Rapture verdict ad 1
The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins
Lear Capital: The Best Source for Buying Gold & Precious Metal Investing

Recent Posts

Michael and Meranda's New Show

Michael On Television

Economic Collapse DVD The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

If Anyone Doubts That We Are In A Stock Market Bubble, Show Them This Article

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Bubble In Hands - Public DomainThe higher financial markets rise, the harder they fall.  By any objective measurement, the stock market is currently well into bubble territory.  Anyone should be able to see this – all you have to do is look at the charts.  Sadly, most of us never seem to learn from history.  Most of us want to believe that somehow “things are different this time”.  Well, about the only thing that is different this time is that our economy is in far worse shape than it was just prior to the last major financial crisis.  That means that we are more vulnerable and will almost certainly endure even more damage this time around.  It would be one thing if stocks were soaring because the U.S. economy as a whole was doing extremely well.  But we all know that isn’t true.  Instead, what we have been experiencing is clearly artificial market behavior that has nothing to do with economic reality.  In other words, we are dealing with an irrational financial bubble, and all irrational financial bubbles eventually burst.  And as I wrote about yesterday, the way that stocks have moved so far this year is eerily reminiscent of the way that stocks moved in early 2008.  The warning signs are there – if you are willing to look at them.

The first chart that I want to share with you today comes from Doug Short.  It is a chart that shows that the ratio of corporate equities (stocks) to GDP is the second highest that it has been since 1950.  The only other time it has been higher was just before the dotcom bubble burst…

The Buffett Indicator from Doug Short

Does that look like a bubble to you?

It sure looks like a bubble to me.

In order for the corporate equities to GDP ratio to get back to the mean (average) level, stock prices would have to fall nearly 50 percent.

If that happens, people will be calling it a crash, but in truth it would just be a return to normalcy.

This next chart comes from Phoenix Capital Research.  The CAPE ratio (cyclically adjusted price-to-earnings ratio) is considered to be an extremely accurate measure of the true value of stocks…

As I’ve noted before, the single best predictor of stock market performance is the cyclically adjusted price-to-earnings ratio or CAPE ratio.

Corporate earnings are heavily influenced by the business cycle. Typically the US experiences a boom and bust once every ten years or so. As such, companies will naturally have higher P/E’s at some points and lower P/E’s at other. This is based solely on the business cycle and nothing else.

CAPE adjusts for this by measuring the price of stocks against the average of ten years’ worth of earnings, adjusted for inflation. By doing this, it presents you with a clearer, more objective picture of a company’s ability to produce cash in any economic environment.

Based on a study completed Vanguard, CAPE was the single best metric for measuring future stock returns.

When the CAPE ratio is too high, that means that stocks are overpriced and are not a good value.  And right now the CAPE ratio is the 3rd highest that it has been since 1890.  That only times it has been higher than this were in 1929 (we all remember what happened then) and just before the dotcom bubble burst…

CAPE - Phoenix Capital Research

The funny thing is that stocks have continued to rise even as corporate revenues have begun to fall.

According to Wolf Richter, in the first quarter of 2015 corporate revenues are projected to decline at the fastest pace that we have seen since the depths of the last recession…

Week after week, corporations and analysts have been whittling down their estimates. By now, revenues of the S&P 500 companies are expected to decline 2.8% in Q1 from a year ago – the worst year-over-year decline since Q3 of crisis year 2009.

This next chart I want to share with you shows how the Nasdaq has performed over the past decade.  Looking at this chart alone, you would think that the U.S. economy must have been absolutely roaring since the end of the last recession.  But what is really going on is rampant speculation.  Some of the tech companies that make up the Nasdaq are not making any profits at all and yet they are supposedly worth billions of dollars.  If you cannot see a bubble in this chart, you need to get your vision checked…

NASDAQ Chart

And this kind of irrational euphoria is not just happening in the United States.

For example, Chinese stocks are up nearly 80 percent over the past nine months.

Meanwhile, the overall Chinese economy is growing at the slowest pace that we have seen in about 20 years.

Right now, we are in the calm before the storm.  We are right at the door of the next great financial crisis, and most of the people that work in the industry know this.

And once in a while they let the cat out of the bag.

For example, consider what Hans-Jörg Vetter, the CEO of Landesbank Baden-Württemberg in Germany, had to say during one recent press conference

“Risk is no longer priced in,” he said. And these investors aren’t paid for the risks they’re taking. This applies to all asset classes, he said. The stock and the bond markets, he said, are now both seeing “the mother of all bubbles.”

This can’t go on forever. Or for very long. But he couldn’t see the future either and pin down a date, which is what everyone wants to know so that they can all get out in time. “I cannot tell you when it will rumble,” he said, “but eventually it will rumble again.”

By “again” he meant the sort of thing that had taken the bank down last time, the Financial Crisis. It had been triggered by horrendous risk-taking, where risks hadn’t been priced into all kinds of securities. When those securities – mortgage-backed securities, for example, that were hiding the inherent risks under a triple-A rating – blew up, banks toppled.

What Vetter is telling us is what I have been warning about for a long time.

Another great stock market crash is coming.

It is just a matter of time.

  • kfilly

    These are interesting times. I wish I could see the future to see what they say about us. I bet it won’t be kind words.

    • Mike Smithy

      I suppose that they will reflect philosophically as to how the American people were self absorbed and willfully ignorant as to how they orchestrated their own demise.

      • jsmith

        I guess I understand what you guys are saying, but it’s not exactly all our fault. All the problems we have now are to be blamed on the Federal Reserve Board and its member banks. When the Fed devalues the dollar over the years (100) the manure would eventually hit the fan, and that’s just where we are now. We were just playing by their rules, and somehow some of us woke up to their malevolent machinations. I say some of us, because the majority of the nation is clueless, but they are slowly waking up to the fact that we are no longer numero uno in just about everything except defense.

        • K2

          It was the federal reserve bank that helped US become the world’s number one super power by making dollar the world’s reserve currency. Ofcourse other factors helped the US too, but the bank’s role cannot be ignored….it was one of the major reasons. Its the bank that is keeping the market propped up even now too. If it wasnt US would have slipped long back into recession once again. Do you want that?

          • Dave

            Cannot be ignored? Yeah…the dollar has lost 97% of it’s value since the Fed (a private bank owned by banker stockholders) was begun.
            God, the sheeple.

          • alan

            Empire built on debt what could wrong.

          • K2

            by that metric every currency lost its value.
            god the mor*ns.

          • Mike Smithy

            Wrong. the currency of Chile is still backed by gold? As a result, they don’t have currency debasement issues.

          • K2

            great you found out one or two exceptions, you want a cookie? Most currencies have lost their value since the last few decades.

          • Mike Smithy

            Yes a cookie would be nice, but more importantly, you are missing the point. Counties that refuse to back their currency by PM’s are subject to debasement.

          • K2

            The problem with backing your currency with PM is you cannot expand its supply as easily.

          • Mike Smithy

            The U.S. does not need a Federal Reserve and never did. Due to the outcome of WW2, the USA was in a dominant position economically. It’s subsequent desirability as a reserve currency would have happened with or without a Federal Reserve. Why does the USA need to pay interest to a monetary middleman such as the Federal Reserve? Read “The Creature from Jekyl Island” and you will have your answer.

          • K2

            How would US dollar have had become a reserve currency without the fed?

          • Mondobeyondo

            The U.S did quite well without the Federal Reserve from 1789 to 1913. It somehow managed to survive and even thrive in the late 1800’s. (Not that previous attempts at a national central bank weren’t tried…)

          • AzDi

            So what else can be done? We can sustain this forever… right?

          • K2

            In my opinion not just the US but the world economy cannot grow forever and that has nothing to do with the fed reserve.

          • T.

            The U.S. was already the world’s super power in both Military and Economic might in 1944, when the Bretton Woods agreement took place. In 1944 Bretton Woods, the U.S. Dollar was made the world reserve currency – Yes, under the leadership of the Federal Reserve Bank. This added to the U.S. super power status. Now, we were the super power in 3 ways: 1.) Economically 2.) Militarily and 3.) Monetarily. The U.S. Dollar must Now be Bought and held in reserve by Nations in order to Conduct Trade Transactions between Nations and all commodities would be priced in Dollars. That is how the Federal Reserve Bank has been used by the World Monetary Cabal to bring the whole world NOW to the Brink of Economic and Financial DISASTER.

          • K2

            US was not the only super power, soviet union was too. Also the powers that were responsible for the british pound being the reserve currency were the same people who made dollar the reserve currency after the war.

            Also explain this: How did this ”The U.S. Dollar (Good as Gold) must Now be Bought and held in reserve by
            Nations in order to Conduct Trade Transactions between Nations and all
            commodities would be priced in Dollars.”

            lead to this ”That is how the Federal Reserve
            Bank has been used by the World Monetary Cabal to bring the whole world
            NOW to the Brink of Economic and Financial (DEBT) DISASTER.”.

          • T.

            No. The U.S.S.R. was Not a super power. General Patton wanted to go to Moscow with U.S. forces, so they killed him. Without U.S. support the soviet union would have been nothing and died. Plus, we gave them everything after the war to enable to become a super power Militarily only. The United States of America reigned Supreme Economically (untouched by WW2) and Militarily and Financially. The Powers That Be (TPTB) Keep an advisory for the U.S. at all times. It is part of Their Plan. When the old U.S.S.R. fell in 1989, then TPTB raised up this Phantom Enemy with No National boundary or state call Al Quaeda and head Phantom Ben Laden. Now, TPTB have raised up ISIS and ISIL and other Phantom Enemies to Keep us constantly engaged in WAR.
            As for the King $ leading U.S. and the World into DEBT DEMISE, here’s how.
            Before Bretton Woods Agreement, Nations settled their Trade Transactions in GOLD. After BW the Nations settled in $’s. The $ was backed by GOLD so that the Nations could return their $’s to the U.S. Treasury for GOLD. That was the BW agreement. Nations started getting antsi, because the CRIMINAL FED started printing way more $’s than there was GOLD to back them. So, Nations like France Big Time and others started Exchanging larger and larger numbers of $’s for larger quantities of GOLD. This happened until 8-15-1971 when Nixon closed the GOLD window and would No longer Exchange $’s for GOLD (or Nothing for Something). So, for the last 43 1/2 years the $ (Debt Instrument) has been FIAT (At My Will) Paper and Digital Currency – That has been Printed out of thin air by the Trillions and Flooded the whole World with them, Because All Nations have been required to use them to settle all Trade Transactions. This has placed our Nation and All Nations in such huge DEBT relative to their Income – That the Nations of the World can NEVER pay it all off. Therefore , The World DEBT will be Defaulted on when the 1 1/2 Quadrillion DERIVATIVE DEBT (Denominated in $’s) IMPLODES.

          • K2

            In my first comment i too said other things also helped US becoming super power, but banks role cannot be ignored. The banks role is the people who created the fed in 1913 were most of them the same people who were responsible for the then current financial super power…britain. And after the fed was created, it helped US print more money than would have possible without it, and it helped it industrialise to the levels of europe within a short span. This industrialisation also played a role in US becoming one of the super powers. Although US helped soviet ‘technologically’ in some aspects, in terms of military might like number of soldiers and raw materials soviet was a super power too though slightly weaker than US. Just because patton wanted to invade soviet doesnt mean it wasnt a super power.

          • K2

            As for the rest of your comment,what is the point you are making?

          • T.

            Likewise, in my first post, I agreed with you that it was the Fed that made the U.S. a super power in the Monetary sense. So, please go and read it again. What You do not seem to want to acknowledge about that post is that the U.S. was ALREADY a super power in Two ways; 1.) Economically and 2.) Militarily. In those two areas, the U.S. Had No one else even close, and that especially goes for the U.S.S.R. You seem to think that if a nation has the atomic bomb that is all there is to being a super power. No. If you read again my first to posts, I state that the U.S. was a Complete super power in All Three ways. Secondly, You do Not seem to understand that the U.S. provided the Financial means and certain Military supplies to the U.S.S.R during WW2 so that they continue to the end. Thirdly, You do not seem to understand that after WW2 we gave them Financial support and the Secrets for them to make an atomic Bomb. In short, The U.S. made the U.S.S.R. a super power Militarily (ONLY) after WW2. Now, if You do Not believe that then that is Your prerogative, but I will NOT argue the issue any more,

          • K2

            Not just in the monetary sense, industrialisation was also given a significant boost after the fed was created. And this helped it become a ‘super power’ in an economic sense, before that only agriculture and medium manufacturing abilities were there, not in the scale of europe.

            Militarily it depends on how you define a military superpower a) size and natural resources for the military it was the soviets, b) technology, germany, britain were as good as US.

            It was only after US became successful in the atomic program did it truly become the one super power leaving soviet behind. And that happened after 1944.

          • Gay Veteran

            of course the dollar is now worth pennies from what it was worth when the Federal Reserve was created.

    • jakartaman

      Arrogant – Greedy come to mind

  • Nathan Mayer Rothschild

    Buy when there is blood in the streets….even when the blood is your own.

    • Guest

      Well, I don’t see how the Fed will be able to reinflate the stock market after the next crash. It has taken several trillion dollars to inflate the current bubble. Can the Fed create several trillion more dollars without causing a complete loss of confidence in the dollar and hyperinflation? I don’t think so.

      • Mike Smithy

        Yep, the Fed is out of ammunition.

      • Genada

        The amount of money credited doesn’t matter. As long as it never makes it into the general population.

        The market is a function of hyperinflation, you see this in other areas as well. Art is selling for all time highs. Certain real estate is at all time highs. High end goods are as well.

        The stock market no longer reflects the broad economy. It’s been inflated by the creation of trillions of dollars since the last collapse. So they can do it all over again.

  • T.

    We Americans are living in “The Twilight Zone” – Everything is surreal.
    1.) The Stock Market
    2.) The Bond Market
    3.) My Vote For President Actually Counts
    4.) The Dollar Is Strong
    5.) My 401K/IRA Will Take Care Of Me In Retirement
    6.) Social Security Is Not Broke & Will Be There For Me
    7.) Our Great Grandchildren Can Pay Off Our $100 Trillion Debt
    8.) A College Degree Means A High Paying Job
    9.) The Federal Reserve Cares About Americans
    10.) I’m From The Government & I’m Here To Help

    • XSANDIEGOCA

      When the Levee breaks….

      • SunnyFlaSnotress

        Zeppelin! Yes!

      • Richard O. Mann

        Let’s put on our fav tunes, drop some acid, and party like it’s 1969. HA!!!!

    • Max

      Golden Earring said it best…

      “Help I’m steppin’ into the twilight zone
      The place is a madhouse, feels like being cloned
      My beacon’s been moved under moon and star
      Where am I to go, now that I’ve gone too far..”

      • jaxon64

        jimi Hendrix/bob Dylan

        “There must be some kinda way out of here”
        Said the joker to the thief
        “There’s too much confusion
        I can’t get no relief”

        “Businessmen, they, they drink my wine
        Plowmen dig my earth
        None of them along the line
        Know what any of it is worth”, hey

        “No reason to get excited”
        The thief, he kindly spoke
        “There are many here among us
        Who feel that life is but a joke”

        “But you and I, we’ve been through that
        And this is not our fate
        So let us not talk falsely now
        The hour is getting late”, hey

        Read more: Jimi Hendrix – All Along The Watchtower Lyrics | MetroLyrics

        • Max

          Jimi also said “Here My Train a Comin'”

          • Flippah

            I just listened to I think its Crash Landing. Hear my train a comin! I bought War Heroes at a local drug store in 72 at 10 years old. Also bought Deep Purple machine Head around the same time there. Bought Sabbath Bloody Sabbath at the grocery store and Alice Cooper Killer at K Mart.

      • Mondobeyondo

        “A Hard Rain’s Gonna Fall” – Bob Dylan

        Precisely what we’re in for.

      • Richard O. Mann

        When the bullet hits the bone.

        Yeah baby…..

    • frederick muhlbauer

      yes we are T good analysis

  • Nemnor

    What we are really observing here in the USA and virtually everywhere else in the world is that the Capitalist economic has reached the stage of decadence for some time now. The system will continue to decay and the standard of living of the mass of WORKING and unemployed people will continue to go down and down (slow grind – like in Japan, Greece, etc.). This can NOT go on forever, and the Capitalist economic system will eventually reach total collapse and chaos (including environmental collapse), except of the mass of WORKING and unemployed people rise up and make a FUNDAMENTAL change away from Capitalism to a SUSTAINABLE alternative economic system with the aim of providing true abundance for ALL. Without that fundamental chance away from Capitalism, the future of the World is massive world-wide poverty and massive world-wide destruction (through wars, environmental collapse and economic collapse)

    • Genada

      Capitalism is not the problem. Capitalism is the solution to our problems.

      We do not have a system of capitalism today, we have a system of cronyism and corporate socialism. Capitalism would be sustainable because it does not allow for unproductive ventures and spending to be kept up.

      Capitalism does not allow for too big to fail. If your business is unable to sustain it’s self and not able to make a profit, it fails. It doesn’t get bail outs and free money.

      Capitalism does not allow for certain business to be exempt from the laws.

      Our current problems have everything to do with running a system that has private profits and socialized loses. A system where the law is twisted to prevent competition and doesn’t apply to everyone in a fair manner. Those are not the problems of capitalism, those are the problems of a people that lack moral virtue to demand that the government act in the way it was intended.

      We do not need a alternative system, we need the system left by our forefathers to be restored.

      • Mike Smithy

        Well stated.

      • Cluez Jones

        +1

      • T.

        It goes Beyond the type of Economic System that a Nation has and even the type of Government that the Nation lives under. The true Cause of the very sad state of the Nation’s Economy and Government is the wicked Heart of those in Corporate America and the Federal Government on down to state and local Government. When Both Corporate and Government leaders give in to Greed and Avarice on a grand National level – They become Corrupted. Corrupted fruit is called; Rotten Fruit. This is where we are in this Nation today. We have been “Captured” by evil and wicked men, Both in Corporations and Government. Now – We are reaping the Rotten Fruit thereof.

      • Nemnor

        I believe you are mistakenly seeing a system of Free Enterprise as Capitalism. A Free Enterprise system is basically an “Association of free Producers/Workers”. However, even a Free
        Enterprise system will also NOT last and will eventually degenerate into Capitalism, EXCEPT IF society is organized in such a way to prevent (BAN) the exploitation of many by man and country by country.

        What you SEEM not to understand is that the basic essence of Capitalism is to “capitalize” – not just in “business opportunities” but also to take advantage (capitalize) on the labor/efforts of others – i.e. by exploiting the labor/efforts of others, and often to the point where the Capitalist gets exceedingly/insanely rich even while the exploited Workers see their disposable income get less and less – as we see happening in the USA and all over the World with the minimum wage being too little (right?).

        Capitalism also allows for pushing many “mom and pop” enterprises out of business, as the aim of virtually every Capitalist business (which
        might also start as a “mom & pop” venture) is to grow and grow, eventually becoming a huge monopoly – and destroying many “small enterprises” in the process.

        Hence, what you seem not to understand is that – “… a system of cronyism and corporate socialism..” (as you put it) is really a symptom (characteristic) of decayed and decaying Capitalism.

        Capitalism INEVITABLY degenerate into State Capitalism (which you labeled as “corporate socialism”, and others might label as simply “socialism” or “communism” – like in Cuba,
        North Korea, China, etc). State Capitalism (like in China, etc) is used to “manage” Capitalism as it reached it’s decadent stage. Without State Capitalism (i.e. central government involvement) the system would have already sunk into total world-wide collapse/chaos.

        The only permanent solution to the major issues facing the world is a fundamental change away from Capitalism (and “cronyism and corporate
        socialism” are characteristics of Capitalism in decadence) to a sustainable alternative system that would allow true abundance for ALL (not just for some).

    • Fireplace 1

      The mortgage crisis would not have happened if there were no g0vernment agencies stupid enough to buy the loans that people could not afford to repay.

      • Gay Veteran

        the banksters made the loans (to people they knew could not pay the loans back) and made $billions in profits

    • airedale

      After total collapse and chaos, the survivors will resort to a barter system. Barter is a lot closer to true capitalism than it is to any other form of government. Unfortunately, if collapse does happen, some sort of feudalism will likely follow.

  • Thomas D Guastavino

    Is anyone else suspicious that the FED is desperate to raise interest rates because they need to have at least some ability to lower them again when the next crash occurs? As of now they have no where to go, unless of course ramping up the printing presses.

    • alan

      They will cut rates and likely go negative like the EU. Rates will go up when bad inflation sets in, but it will be too late.

      • Thomas D Guastavino

        Thats my question. Are they desperate to raise rates now to create some wiggle room when the next crash occurs? In fact, does there behavior indicate that they are convinced another crash is about to occur?

        • Genada

          They want to sell the show, hope that by talking things up that they do go up.

          Rates can not go up, ever. We are so far in debt now that any rate hike will blow the budget up.

          The entire world has the same problem, too much debt and no ability to pay. Monetary policy around the world has become the equivalent of a massive party of dope fiends with a endless supply of coke waiting to see who drops first from taking too much.

          They want you to think they have control, they want people to believe that they can raise rates. They can not and they wonn’t.

          • Thomas D Guastavino

            Agreed that rates cant go up, hence the desperation. What does the fed do, besides massive QE to face the next crisis? Scary stuff

          • socalbeachdude

            False. Apparently you have zero comprehension as to what the Federal Reserve versions of QE were and what they were not.

            QE HAS ABSOLUTELY NOTHING TO DO WITH THE STOCK MARKETS and it effectively ended LAST DECEMBER.

            You obviously have no comprehension as to what the Federal Reserve versions of QE were and what they were not at all.

            FEDERAL RESERVE VERSION OF QE EXPLAINED:

            1) Federal Reserve buys securities from banks

            2) Federal Reserve deposits cash proceeds in excess reserves accounts of those banks at the Federal Reserve

            3) Securities stay parked on assets side of Federal Reserve GL

            4) Proceeds funds stay parked on liabilities side of Federal Reserve GL in the excess reserves accounts of the banks at the Federal Reserve

            The process is an ENTIRELY CLOSED LOOP just as if it were done inside a VACUUM.

          • Gay Veteran

            socalSHILL lies for the banksters!

          • jaxon64

            Agreed–and every time there is an announcement of ” no rate hikes this quarter”, the markets bounce up 300 points from the rush of their dose of FED crack…

          • socalbeachdude

            Which, of course, has NOTHING WHATSOEVER TO DO WITH THE FEDERAL RESERVE but rather just stupidity and FALSE PERCEPTIONS and the continuing corporate stock buybacks which have been by far the primary factory running up stock prices since March 2009 in the US and globally.

          • Gay Veteran

            beware, socalSHILL lies for the banksters

          • socalbeachdude

            Those are totally false assertions.

            How many times do folks have to be told that THE FEDERAL RESERVE DOES NOT CONTROL ANY INTEREST RATES THAT MATTER AT ALL IN THE US ECONOMY? IRREFUTABLE FACT.

            As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

          • Gay Veteran

            socalSHILL lies for the banksters

    • XSANDIEGOCA

      Excellent Point.

    • SunnyFlaSnotress

      Mm.. no, not just so that they have room to lower them in the future.. It’s more along the lines of keeping things stable

    • rgaura

      They want to raise rates as a way of pulling in capital from all the low rate loans abroad. Its nothing to do with the plebes here at home.

      • socalbeachdude

        False.

    • socalbeachdude

      Huh? The Federal Reserve DOES NOT SET ANY INTEREST RATES THAT MATTER AT ALL IN THE US ECONOMY, but merely FOLLOWS AND MATCHES THE YIELD (INTEREST) RATE ON THE 3 MONTH US TREASURY to set the Federal Funds Rate, and that has ALWAYS been the case with the Federal Funds Rate with no deviations at all over the past 100 or so years.

      The Federal Reserve does not “control money, its supply, interest rates, and bond rates” but MERELY HAS INFLUENCE over the supply of money. It really has little influence at all over interest rates in general in the US economy and yields on US Treasuries.

      The 3 rates that are set by the Federal Reserve are OF NO SIGNIFICANCE WHATSOEVER TO ACTUAL INTEREST RATES SET BY THE TREASURY MARKETS IN THE US ECONOMY, and those 3 rates MERELY FOLLOW THE YIELDS SET IN THE US TREASURY MARKETS.

      The US Treasury markets are the LARGEST ASSET MARKET IN THE WORLD and involves tens of trillions of dollars of transactions annually including more than $8.5 trillion of new US Treasuries issued each year by the US Treasury.

      The US Treasury sells US Treasuries at auctions and the highest bidders win. Since prices of bonds are inverse to yields, the higher the winning bids, the low the yields (interest rates).

      The US Treasury markets totally dwarf any transactions or balances on which the 3 interest rates set by the Federal Reserve even apply.

      The “free market” DOES INDEED SET ALL INTEREST RATES THAT MATTER IN THE US ECONOMY and that has always been the case.

      • Gay Veteran

        begone bankster shill

  • alan

    Don’t forget they have a printer and lots of ink and paper. The media will report whatever they are told. Anything we look at is way out of whack, unemployment, housing, welfare, gdp etc. So why worry about a stock market crash? They will simply stop trading because of something technical. Do some market pumping over night and restart in the am, it will turn green by noon.

    • socalbeachdude

      The US government has no authority to print any money at all.

  • Round Objects

    I’ve said it before, when the Weimar Republic experienced hyper-inflation, the newly elected government blamed religion to distract the angry masses and gave them hope. It worked. This is not an USA problem but it will be a worldwide economic calamity, all nations will be affected. The angry masses will blame the governments. The governments, to preserve there own positions, have to distract the masses and give them hope. Blame organised religion and let the masses vent their anger on them. The hope? A world without religious wars. A reset. But it will be a lie, a false hope. Think big people, not just the USA, if I’m wrong then tell me how it will play out because nobody ever has.

    • jakartaman

      Yes world economic collapse

      • socalbeachdude

        Which is a very good thing as it will clear out all of the speculative excesses and dead wood and result in true and real deleveraging and write off of much bad debt and the assets which are the flip side of debt and clear the way for much sounder economies.

        • jakartaman

          Yes after the cinders cool down and most of the dead are buried.
          I do not know what the world will emerge as.Type governments/economies/religions etc.
          I am fairly confident that it will result in catastrophic and very painful events

          • socalbeachdude

            Frugality is very good for folks and builds character and installs values and common sense.

  • mister_roboto

    And as I’m sure you have pointed out in other posts, most of the movement in the post-2008 stock market is governed by the computerized trading algorithms of the TBTF high-finance institutions. If you’re a old-fashioned individual investor, owning stocks right now is about as smart as buying the Brooklyn Bridge from some shady fellow who accosted you as you were walking down the street.

    • SunnyFlaSnotress

      Not all companies are run stupidly, but if people are in mixed funds that can’t diversify (due to sector regulation limitations) or aren’t diversified enough (due to poor management), they could get bushwhacked in a downturn.

    • socalbeachdude

      False. Most all of the movement in the post-2008 stock markets in the US and globally is driven by CORPORATE STOCK BUYBACKS AND MANIC SPECULATORS.

  • Nemnor

    What we are really observing here in the USA and virtually everywhere else in the world is that the Capitalist economic system has reached the stage of decadence for some time now. The system will continue to decay and the standard of living of the mass of WORKING and unemployed people will continue to go down and down (slow grind, especially in Japan, Greece, etc. but also in USA and the rest of the world). This can NOT go on forever, and the Capitalist economic system will eventually reach total collapse and chaos (including environmental collapse), except if the mass of WORKING and unemployed people rise up and make a FUNDAMENTAL change away from Capitalism to a SUSTAINABLE alternative economic system with the aim of providing true abundance for ALL. Without that fundamental chance away from Capitalism, the future of the World is massive world-wide poverty and massive world-wide destruction (through wars, environmental collapse and economic collapse)

  • Nemnor

    In reply to “Genada”, I state the following…

    I believe you are mistakenly seeing a system of Free Enterprise as (true) Capitalism. A Free Enterprise system is basically an “Association of free Producers/Workers”. However, even a Free Enterprise system will also NOT last and will eventually degenerate into Capitalism, EXCEPT IF society is organized in such a way to prevent (BAN) the exploitation of man by man and country by country.

    What you SEEM not to understand is that the basic essence of Capitalism is to “capitalize” – not just in “business opportunities” but also to take advantage (capitalize) on the labor/efforts of others – i.e. by exploiting the labor/efforts of others, and often to the point where the Capitalist gets exceedingly/insanely rich even while the exploited Workers see their disposable income get less and less – as we see happening in the USA and all over the World with the minimum wage being too little (right?).

    Capitalism also allows for pushing many “mom and pop” enterprises out of business, as the aim of virtually every Capitalist business (which might also start as a “mom & pop” venture) is to grow and grow, eventually becoming a huge monopoly – and destroying many “small enterprises” in the process.

    Hence, what you seem not to understand is that – “… a system of cronyism and corporate socialism..” (as you put it) is really a symptom (characteristic) of decayed and decaying Capitalism.

    Capitalism INEVITABLY degenerate into State Capitalism (which you labeled as “corporate socialism”, and others might label as simply “socialism” or “communism” – like in Cuba, North Korea, China, etc). State Capitalism (like in China, etc) is used to “manage” Capitalism as it reached it’s decadent stage. Without State Capitalism (i.e. central government involvement) the system would have already sunk into total world-wide collapse/chaos.

    The only permanent solution to the major issues facing the world is a fundamental change away from Capitalism (and “cronyism and corporate socialism” are characteristics of Capitalism in decadence) to a sustainable alternative system that would allow true abundance for ALL (not just for some).

    • True indeed. A reorganization of the economy along the lines of workers’ self-management for large enterprises would be a good idea, as well as an elimination of the debt-as-money system that makes possible the magnetic attraction of wealth to more wealth.

  • SunnyFlaSnotress

    Most people who are in the stock market can endure a good “haircut”. And by this time in history, most mature people know better than to go out on a limb with margin debt. It’s those big over-leveraged companies that need to be a concern. The too-big-to-fail financial corporations know how to make everyone bite their nails, and hopefully the government has made them gird themselves well enough, but there are other types of companies to consider. Transportation, energy companies etc, need intelligent leadership. Systematic implosions are oftimes for the best. We’re not a Communist country,but we shouldn’t force more people to be homeless either. Personally, I’m all for letting the air out of an over-inflated market. And as I say when people dare to mention the Depression Dustbowl.. These aren’t the same times. There is more infrastructure in place.. there is more structure on both a physical and sheer capability level (technology, communications, etc).
    Stock market plunge? Bring it on. I’m a lot more concerned about the over-inflated government.

  • Mondobeyondo

    You cannot continue to defy gravity forever, which is what the stock market is doing. By any rational sense, the Dow Jones should be much lower than 17,770 or whatever it closed at yesterday. It just doesn’t seem logical…

  • Richard O. Mann

    Russia is building up their nuclear arsenal and getting ready to start WW3 against the US. Maybe they will nuke us before the market crashes and burns. Could very well happen.

    • ForTehLulz

      Wish that was true.

    • socalbeachdude

      Those are totally bogus assertions, dude. Russia does not have any interest whatsoever in any “war” and is the greatest force behind PEACE in the region these days.

    • jox

      Don’t spread nonsense fear please!

    • Gay Veteran

      it is the U.S. government which is the biggest threat to world peace

  • RageHard84

    So, basically, we should wait before we start buying stocks.

  • GSOB

    ….but to those whom God has called, both Jews and Greeks, Christ the power of God and the wisdom of God.

  • A Wyatt Krieger

    “Meanwhile, the overall Chinese economy is growing at the slowest pace that we have seen in about 20 years.”

    Guess who is paying for that borrowed prosperity.

    • socalbeachdude

      Who?

  • socalbeachdude

    The Federal Reserve versions of QE did no such thing at all as you erroneously assert and totally ended on October 31, 2014.

    • Gay Veteran

      socalSHILL lies for the banksters.

  • socalbeachdude

    Nope, but there will be tens of trillions of dollars of losses in the US and globally as the asset bubbles deflate massively and rapidly. It’s only money, however. Don’t worry. Be happy!

  • socalbeachdude

    The Federal Reserve cannot do anything about employment in the US and the employment issues are STRUCTURAL where American employees have priced themselves out of viability coupled with government regulations and taxes making it very undesirable in most cases for companies to hire anyone in the US.

    As to US unemployment, it is around 32% currently when properly and fully accounted for, but s0 what? Hopefully it will move very substantially higher as we move towards fulfilling the dreams of a truly Utopian LEISURE CLASS SOCIETY where nobody “works.”

    THE LATEST COMPLETE US UNEMPLOYMENT REPORT

    101,192,000 Americans eligible and of working age now not working (31.82%)

    The US has a population of about 318,000,000 people.

    Let’s do some math:

    318,000,000 Total People in America on which all percentages based

    -69,156,000 Americans NOT ELIGIBLE for Labor Force (21.75%)

    248,844,000 Total population ELIGIBLE for working in the US (78.25%)

    -93,175,000 Americans ELIGIBLE for Labor Force “Not Participating” (29.21%)

    – 8,017,000 Americans ELIGIBLE and “actively seeking employment” (02.52%)

    147,652,000 Americans CURRENTLY WORKING (46.95% of all Americans)

    170,348,000 Americans CURRENTLY NOT WORKING (53.57% of all Americans)

    The GRAND GLOBAL DEPRESSION started in August 2007 and has been intensifying ever since and is now rapidly intensifying. There is nothing whatsoever the Federal Reserve can do about that, but the good news is that it will likely come to and end after sufficient deflation occurs between now and around 2040.

    • Gay Veteran

      socalSHILL lies for the banksters!!

  • Thinking clearly requires deliberate effort. See Personal Leadership Training Guide ISBN 978-1511494489

Rapture Verdict Ad1
Ready Made Resources 2015
New Self Defense Tool
Finca Bayano

Silver.com

Lifestraw
Economic Collapse Investing
Lifesilver
Panama Relocation Tours
The 1 Must Own Gold Stock
180x350
Marzulli Gift Offer
Credible Warning
Family Survival Kits
How To Make The Ultimate Survival Food
Natural Solutions
ProphecyHour
Facebook Twitter More...