The market is about to throw Buffett under the bus.

Warren Buffett was out today publicly proclaiming how he just bought the dip.  This is very very bad timing by Buffett and it is probably one of many mistakes he will be making as he tears his investing legend status down over the coming years.  When Buffett had the credit wind behind his back (for most of his life), making money was not difficult for someone with his insight and discipline.  But he was winning mainly because of the increase in the money supply due to credit expansion.  He never had to deal with massive global credit collapse and so he will not see it coming.  Either that or he knows what is coming and is leading the sheeple to slaughter.

This reminds me of an historical event where the bankers jumped in to try to save the markets on Black Friday during crash of 1929-'32.  The more loudly they stood in the center of the trading floor screaming their love of the stock market (buying steel company shares above the ask...), the more worried and skittish the markets became.  After all, a healthy market does not need loud salesmen, does it?

Prechter wrote in Conquer The Crash that many of today's highly respected money-men would get their reputations crushed in the coming collapse.  It looks to me like Buffett is trying to be in that group.  Wait until a 3rd of 3rd hits - DJIA down 500 points in a day.  Then we will see all of this ridiculous optimism turn to massive fear.