Looking back at various events, I find that markets have ignored authorities' warnings in MANY MANY instances and suffer from such disobediences! Followings are some examples:
2001: Tech bubbles: Mr. Spanny said stock markets are exuberance n a few months later, stock markets tumbled.
2006-2007: Mr. Spanny and Benny warned of credits too loose, risk is way too low and beri umcomfortble. Now in 2007 to 2008, subprime dent all markets.
There is still one warning that has fallen on deaf ears: OIL is well supplied, inventories are all in record levels. But, people still piling into them... hmmm.... are we going to see the same thing play out? disobedient boys n girls will get canned later?
Of course, there are political and so on reasons for the price premium of oil. but is it warranted? A bit of premium may be reasonable but 50%?? I don't know, time will tell us. OPEC has time and again tell us that the world market is WELL supplied. Do u want to take heed or ignore? The choice is yours.
You are welcome to add more tales of warnings NOT heeded and the players got burnt. Properties in SICKapore in 1993?
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Actually it depends on who you define as authorities. All of them had their own agendas, so what they said will be just an extension of their selfish motives.
For example, commodities like oil. OPEC is saying that market is well supplied and it's those speculators that are bidding up the price, not because of a lack of supply. Well, I won't say they are wrong. But perhaps their selfish motives is to continue to profit from this high price of crude oil as long as they can, as long as consumers can pay.
Jim Rogers on the other hand, will bet on commodities. While he didn't specifically mention that oil is bullish, he did mention agri. commodities are going to be bullish, till 2010 or 2020 (can't remember). What's his motives then? Perhaps he already bought in, so that sly fox will dispose of them while he enters another round of equities just when nobody is bullish on them. He wins both ways by manipulating the market with his 'expert' advice. Who knows?
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