2009's Biggest Wall Street Lies

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2009's Biggest Wall Street Lies The market staged an impressive rally this year, but it was predicated on some very big lies, as opposed to solid fundamentals or the beginnings of a real recovery in the U.S. economy.

The biggest lie investors were fed? That, statistically, the recession "officially" ended in Q3 when we saw 3.5% GDP growth. Sure the Bureau of Economic Analysis revised their number substantially in November, saying we only saw 2.8% growth, but this was growth nonetheless ... according to the statistics.

In the face of Depression-level unemployment, a worsening housing market and weak consumer spending, statistics don't mean much. What, you heard that unemployment bottomed at 10%, the housing market was recovering and consumer spending was picking up again? More lies.

The recession is not over, and once you know the other Wall Street lies, it should be clear that you should expect nothing more than a flat recovery in the second half of next year. And that's the best-case scenario. It's very likely we may, in fact, see a double-dip recession.

It seems that Wall Street has yet to catch on to this fact. But when that happens, look out. Chances are that when they sit up and take notice, they will head for the exits (or a place to cash their bonus checks before they bounce). Don't get left in the wake -- take note of these lies and, more importantly, how you can profit from them once the wool has been removed from your eyes.

Click on each lie to learn more.

Lie #1: The Stress Tests Provided Transparency in the Banks
Lie #2: New Accounting Rules Show Banks Are All Right
Lie #3: The Recession Has Officially Ended
Lie #4: Unemployment Will Bottom Around 10%
Lie #5: The Housing Market Is Recovering
Lie #6: The Credit Crunch Is Easing
Lie #7: Consumer Spending Is Returning to Normal
Lie #8: The Fed Only Buys AAA-Rated Bonds and Securities
Lie #9: The U.S. Dollar Is Dead
Lie #10: China Experienced Double-Digit Growth in 2009
Lie #11: The Palm Pre Is the Ultimate iPhone Killer

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Last updated: August 01, 2010: 01:38 AM

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