Tuesday, July 21, 2009

Lenny Dykstra Bubble Signal



What clues are there you may be in a bubble, ready to pop? In every market be it Stocks, Real-estate, Artwork or Tulip Bulbs there are always clues. Clues that you are nearing a turning point. A Moment in time where the trend begins to change. Those moments are often very hard to identify because the overwhelming majority believe, the trend up or down will continue. Thus you have your first clue your near the market peak when everyone wants to be involved. You need to start thinking about selling, when everyone else is buying. The second clue is when people with no prior background within that market become instant overnight gurus on the subject and seek to help you invest -for a fee of course.

Now, normally trends last for years...so do not assume it's over after just 1 or 2 years. Often, trends last for multiply years, even a decade. In the beginning few believe the trend will continue but by the end...everyone believes the trend will never end. So, what are your leading economic indicators that the trend maybe ending?

Well, it's that moment in time when a 25 year old computer programmer making $43,000 gets approved to buy 5 over inflated real-estate properties valued at over $2 million -to flip. It's that moment when your little sister has a Wall Street investment banker who wants to securitize her Lemon Aid stand revenue into an IPO.

And it's that moment in time, when a former tobacco chewing...street brawler...baseball great..with steroids in question tells you he's become a financial stock wizard -after just one year of study!

This my friends is called the Lenny Dykstra Bubble Signal. The first video is kind to Lenny. He's been coached by his lawyer to clean up his speech after other interviews captured Lenny as he really is on video. Just one year earlier he and his promoters, including CNBC Jim Cramer, had made a short movie (below) to pitch him as a former Baseball Star turned Financial Wizard. The goal was to attract investment money from other rich sports figures for his "Players Club Magazine". business and expensive investment advice subscriptions. The video was a masterful sales pitch for Lenny. Had Lenny been required to speak I doubt he could live up to the legend. I can understand why people would have invested with Madoff...but Lenny?



While Lenny's critics accuse him of being a con-man. I think that's to harsh. I'd bet he even had some good intentions. But he surely became overly confident he would become the next Donald Trump. Today, he and his lawyer want to portray Lenny as a "victim" of mortgage fraud. A "victim"?! Just one year earlier they wanted you to believe Lenny was a "Financial Wizard"!!

Lenny is emblematic of America's financial crisis and the American economic system built upon excessive debt spending. Lenny is no victim. Lenny is guilty. Lenny is guilty of living beyond even his wealthy means!



Warning: This video contains Lenny as is, unedited.

Just in the past two years, Dykstra has been the subject of at least 24 legal actions, including 18 since November. He's been sued by publishers and print companies, by three different groups of pilots and by a Maryland-based financial and litigation consulting firm that offered expert testimony on his behalf in an earlier lawsuit. The list of Lenny's carnage gets even more bizarre and must be read to be believed.

Look for the Lenny Dykstra Bubble Signal, years from now, to know if you are in the next market bubble or at the market peak.

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