course, choose only “good” stock.

What is a bubble? You won't know about it until it's already happened...and then it's too late,,,

Myth of ex-Fed Chairman

If you think Mr. Alan Greenspan has "Invisible Hands" to safeguard the economics, think again. As a role of Fed chairman, he should be act more like an economist, but he seem is more like a political animal. By printing more paper currency during his 18 years administration, he seems like no other solution othen than this. Find out more about his myth, click here.

Good Bye Mr. Alan Greenspan

31st January 2006 marked the fall of the old era and welcomed with the new horizon – Retirement of Federal Reserve (Fed) Chairman, Mr. Alan Greenspan who served the post for 18 years.

For nearly 2 decades, he was treated as a man of last resort whenever there is a economic crisis. The crash of Dow in Black Monday, October 1987, 90/91 economic downturn, the collapse of Long Term Capital Management (LTCM) in October 1998, the aftermath of Tech Bubble after 2000 are few examples. He believed to have magic hands who could turn an economic downturn back on track by using his monetary policy of manipulating key interest rate. The whole world is lead by him whether the economic will be “soft landing”, “hard landing”…etc. The blind faith of whole world that putting on him made him as the “God” who can rescue the world whenever there is something happen. His retirement made us worried that his successor could safeguard us when there is something happen in the future.



While Mr. Alan Greenspan might have his contribution, we need not overstate it. Take an example, few days before the meeting of the bankers to save LTCM, Alan Greenspan had testified to the House Banking Committee that ‘hedge funds were strongly regulated by those who lend the money. With the LTCM debacle, the belief that Alan Greenspan knew whereof he spoke, a central tenet of the Fed’s status, had been put in hazard.