Doomsday financial journalism at its best (or worst)

Paul Farrell at MarketWatch.com has written some pessimistic columns in the past, but his latest piece is the be-all and end-all of doomsday financial journalism.

Take it from the headline: "20 reasons America has lost its soul and collapse is inevitable."

Whew. Farrell makes Michael Moore look like a font of hope.

The column, published last Tuesday, has been among MarketWatch's most-read features since then. Maybe it's just a coincidence, but Farrell preceded by two weeks Hollywood's newest attempt to depict the apocalypse, the film "2012," which will premiere Nov. 3.

Farrell basically believes the capitalists have destroyed capitalism for good, an understandably popular theme (including with Moore) since the financial system went on government life support a year ago. Farrell writes:

A year ago, too-greedy-to-fail banks were insolvent, in a near-death experience. Now, magically, they're back to business as usual, arrogant, pocketing outrageous bonuses while Main Street sacrifices, and unemployment and foreclosures continue rising as tight credit, inflation and skyrocketing federal debt are killing taxpayers.

Yes, Wall Street has lost its moral compass. It created the mess, but now, like vultures, Wall Streeters are capitalizing on the carcass. They have lost all sense of fiduciary duty, ethical responsibility and public obligation.

Wall Street once had a moral compass? I'm trying to remember when, in my lifetime, that might have been true, but I'm coming up blank.

Farrell presents the "top 20 reasons American capitalism has lost its soul," but he way overpromises. I like reading about financial doomsday as much as the next guy, but many of Farrell's "reasons" are non sequiturs. His No. 1 reason is that "collapse is now inevitable." Wait -- we've lost our soul because we're going to collapse? Wouldn't it be more like we're going to collapse because we've lost our soul?

His No. 10 reason: "Oil and energy costs will skyrocket." Huh?

No End Times column would be complete without input from Marc Faber of the Gloom Boom and Doom Report, so Farrell dutifully rings up Faber. This is where it gets comical. Farrell writes:

Faber knows that capitalism is not working, capitalism has peaked, and the collapse of capitalism is "inevitable."

When? He hesitates: "But what I don't know is whether this final collapse, which is inevitable, will occur tomorrow, or in five or 10 years, and whether it will occur with the Dow at 100,000 and gold at $50,000 per ounce or even confiscated, or with the Dow at 3,000 and gold at $1,000." But the end is inevitable, a historical imperative.

How about that for a range: The end could come anywhere between Dow 3,000 and Dow 100,000.

Farrell, at least, gets a lot more specific about the timing of economic and market Armageddon. Sony Pictures, which is releasing "2012," should appreciate the plug, as Farrell writes:

Faber is uncertain about timing, we are not. There is a high probability of a crisis and collapse by 2012. The "Great Depression 2" is dead ahead. Unfortunately, there's absolutely nothing you can do to hide from this unfolding reality or prevent the rush of the historical imperative.

That's it, folks. Nothing you can do. Move along, into the bunker.

I'm assuming Farrell is about to retire. Because after you've written a column ending like that one, what else is there to say?

-- Tom Petruno

Comments

[b3sci]

This is one of your most entertaining columns.
Since there's nothing I can do to save myself, I'll stay in the market.

[JS]

Capitalism isn't dead. Neither is free enterprise. The problem is the economic monarchy that rules all. "He who has the gold makes the rules". That was the problem in 1776, too. It will take a similar effort to change the current status quo.

[pugtv]

I noticed that there are a lot less wackos on the street claiming the end of the world. It looks like they've morphed into something else that is just as annoying.

[SMRR]

Dow 36,000

[SMRR]

http://seekingalpha.com/article/168497-nouriel-roubini-one-on-one-more-doom-and-gloom?source=article_sb_popular

[Permabear]

The pessimists have been warning for years about the housing bubble, credit bubble, budget deficit, trade deficit and all the other unsustainable variables that would lead to an economic collapse. And the mainstream, represented well by Paul Petruno, all laughed at us. Well we were right then and pessimists are right to continue to warn about worse yet to come. The way the government is dealing with the fallout from the credit bubble is with more credit (i.e. government budget deficits and money printing). If you think that this will lead to a healthy sustainable economy, keep on dreaming. All the imbalances remain in place. Consumer debt, corporate debt, real estate debt, and now government debt are all at historic highs. Other countries are waking up to the vulnerabilities of the dollar and they are just a spark away from selling or at least no longer buying our treasury bonds, which is keeping all the parts together. Marc Faber and Paul Farrell were right before in predicting the crash and they continue to be right now in predicting a lot worse to come. Demean their warnings at your own financial peril.

[SMRR]

Petruno reiterates - Dow 36,000 - don't you hear me?

[Tom Petruno]

@ SMRR: Yes, we all hear you. Are you still confusing the Glassman I quoted with the Dow 36K Glassman? Or how else have I offended your market sensibilities lately?

BTW -- thanks for reminding me about Roubini on IU.com.

Tom Petruno

[pugtv]

Permabear,

How about impressing us by putting in a timeline for your prediction?

As it is, your prediction smacks of a sensationalistic copout.