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Most People Cannot Even Imagine That An Economic Collapse Is Coming

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Thinking - Public DomainThe idea that the United States is on the brink of a horrifying economic crash is absolutely inconceivable to most Americans.  After all, the economy has been relatively stable for quite a few years and the stock market continues to surge to new heights.  On Friday, the Dow and the S&P 500 both closed at brand new all-time record highs.  For the year, the S&P 500 is now up 9 percent and the Nasdaq is now up close to 11 percent.  And American consumers are getting ready to spend more than 600 billion dollars this Christmas season.  That is an amount of money that is larger than the entire economy of Sweden.  So how in the world can anyone be talking about economic collapse?  Yes, many will concede, we had a few bumps in the road back in 2008 but things have pretty much gotten back to normal since then.  Why be concerned about economic collapse when there is so much stability all around us?

Unfortunately, this brief period of stability that we have been enjoying is just an illusion.

The fundamental problems that caused the financial crisis of 2008 have not been fixed.  In fact, most of our long-term economic problems have gotten even worse.

But most Americans have such short attention spans these days.  In a world where we are accustomed to getting everything instantly, news cycles only last for 48 hours and 2008 might as well be an eternity ago.

In the United States today, our entire economic system is based on debt.

Without debt, very little economic activity happens.  We need mortgages to buy our homes, we need auto loans to buy our vehicles and we need our credit cards to do our shopping during the holiday season.

So where does all of that debt come from?

It comes from the banks.

In particular, the “too big to fail banks” are the heart of this debt-based system.

Do you have a mortgage, an auto loan or a credit card from one of these “too big to fail” institutions?  A very large percentage of the people that will read this article do.

And a lot of people might not like to hear this, but without those banks we essentially do not have an economy.

When Lehman Brothers collapsed in 2008, it almost resulted in the meltdown of our entire system.  The stock market collapsed and we experienced an absolutely wicked credit crunch.

Unfortunately, that was just a small preview of what is coming.

Even though a few prominent “experts” such as New York Times columnist Paul Krugman have declared that the “too big to fail” problem is “over”, the truth is that it is now a bigger crisis than ever before.

Compared to five years ago, the four largest banks in the country are now almost 40 percent larger.  The following numbers come from a recent article in the Los Angeles Times

Just before the financial crisis hit, Wells Fargo & Co. had $609 billion in assets. Now it has $1.4 trillion. Bank of America Corp. had $1.7 trillion in assets. That’s up to $2.1 trillion.

And the assets of JPMorgan Chase & Co., the nation’s biggest bank, have ballooned to $2.4 trillion from $1.8 trillion.

At the same time that those banks have been getting bigger, 1,400 smaller banks have completely disappeared from the banking industry.

That means that we are now more dependent on these gigantic banks than ever.

At this point, the five largest banks account for 42 percent of all loans in the United States, and the six largest banks account for 67 percent of all assets in our financial system.

If someone came along and zapped those banks out of existence, our economy would totally collapse overnight.

So the health of this handful of immensely powerful banking institutions is absolutely critical to our economy.

Unfortunately, these banks have become deeply addicted to gambling.

Have you ever known people that allowed their lives to be destroyed by addictions that they could never shake?

Well, that is what is happening to these banks.  They have transformed Wall Street into the largest casino in the history of the world.  Most of the time, their bets pay off and they make lots of money.

But as we saw back in 2008, when they miscalculate things can fall apart very rapidly.

The bets that I am most concerned about are known as “derivatives“.  In essence, they are bets about what will or will not happen in the future.  The big banks use very sophisticated algorithms that are supposed to help them be on the winning side of these bets the vast majority of the time, but these algorithms are not perfect.  The reason these algorithms are not perfect is because they are based on assumptions, and those assumptions come from people.  They might be really smart people, but they are still just people.

If things stay fairly stable like they have the past few years, the algorithms tend to work very well.

But if there is a “black swan event” such as a major stock market crash, a collapse of European or Asian banks, a historic shift in interest rates, an Ebola pandemic, a horrific natural disaster or a massive EMP blast is unleashed by the sun, everything can be suddenly thrown out of balance.

Acrobat Nik Wallenda has been making headlines all over the world for crossing vast distances on a high-wire without a safety net.  Well, that is essentially what our “too big to fail” banks are doing every single day.  With each passing year, these banks have become even more reckless, and so far there have not been any serious consequences.

But without a doubt, someday there will be.

What would you say about a bookie that took $200,000 in bets but that only had $10,000 to cover those bets?

You would certainly call that bookie a fool.

But that is what our big banks are doing.

Right now, JPMorgan Chase has more than 67 trillion dollars in exposure to derivatives but it only has 2.5 trillion dollars in assets.

Right now, Citibank has nearly 60 trillion dollars in exposure to derivatives but it only has 1.9 trillion dollars in assets.

Right now, Goldman Sachs has more than 54 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.

Right now, Bank of America has more than 54 trillion dollars in exposure to derivatives but it only has 2.2 trillion dollars in assets.

Right now, Morgan Stanley has more than 44 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.

Most people have absolutely no idea how incredibly vulnerable our financial system really is.

The truth is that these “too big to fail” banks could collapse at any time.

And when they fail, our economy will fail too.

So let us hope and pray that this brief period of false stability lasts for as long as possible.

Because when it ends, all hell is going to break loose.

  • frankensteingovernment

    Gosh Mike, I’ve been hearing this doom and gloom for 6 years, yet nothing ever happens. Eric Sprott called for 2100 gold by Dec.

    Maybe Bernanke and his college thesis were correct. The best minds of 1929 couldn’t figure out what hit ’em or the cure for that. Perhaps Ben did.

    • Humpty Dumpty

      Yeah, been hearing the sky will fall any day now since we began to recover in late ’09. Sold my stocks and mutual funds. They’re up 150% since I sold. Bought silver. Down 50% so far. Apparently the FED thinks the way to rescue this economy is to ensure banks, public corporations, hedge funds and those who invest in them be perpetually protected. It might be about time to reconsider the economic collapse for investors. It’s only collapsing around us paranoid schmucks.

      • Ian B.

        It all looks great until you look behind the curtain. I would hold onto that physical silver you purchased. The paper is way below production cost. It won’t be long now. Patience. When the market falls off the wall this time, they won’t be able to put the pieces back together again.

      • Mike Smithy

        I share your frustration Humpty Dumpty. I sold my stawks in february, 2010 and purchased silver with the proceeds at $32.00 oz. Although my timing was way off the mark, I am convinced that stawks will crash and PM’s will reach terminal velocity soon enough.

        • Guest

          I hope so.

        • Humpty Dumpty

          One way or the other it’s still gambling isn’t it? And the odds appear to be stacked in favor of the house. I miss those bygone halcyon days of 5 or 6 percent interest on FDIC insured savings. . . what’s left of ’em.

      • roberto

        When stocks were crashed, it was the time to buy. Now that we are in a bubble again, those who can time it right will sell out of stocks and switch back to investments that will be seen as shelters during the crash. I upped my 401K withholding during the last crash. Knowing my luck, I’ll miss the bubble bursting, though.

      • panamero

        there is no recovery and inflation is rampant. the economy is a reanimated zombie. it moves but has no life in it. only job loss…

      • sad sack o

        for some of us silver is down 75%

    • jsmith

      So you have been waiting for 6 years for another crash? But it did crash in 2008, didn’t it? So you think that money printing by Bernank and getting into more debt to get out of debt works? Never worked for me!

    • alan

      The collapse started 6 years ago, you just didn’t notice it. Enjoy the ride down. Gold will go up at the very end and then down as you will not have any currency to value it against.

  • Bill

    Inconceivable because the elite control the media that tells the sheeple that all is ok and stocks just keep ballooning.

  • Bill

    Michael, I think you have made some of your most astute observations ever in this article.

  • K

    The collapse will come soon enough. And the results will be worse, than most can imagine. Do not let the trolls distract you. If this place is such nonsense, why keep coming here? Unless they are paid to.

    • Humpty Dumpty

      Who are the trolls?

      • Mike Smithy

        Media Matters routinely sends over their paid trolls to push their leftist commie agenda.

        • Twisk

          Please define “leftist commie”.
          Thanks.

          • Diz

            Barack Obama

          • Joe D

            I think the precise def of barry is gay communist muslim….

          • Mike Smithy

            Let’s start with George Schwartz (Soros), AKA Dr. Evil when it comes to his unrelenting support of left wing foundations like Media Matters. Soros is a self loathing Jew who admitted that he was engaged in working with the Nazi’s (National Socialists) as a teenager. He himself has admitted that Hitler’s henchman, Adolph Eichman called him his adopted grandson. There is no denying that the end result of Communism/Marxism/Socialism is always a two class society; the wealthy elites and the working poor. Dr. Evil has invested billions in leftist media outlets that openly push his agenda.

          • Priszilla

            Well, with this kind of education of the “educated” I’d hate to see the uneducated. LOL

          • Mike Smithy

            What exactly are you having a hard time coming to terms with?

          • Priszilla

            Two classes. Ever since the stone age there have been two major economic classes – those who possess the means of production and those who don’t.

          • brian

            Wrong, but nice shot at propaganda.

          • Priszilla

            Yeah right. And the sun revolves around the earth.

          • Nobleharbor

            Actually the Sun and the Earth BOTH revolve around the center of gravity… which from time to time, depending on alignment of the planets is NOT within the sun. 😉

          • Priszilla

            You will always be disappointed that your “real” capitalism does not exist anymore, if you label the current one as too socialist.
            If you adopt “my” view nothing fundamental has changed in the last 400 years and things are easy to explain again.
            Just like with the sun and earth.

          • ractivist

            And a hundred million killed with the older version of communist, fascism and socialism. What do you think is on the horizon?

          • ractivist

            Bill Ayers made it three times the first three months. Now the whitehouse will not tell who goes there and the records are sealed for a decade or so….liars, opaque.

          • daniel1154

            Defining though example consider Cuba, China, North Korea, and the Democrat party of the US.

          • Twisk

            Thanks, that’s what I thought. None of you have the foggiest idea.

            Special award of inordinate ignorance to the one who called Soros a Socialist.
            Or Barak Obama. It’s hilarious!

          • daniel1154

            In 2010, the Communist party USA sued the Democrat party for theft of their platform. CPUSA endorsed Obama twice, and Kerry in 2004.
            As for the lawsuit.

            “Even the Communist Party USA (CPUSA) has now objected to the Democrat Party,
            suing the Democrats and its leadership for “stealing” their party platform and
            relabeling it as “progressive”.
            According to political hotwire and many
            other sources, CPUSA claims that the entire so-called “new” Democratic agenda
            is, in fact, the product of a decades-long, painstaking campaign by CPUSA
            theorists, agitators, and underground subversive cells – which makes it the
            intellectual property of the Communist Party USA, protected by American
            copyright laws. “They stole our entire platform, rebranded it ‘progressive’, and
            claimed it as their own,” declared a CPUSA spokesperson at a press conference in
            San Francisco. “And we communists say, not so fast!”

          • brian

            Google it libtard.

          • Dave Johnson

            BHO and anyone that voted for him

      • Malcolm Reynolds

        You’ll want to look at the people that blame ONLY rich people, or republicans, or DA JOOOOS, or capitalism (and think this system is capitalism), talk about ‘living wages’, they’re generally democrat apologists and they generally have no idea what money is or how it works.
        Just some of the indicators.

        You can catch them lying about who they are – Gay Vet is one.

        Priszilla is one.

        • Gay Veteran

          that’s ripe, Malcolm calling me a liar.
          man, you have really turned into a troll

          • Malcolm Reynolds

            Well yea, that shoe fits like a glove, Cinderella.
            Specifically, another poster on here confirmed that you claimed to be a profession other than what you claimed to be with me, which was patent attorney.
            Regardless, you’re a democrat troll. Have a good one.

          • Gay Veteran

            “…another poster on here confirmed that you claimed to be a profession (“Wait, Gay told me he’s a scientist in the Oil Industry a while ago”) other than what you claimed to be with me, which was patent attorney….”

            hearing those voices in your head again, eh

            “…Regardless, you’re a democrat troll….”

            wow, you have really turned into a bearer of false witness.
            I detest BOTH parties because they are owned by the same elites.
            but you go along your retarded way

          • Gay Veteran

            “…another poster on here confirmed that you claimed to be a profession (“Wait, Gay told me he’s a scientist in the Oil Industry a while ago”) other than what you claimed to be with me, which was patent attorney….”

            hearing those voices in your head again, eh? or just making shi t up?

            “…Regardless, you’re a democrat troll….”

            wow, you have really turned into a bearer of false witness.
            I have repeatedly told you that I detest BOTH parties because they are owned by the same elites.
            now go merrily along your retarded way and leave political discourse to your betters

          • Malcolm Reynolds

            Please dude. As I’ve repeatedly reminded you – you argue FROM the hard-left, FOR the hard-left, regardless of your blather about the parties.

            You somehow think the totalitarianism of the leftist establishment will be remedied by going further left.

            So me and them voices in my head will just put your little flailing on the heap with the rest of your BS lies.

            leave political discourse to your betters

            Which will never include you, BTW.

          • Gay Veteran

            oh yeah, I’m hard left, so hard left I read libertarian Karl Denninger’s website every day and find myself usually agreeing with him. I also read Paul Craig Robert’s website, he was served in Reagan’s cabinet.
            so as usual you bear false witness

          • Malcolm Reynolds

            As usual, you deny it by distracting that you read anti-establishment alternative sites. Now deny that you’re a Occupy Wall Street leftist or else it’s clear that you’re lying.

            Should I wait?

          • Gay Veteran

            oh yeah, everybody in Occupy Wall Street was leftist. no libertarians or conservatives there who opposed the Big Banks.

            YOU can label yourself, I deal with individual issues. For example, “gun control”, I’m totally opposed to it because we have an inherent right to self defense. Banning abortions, I’m opposed to it because we have an inherent right to control our own body.

          • Malcolm Reynolds

            So that’s a no, you wont deny it.
            I think that’s all that needs to be said. Thanks for playing. Have a good day out there.

          • Gay Veteran

            yeah, I’m soooooooo far left that I oppose gun control.

            but that’s ok Einstein, you enjoy your little labels, so much easier than actually thinking for yourself

          • Malcolm Reynolds

            now do the homosexual agenda. Oops, checkmate. I’m out, argue with yourself.

          • Gay Veteran

            oh yeah, legal equality, oh so scary. BOO! now go change your diapers

          • Gay Veteran

            ok junior, let’s compare websites we routinely read.
            I read the following:
            Market Ticker (Karl Denninger),
            Paul Craig Roberts,
            The Burning Platform,
            SHTF,
            The Economic Collapse,
            empire burlesque,
            powerofnarrative
            Gerald Celente.
            How many of those are hard left? NONE.
            How many of those are left?
            MAYBE empire burlesque and powerofnarrative.

          • Malcolm Reynolds

            Sorry skippy, red herring that refutes none of what I said.

            Here’s your reminder.
            As I’ve repeatedly reminded you – you argue FROM the hard-left, FOR the hard-left, regardless of your blather about the parties.

            Thanks for playing.

          • Gay Veteran

            sorry, I assumed you actually read. should have known better considering your asinine comments

          • Malcolm Reynolds

            Who do you post as at SHTFPlan? I’d love to go check out your record of dopery over there. As an occutard, I suspect you’re that rabid anti-Semite, and utter nutbag, John Q Public

          • Gay Veteran

            anti-Semite? nah, that’s usually you right-wing types

          • Malcolm Reynolds

            LMFAO! Ok, you got me back in on that, just because I cant let you think you have a valid point on this. That’s not even remotely credible dude AND YOU KNOW IT.

            See Israel and Obama’s treatment of them. VERY anti-Israel, which last I checked, is a Jewish state.

            See democrats and UTTER support of Palestinian terrorism against who?…. Jews

            See Occutard (of which you’re a card carrying member) anti-Semitism, caught in mucho videos with their rabid anti-Semitism.

            See all left wing colleges and their blather of same.
            No Cinderella. Just no.

          • Gay Veteran

            “…See Israel and Obama’s treatment of them. VERY anti-Israel, which last I checked, is a Jewish state….”

            How is Obama anti-Israel??? Has he cut off the $BILLIONS of our tax dollars going to Israel? NO foreign aid! That is money that needs to be spent in America for Americans.

          • Gay Veteran

            “…Israel, which last I checked, is a Jewish state….”

            The Israeli government pledged to build more than 1,000 new settler homes in Arab east Jerusalem.
            Libertarian Karl Denninger’s reaction?

            “…What would be our reaction if a bunch of white families decided to take over 35 homes owned by black people in a US City? We’d call that what it is — grand theft and probably worse, and seek to put those people in prison, right?

            Well?

            Is it really any more difficult than this to understand? I think not.

            You cannot tell me that you want peace while at the same time you’re doing this — unless your definition of “peace” is in fact subjugation.

            As I have repeatedly pointed out Israel has an intractable demographic problem in terms of who gives birth to how many kids, and there is no solution to this problem that maintains Israel as a Jewish state over time.

            The fundamental question is thus really quite simple: Does a state have the right to declare that a particular religious or ethnic group is “superior” to others and should be protected so the character of their government is likewise protected?

            If so, can we do the same here in the United States with, for example, Hispanics — or Catholics?

            Careful with your premise here folks, because if you support what Israel is doing in this regard then you are in fact declaring that one race or religion is superior to another, which is in fact the antithesis of our Constitution — and any claim a government may have to being a secular, constitutional republic.

            PS: If it’s perfectly ok for Israel to be a Jewish State, defending that however it decides is warranted up to and including killing people, then please compare and contrast with Saudi Arabia — or ISIS, for that matter, explaining why what one does is ok and the other two are not.”

          • Gay Veteran

            “…See democrats and UTTER support of Palestinian terrorism against who?…. Jews….”

            EVIDENCE please.

            “…See Occutard (of which you’re a card carrying member) anti-Semitism, caught in mucho videos with their rabid anti-Semitism….”

            Because all of Occupy support what a few say. That’s brilliant, junior

          • Gay Veteran

            very odd you hate Occupy, when they have much in common with the Tea Party:

            Thoughts On Election Day: Relax, Both Parties Are Going Extinct
            Mike Krieger of Liberty Blitzkrieg blog,

            “…The other thing that helped me become more filled with optimism about the future was the things I was seeing at the grass roots level. The grassroots response from both anti-Democratic establishment “progressive types” and anti-Republican establishment “libertarians” had striking similarities. On many of the most significant issues of our day, these two “activist” groups had a surprising degree of overlap. I first noticed it with the emergence of both the Occupy Wall Street Movement and the Tea Party. This venn diagram sums it up well:

            [2 circles which overlap in the middle.

            Circle on the left: What Occupy Wall Street protesters are upset about: Corporations have way too much power.

            Crlcle on the right: What Tea Party protesters are upset about: Government has way too much power.

            Where the 2 circles overlap: Large corporations lobby for the government to have more power, and in return the government enacts laws and regulations favorable to large corporations.]

          • Malcolm Reynolds

            I read the article already. Dude was only right insofar as both of the groups basically identified one of the biggest actual issues (if not the largest) this country faces.

            After that, the Occutards and their solutions melted into a gigantic pile of militant leftist extremism (including terrorism), which is why they were torn apart by LEO agencies.

            The Tea Party however, were actually sane and that’s why it was essentially maligned and destroyed by the establishment of both parties (and is railed against by … YOU). Get it?

          • Gay Veteran

            “…the Occutards and their solutions melted into a gigantic pile of militant leftist extremism (including terrorism), which is why they were torn apart by LEO agencies….”

            I shouldn’t be surprised at how you lick the boots of the police who serve TPTB!

            Revealed: how the FBI coordinated the crackdown on Occupy

            “It was more sophisticated than we had imagined: new documents show that the violent crackdown on Occupy last fall – so mystifying at the time – was not just coordinated at the level of the FBI, the Department of Homeland Security, and local police. The crackdown, which involved, as you may recall, violent arrests, group disruption, canister missiles to the skulls of protesters, people held in handcuffs so tight they were injured, people held in bondage till they were forced to wet or soil themselves –was coordinated with the big banks themselves.

            The Partnership for Civil Justice Fund, in a groundbreaking scoop that should once more shame major US media outlets (why are nonprofits now some of the only entities in America left breaking major civil liberties news?), filed this request. The document – reproduced here in an easily searchable format – shows a terrifying network of coordinated DHS, FBI, police, regional fusion center, and private-sector activity so completely merged into one another that the monstrous whole is, in fact, one entity: in some cases, bearing a single name, the Domestic Security Alliance Council. And it reveals this merged entity to have one centrally planned, locally executed mission. The documents, in short, show the cops and DHS working for and with banks to target, arrest, and politically disable peaceful American citizens….”

          • Malcolm Reynolds

            Imagine that!!! LEOs coordinate to stop terrorism.
            They were planning bombings and wanted outright property confiscation and redistribution only a Bolshevik could love, so piss-off Occutard.

            You’re so dim, it’s amazing you can lick a window without slitting your own throat.

          • Gay Veteran

            yep, keep licking that police boot and buying the corporate media propaganda like a good sheep

      • L

        Anyone who disagrees with me.

    • william mony

      there is a reason that our country is becoming militarized, and they have the FDA buying bullets-the feds know that the system is fragile and one event, another 9-11, will send our country to collapse and free falling…

  • MeMadMax

    Wall street keeps going up because it is globalized… it no longer represents the state of the US economy…

    Meanwhile, all you have to do is go a few miles from it and you hit homeless slum city… Reality is not far away from the casino and pretty soon they will have to move it some other place like sweden…

    ^.^

  • MIchael in Chicago

    Most American’s do not even understand the concept of inflation much less a market correction or collapse. I probably should have started my own blog just about what is happening with food prices on a weekly basis. Anyway. Some prices are going up on a weekly basis and there is almost always at least one company rolling out new (smaller) packaging every week. This has been going on all year and start years ago just on a much smaller scale. Most consumers still just buy a few days or a weeks worth of food at a time and I hope that works out for them.

    • jsmith

      Tell me about it! Just recently was shopping for Corn Chex cereal at the market when the box looked thinner. On closer look and when comparing it to my last purchase, sure enough, the box went from 14 ounces to 12.

      • Richard O. Mann

        Did the price remain the same, or go up? I’ve noticed that in some cases, the package got smaller while the price went up. We use to buy sugar in 5 lb bags. I now see 4 lb bags and no 5 lb bags. Or, you can buy a kilo of sugar. 2.2 pounds. Yes, food prices alone are taking a big chuck of peoples pay checks. It’s the prices of the must have basics that are doing us in.

      • Brian Jones

        Amazing the lengths they go to in order to hide inflation from us. It’s much cheaper to just raise the price then design and produce a whole new package.

    • Vizzini

      It is inconceivable!

  • Jordan Helwig

    Michael the amount of money in exposure as absolutely unconscionable compared to even your example explaining the situation. This is absolute chaos waiting to happen.

  • TheSkeptic

    As I see it, you will not even hear about most of it from the mainstream media. The corporate media will be instructed to not raise the fear and anxiety levels of the sheep. Mass communication will be detrimental for law and order. Just keep everything nice and compartmentalized. When civil chaos erupts, the local swat teams will usher people away to Fema operated detention centers for their own “safety.”

  • Rafael Marcelo

    this is what happens when you let millions of sub humans on your nation!They are nothing more than PARASITES!EXPEL THEN!

  • Rburns

    I will not pretend to understand derivatives insofar as they relate to crashing an economy. I have not found a source that explains that clearly. I find it interesting that some seem to relish the idea of a collapse perhaps in “I told you so” thinking. I have been hearing this sort of thing since the seventies and I am betting it was around before then. Even in the Great Depression not everyone was hurt. Millions were but not everyone nor did the nation collapse. While I do not trust government there will be emergency decrees enacted to limit damages. What those might be I cannot say. I suspect the currency will be protected at all costs. How that happens I cannot say. Creditors will get cents on the dollar and some, perhaps many, will fold. Some debts will be renounced and books cleared. I would like to see discussion on these issues rather than bland acceptance that all is lost. For the preppers, eventually your supplies will run out. It will get ugly but the alternative of collapse is unacceptable.

    • Priszilla

      Derivatives are bets on future stock performance. There are bets that stocks will rise and bets that they fall. And there are bets on bets.

      Most financial instruments have nothing to do with investing money into a company. Those companies will not see a cent after they sold their shares in an IPO.

  • Mike Smithy

    I find it incredulous that as QE3 officially came to an end last week and stawks have continued to rally since last Wednesday. As it turns out, I wasn’t the only one befuddled. Last friday, Zero Hedge posted an article that provided some insights. The article mentioned that the same day QE3 ended in the U.S., Japan’s central bank announced that they were implementing their own QE program due to the Yen/USD conversion. The article further suggested that this was the reason that the DOW continues to levitate. It is apparent that this is not a coincidence and that central bank collusion is going on pursuant to stealth QE programs.

    • jaxon64

      Exactly..there was a confluence of events –planned or not–that made this the perfect time to end QE3..japanese QE, 3rd quarter report of “growth 3+%” and the upcoming holidays binge buying ( americans will literally trample eachother for a $20 plastic gadget at walmarts on black friday).
      I will stick with my analysis–watch for the first quarter of 2015 when the holidays are in the rearview mirror, credit cards are maxed, heating oil starts rising in cost and the dollar’s initial boost by japanese devaluing starts to wane…
      I’m glad we got a few extra months to tighten things up……..I’ve never made a prediction of any type whatsoever on these sites or to any friends/family…I don’t believe in date setting…I do think that the early months of 2015 are gonna see things get a lot more squirley for the USSA.

      • Dave Jenkins

        I think your insight is right on target. Come Feb. or March 2015, we will start to see the “real deal Holyfield” in the USSA economy.

      • Mike Smithy

        Depending on who you believe, holiday sales forecasts are all over the map and the National Retail Federation (NRF) has missed the mark for six years in a row. According to Price Waterhouse Coopers data for example, those making less than $50K a year plan to cut their holiday spending by 13% to $377 and even those making more than $50K also forsee spending 1% less than a year ago, reducing outlays to $978. We’ll just have to wait and see whose projections are correct.

    • alan

      The dollar will be over valued and we will have to devalue it to stay competitive “print” .
      There’s your QE4.

    • Bruce

      Yep, the ECB is ramping up to start printing too. They all tie together. It is just somebody else’s turn to print. Remember Big Ben would not say who or how many foreign banks our QE was supporting.

  • rat28

    Collapse?? Japan has been in this stage since the late 80s..They are still surviving. The US economy is much resilient. I don’t see any collapse with the US economy in my lifetime.

  • chekmate2

    Something else I’d like to add to the equation. Interest rates. I’m 60 years old and bought my first house in 1986. The going interest rate for someone with good credit was 15.5% and that was with 20% down. My savings account earned 14% Current rates are around 4% for a 30yr fixed loan and savings rates are around 0.25%. The classic definition of inflation is too much money chasing too few goods. How many trillions of dollars are locked up in the financial institutions? What happens when that money goes into the economy? Prices rise… Money goes into the bond market from the stock market… Inflation goes up and an economy based on cheap money goes into a deflationary tailspin. This sounds contradictory, but it’s not. Look at history for what happens. Google the Weimer Republic of Germany between WWI and WWII. It’s not a pretty picture. I hope and pray I’m wrong, but I believe barter will become the order of the day. Please prove me wrong!

  • Beanodle

    The politicians, the police authorities and the military have told the Fed to do whatever it takes to prevent a collapse of the economy. They fear the consquences (and rightly so)

  • DJohn1

    The problem that I see is all of those people dependent on pensions of one kind or another. That could be a number as high as 1/3 of the country is at any one time seniors.
    Those pensions are often paid by the stock market. I have seen at least one of three pensions near to failing and warnings sent out for the last few years.
    One day the pensions will be gone and that means anywhere from 1/3 to 1/2 of the money people take in each month will simply disappear.

    The chain reaction to the economy of those seniors no longer able to pay their bills every month is going to be staggering and it will effect everybody no matter whether or not they are on pensions or not.
    I do not speak of high economics. I speak of every day, average people out there, pretty much screwed by the big banks.

    I have seen some fairly confusing figures.
    One indicator is the value of the dollar in relationship to how much we pay for energy for everything that we do.
    Specifically the cost of a gallon of gas. It has went from $4.00 to $2.85 in a matter of 6 months. Why?
    Diesel has followed the price down. Diesel is the cost to transport retail goods. It generally is 1/3 or more of the cost of doing business. Especially if you are importing goods from half way across the world.

    A lot of people say gold is the value of a $1. I say the cost of transportation is at least a third of the value that makes up a dollar in material value.
    That means that the dollar shot up in value on that gasoline price alone at least temporarily.
    That doesn’t make sense. It should be going the other direction.
    I say someone is betting on a strong dollar.
    Or they are betting short on the market. That bet is costing millions of dollars a day. I say the market will stay high to at least a week past the election when all the results will be known.
    The other factor is discretionary income and credit to purchase retail goods in the next 2 months. I project that discretionary income is down at least 40% over 3 years ago. That means a huge crash of retail goods unsold over Christmas Season.
    That huge crash will chain react on all the retail stores out there and possibly bankrupt quite a few.
    Depressions occur when Republicans take over government. It is a period of correction brought on by Government tightening its belt on a lot of projects that we simply cannot afford.
    Republicans are businessmen. Democrats not so much.
    The back side of government spending is someone has to pay for it. Usually the person paying is you and me.
    If you put a 100,000 dollar tax on every rich person in the world, it would not amount to a hill of beans. If you raise everybody else a $1 it would total more than all the money collected from rich people. It is called compounding.
    WE outnumber them by quite a large number.
    So whatever solution comes, it has to come from the average person out there, not the rich.
    So if you bankrupt the average person, it is all over.
    And that is the mistake the rich have been making. The rich control things. Not the average person.
    They have been nibbling away at the discretionary income of the average person, and that is why it will all come crashing down.
    Obamacare has been the biggest disaster for the average person in the history of the country. It has reduced the average discretionary income by a considerable percentage.
    In 1970, with a 400 billion dollar debt, Nixon took us off the gold standard. The result was he paid that debt back at about 10 cents on the dollar by inflating and devaluating our currency. He also signed trade agreements with China that softened the blow by flooding our markets with cheap Chinese retail goods.
    The immediate result was goods cost half the price that they did before he devalued. The immediate result was that the average man was being pushed out of the work place by the cheap goods and labor from abroad. Many a corporation bought into the idea of producing goods in cheap labor countries at the expense of everyone else.
    Labor Unions went out of business. Labor Unions had one great asset. That was keeping up with inflation for the average person. When that went away you had the gradual demolition of the standard of living of the entire country.
    Companies said what a person earned, not a negotiation at all. Not a balance between the rich corporations and the average person out there.
    That is what is going to cause the biggest crash in the history of this country and the world. Because gradually the government and the rich are squeezing the average person until there is nothing left.

    • northernconservative

      I like what you’re saying with one exception…not all rich people are the problem. Crony capitalism is the problem. Washington DC and their lobbyists and the media are all in bed together. It’s quite incestuous. They are squeezing the life out of the common man’s ability to succeed and take care of himself. There is so much potential in this country for good that is being crushed by over-regulation and bloated government that there is no way the regular every day family can start a legitimate business and become successful. I believe that success is still possible, but it’s so much harder for the little guy to get around all the rules and regs in place. The big business never has problems finding the loopholes, while the smaller businesses are suffocating under the burden of TOO MUCH GOVERNMENT ON BOTH SIDES.

      • DJohn1

        When I refer to the “rich” I refer to the powers that be in D.C. Most of which have passed the Billion dollar level. The Congress is full of millionaires.
        I do agree that over-regulation and over complication of the taxes is the reason more small businessmen cannot succeed. The statitstics speak volumes on what is wrong.

    • Bruce

      SEARS will be cooked after this holiday season.

      • Mike Smithy

        I like Sears. However, I fear that you are correct.

        • Bruce

          Me too. It’s a shame after 120+ years in business.

  • Paul

    This is why the government does not want people being self-dependent. They need you to make them money while making you slaves to their agenda. Does that sound crazy? Go off the grid, live off the land, grow your own food, make your own clothing, burn wood for energy, and see how long it takes before the government arrives. You must conform the the government or be considered a ‘threat’. How would these bigs banks be if every single American still had the mindset of ‘pioneer’ instead of ‘blind slave’. aka: sheeple. When the economy falls, it will be the fault of of us–we the people–because we did nothing to stop it except make remarks that fall on deaf ears.
    I’m a logical person. And at this point in time, I do suggest all people begin referring back the pioneer mindset and prepare to rough it–the crooks in the big banks are not going to care if you and your family are starving.

  • alan

    I still say this is a slow motion collapse. So slow most people won’t really realize what happened. We’ll be too occupied with Ebola and ISIS and the Kardashians to notice. At the end we will have pawned all our gold and guns to eat. This may be the plan, but I think just a by product. They will print whatever it takes to keep going, or looting your 401k’s.

  • Darth Maul

    I don’t get it!

    Since 2008, everything has turned out well, despite all your doom and gloom talk.

    Bernanke ist a REAL hero.

    There is absolutely nothing to worry about.

    Just wait until we have TTIP, and we will see even higher stock records – and more jobs.

    • Peter Quinn

      If you truly believe that I have a slightly used nuclear power plant in Japan I would like to sell you…

    • Gay Veteran

      TTIP? more American jobs shipped overseas

  • Priszilla

    Assets sounds nice. But those assets are just loans the bank hopes to recover one day. Now let’s assume these mortgages, car loans, consumer loans cannot be serviced by the consumer. Maybe because a hurricane removed the house they hoped to sell, or toxic tap water increased their health bill, or like in 2007 their fuel bill shoots through the roof, then even those 2trillion in assets aren’t worth much.
    All those derivatives can be written off with a stroke of a pen.
    As a consumer and employee you just need to aim for independence. From debt slavery.

  • Priszilla

    The crash comes when all people sell at the same time and nobody wants to buy.
    Some people already sold and are reluctant to get in again. Others divest to get liquid funds to get in when everybody else is selling. This divestment is seen as mini crash by the jittery.
    Others buy physical assets like houses, land, tins, tools.
    I’d be interested in the average square meters of currently traded houses.
    And of newly built houses and flats.
    The crash more likely the larger the houses. A softer crash with smaller houses.

  • John Pallyswine

    TO ALL AMERICANS-

    I just heard a speech by the current psychofreak in office ( they are all lying psychofreaks); hope is coming, better days are ahead,etc…

    All Americans who vote for this psycholiar should be lobotmized

    • John

      You got someone better in mind??

  • Father MacManaway

    Who Cares, I sure don’t. It’s time for a major change. Let the bad times roll.

  • XSANDIEGOCA

    Obama’s Dream: Ebola rages, markets crashing, Jihadis attacking. Martial Law Declared. Game, Set, Match.

  • http://www.themadjewess.net/ The Mad Jewess

    The REAL naysayers are those who are NOT warning of economic collapse and invasion

  • grumpyhillbilly

    I’m actually amazed how many think the country is toast and things are over. The problem is that most aren’t preparing. They can’t seem to grasp that the government won’t be there for them. Nor can they fathom that the government will do anything it needs to thrive in tough times, including martial law, internment camps, and confiscation. Guess in a way they are an economic “denier”.

  • Km

    The wealth is going back to the handful that gave it out!! The rest of the planet will be serfs!! The illegals will have a rude awakening when all the money runs out, they will wind up wishing they stayed where they were!

  • MadAsHellYankee

    The bottom line is that we have a command economy run for the benefit of the politicans and corporations. Not for the people. The only way it is going to collapse is if those politicans and corporations all of the sudden start to be honest or are forced to. That doesn’t happen, this goes on in perpetuity.

    The petro dollar is the key. If that goes bye bye then the dollar goes bye bye. Not a day before. So all this derivitaves stuff, all these creative unemployment numbers, it matters not one bit. The attitude of employers is that “Oh we lost an employee. Our stock price just went up.”

    Gold? Silver? Fools errand.. or you can continue to believe Lindsey Williams 2.0 (V Guerrilla economist) who is wrong more often than right. You can’t eat it, you can’t fight with it.

    • Toilet Paper Dollar

      Well then I guess China and India are fools for buying up all the physical and America that actually sold off most of it’s physical and deals now only in paper is the smart one…right? Even though the paper just represents the tiniest portion of numbers in databases that can be convieniently deleted or lost I guess that’s saftey because we live in a virtual world where physical possession has no meaning…right? So when the computers crash due to natural disaster or cyberwarfare and the virtual money is either destroyed or stolen you can buy, trade, and eat with your imagination…we’ll see how that works out for you modern day Roman!

      • http://ttstblog.blogspot.Com/ Really20

        The most likely form of currency in a post-collapse scenario would be community credit issued free of debt, running parallel to a greatly devalued national currency used for national and international trade. Gold and silver may be used, but only for national trade as organized by the community, and will hold no value as a privately held asset.

  • jakartaman

    The Liberal mindset:
    “What ME Worry”
    The Government will take care of me!

    • ian

      The Conservative Mindset
      What me worry?
      The invisible fairy tale any daddy will take care of it.

      • ian

        Oops I meant sky daddy….Damon auto correct.

  • MOLON LABE

    Sad, but true! THE SHACKLES RETURN: WHY DEBTORS’ PRISONS ARE MAKING AN AMERICAN COMEBACK FRI, 10/31/2014

    One, debtors’ prisons are rarely explored in the classroom or the larger society. And two, these prisons are making a serious comeback in the United States, which is deeply problematic for the poor and working class.

    http://www.globalresearch.ca/the-history-of-americas-debtors-prisons-the-shackles-return/5411258

  • Dave of OK

    Michael, I would love to have your thoughts on a step-by-step unraveling of the financial world, and how the derivative bubble would unfold. I have taken all my IRA retirement funds out of the stock market and presently have it is the local bank (not one of the big five), but, along with your other loyal fans We are trying to determine when will be the time to move everything out of the banking system, as well. As an IRA-CD taking it all out would mean a big tax bill, but I am figuring that the federal government at that point will be in such a mess that they will not be in any shape to notice.

  • underaged

    To Michael and all the perpetual doomsayers … Try to imagine a future where there is NO collapse. Try to imagine yourself moving through life without the snarky attitude that everyone else has is wrong, that you have been ‘saved’ by your pessimism. We get it – you hate paying taxes, you hate the notion that other people might have more money than you, you hate the idea that someone out there is getting a handout at your expense, you hate the idea that other people might have more friends than you, might be smarter or better looking or more talented than you. Seriously – grow up, participate and get over it – you are not unique.

    Because, really, even if we do have a collapse (which would not be the first or last time in history) – it’s folks like you who will just sit around and complain after the fact like you probably did last time. How boring.

    • gfmucci

      I’m taking a CERT (Community Emergency Response Training) right now. I think it is prudent to apply that preparedness mentality to our economic preparedness as well. You don’t believe in a preparedness attitude? That is your choice. It is much more likely that those who ignore the potential for disaster, economic or otherwise, will be the ones who sit around, complain, and expect someone else to help them.

  • porkybeans

    The biblical truth is this nation will be utterly destroyed, burned with fire at the height of its economic power and its people have grown as fat as heifers on spring grass. That is biblical and it cannot fail. Before this nation goes into economic decline it will be destroyed, so if economic collapse is just around the corner then a nuclear preemptive strike is already in the driveway.

    • Gay Veteran

      nuclear preemptive strike from who on who?

    • https://www.facebook.com/pages/Mount-Shasta-Energy-Services/305074483863?ref=ts&fref=ts shastatodd

      “biblical truth”

      i find stringing those two words together to be outrageously funny – but im not superstitious either! :)

  • rawiron1

    I will short the market all the way down to Hell. lol

  • Renee Leedy

    Been hearing this for years. Hogwash!!!

    • Malcolm Reynolds

      In other words, you thought that a ‘collapse’ was akin to someone shutting off a light. *poof*.

  • Grind Junkie

    People believe the dollar won’t collapse because it has the US Presidents face on it

  • wally

    This is most likely what will happen:

    1. The US economy collapses.
    2. BIS the only people with any money will offer to bail out the US? Not for free of course!
    3. The only way we get bailed out is that We agree to join the NWO with the UN as the head. There will then be two systems in the world the NWO and BRICS. We will have a global currency, a global government, a global military and on and on. The US will cease to be a Republic. There will no longer be States rights or anything we have come to known.

    The unknown is the time frame. Many globalists have said that there are too many people in this world. They may let all services die after the collapse. The dollar will be worthless. People won’t go to work. No work, no money no way to pay rent or utilities or buy food. Riots will be allowed to happen. The criminals in this world will kill the weak. With no services such as clean water or trash pickup or sewage treatment diseases will run rampant, millions will die. When it is all said and done, the US might only have 100M or less. There will be survivors but what type of life will there be? Survival gets old real quick. Those preparing that have land and a bunker may only have a years worth of stuff then what? Emerge to a world where you will have no money, no job, no life. It is going to be real ugly. Get your life with God, it is the best thing you can possibly do.

    • http://ttstblog.blogspot.Com/ Really20

      We should not be opposed to world federalism provided that it is democratic and that there are plenty of safeguards and protections for the rights of citizens and countries. Such a system, if implemented properly, would put paid to permanent military confrontation which exists between world superpowers and would allow for the regulation of international bankers on a world scale. But yes, we should be wary of world government if the bankers/corporates/politicians suggest it.

  • Raymond Jensen

    I’m not certain about all classes of derivatives, but some derivatives like options can have a stabilizing effect on the stock market. This is because options are basically insurance. When you purchase home insurance you have essentially bought a put option on your house. Think about how “unstable” home values would be in your neighborhood if no one bought home insurance. Of course if your insurance company were writing more contracts than they could possibly deliver upon, that’s a problem.

  • theblame/e

    You keep hoping for a systemic collapse, but the market keeps moving to new highs; the FED and the Central Banks keep disconfirming each and (so far) every warning about there being consequences. And so it goes. Getting to be kind of old.

  • Alleged Comment

    If the numbers you sprout are indeed true, then there is no way anyone can comprehend what is coming next. NO WAY!

    The numbers are absolutely STRATOSPHERIC! Truly WW3 is around the corner and there will be a lot of ANGRY people and countries.

  • disqus_MZrkvD6tvk

    The question I see is this – How is it that this “illusion” has the staying power to continue despite all that is said and supported about an inevitable collapse? For six years we’ve been hearing this collapse is just around the corner, but what we see is an illusion – the power of this illusion defies all economic logic and until that can be ascertained and explained it will remain just a guess as to whether the economy will ‘ever’ collapse.

    Perhaps it is the illusion that is the life-force for the economy.

  • pat

    of course not , their head is full on programming brain dead and many more garbage from this world

  • ian

    No collapse is coming anytime soon. That is probably why most people can’t imagine it.

    • http://ttstblog.blogspot.Com/ Really20

      The collapse will not be swift but slow. Arguably it is already happening with the increasing financialization of the US economy, a worrying trend which has put an end to superpowers of their day such as the Netherlands, Spain, and Britain. The industrial sector is limping along, supported only by planned obsolescence and a bloated military-industrial establishment.

      Moreover the collapse will come in waves, with crashes and recoveries superimposed over a period of secular decline. The dotcom bubble, housing bubble, and QE bubble are three boom-bust cycles in our terminal decline so far. I give this country until 2030 before a deep and long era of collapse comes.

  • David Hammond

    It wouldn’t just be a collapse in the US, but it would be global. As of right now, things are still afloat. You might as well enjoy it while you can.

  • not me

    Credit unions!

  • CharlesH

    Patience my friends. I really don’t think anyone of us really want to know or worse yet, experience a collapse of our financial system – not just a market crash – but a collapse. All bets would be off and each man and woman for himself/herself. Think about the millions of elderly OR worse yet the millions of people who are addicted to anti-depressants and their supply suddenly disappears. UGLY is one word that comes to mind. The entire nation would become a lunatic asylum within a month.

  • JohnnyComeLately

    This is frightening stuff that could very well happen but many Americans do as ostriches do and stick their heads in the sand.

  • barbarakelly

    How well I know. My daughter inlaw doesn’t see it. It’s hard to try and tell someone who doesn’t want to hear it. I try and hint about it is about all I can do.

  • Michael Dubin

    If QE ended, why is the stock market going up, and why are interest rates still low? Maybe it’s because there was no end to QE. What else is driving the market higher?

    And I say let the big banks fail. The banks you mentioned are criminal organizations, and people should not do business with them on principle alone. Go with a smaller bank or a credit union – you have options.

  • Radioactive Man

    “on the brink of a horrifying economic crash”

    How long have you been saying we’re on the brink? Two years? Three?

    The site (and your others) is nothing more than clickbait for the paranoid, while you laugh all the way to the (presumably crash-proof) bank.

  • Joe D

    Derivative exposure is not understood by most here or anywhere else. Most derivatives (options) are bought/sold as insurance to protect assets and eventually expire worthless. The number is somewhere near 80% that are worthless upon their expiration date. Further to this point, calls and puts are indirectly related so owning them doesn’t ADD to exposure, it mitigates exposure.

    In simple terms…you are a bookie and you take a $10 bet on the Colts and another $10 bet on the Giants. You have no exposure to the result of the game. This author would have you believe you have a $20 risk of loss when in fact, you have a guaranteed profit.

    I like this blog and read it frequently but on this subject, the author is clueless.

    Just sayin’……

  • don larson

    Big Banks are too Big to Fail; and, too Big to Jail! During the Enron Crises, World Comm and others; 101 Perps were prosecuted. And, their Thefts pale in comparison to the Great Wall Street Heist of 2008. So . . . we aren’t able to jail them – – but, assessing big fines instead – – with no admittance of any wrong doing! My worst fear: what happens when these Big Corporate Thieves, become too Big to Regulate? Answer: Game Over! The marriage of Big Corps with Crony, but very Powerful Politicos; closes the Loop on Democracy. Result: Rise of a Fascist State; based on Total Control; which Historians have come to call, “Authoritarianism!” Further, a Police State must be established; in order to keep the Minions and Muffins, down on the Farm – – so-to-speak.

    Looming in the no-to-distant-future; is the Coming Age of Machines. Won’t be very long when there could be a Robo Cop on every corner. Heavens! We have Robo Warriors now that are being tested in Combat.

    But, The Major, Major Problem with Machines; is that they will replace up to 50%; of the Work Force within 20 years or less. Artificial Intelligence is progressing rapidly now; even tho we have been at it for years. Soon, Robotic Machines will be equipped with AI; more powerful than the average working stiff. Machines will be both Smarter; and, more dexterous; and, each new Generation will become smarter and more capable! See where this could be heading? I call it the, “Ultimate Solution;” for Thinning the Herd. The Conversation could go like this: “Sorry Bro; you just can’t compete in the Workplace anymore! You must know too; that our Intellectual Founder – – Ayn Rand; told us 75 years ago; that Society has no place for those that can’t produce; and support themselves. Sorry, but in the New World; there is no Social Welfare here.” (Message: You are History! No longer of any use to the new Society!)

    Think it can’t happen? It’s an almost certainty! If there is one word of advice I could give all of those that Society deems not, “Intellectually,” Smart; but, capable in so many other ways; is to get your hands on as much Farm Land & Acreages that one can possibly get. Ordinary People Can Survive; by building Communities like many of U are trying to do. It’s going to be necessary too; for those of us replaced by Smart Machines; to build an Alternative (Legal) Economy. It can be done; and it can thrive; and . . . just maybe, take a bite out the Profits of the Puppet Masters. But, know this; Corporate Agriculture will be doing everything possible to buy up all available Farm Land; and, they will acquire yours – – by any means possible!

  • Pete

    “Right now, Goldman Sachs has more than 54 trillion dollars in exposure to derivatives but it has less than a trillion dollars in assets.”

    Define assets

  • don larson

    This will likely really piss off the Doubters who have Trashed the Article above. Also, “K,” below, alluded to the fact that a Collapse is nearer than we think. I subscribe to that point of view; and, here’s why: The major Economies throughout the World are in deep trouble; now that China, Russia, and India have climbed aboard. The World seems to be drifting into another Recession; and, it looks like Bernanke’s greatest fear is materializing. We are on the Eve of a Deflationary Cycle. Bernanke knew, that once Deflation acquired a foothold; we, and others, were on a Slippery Slope; it could fast become a race to the bottom. If the GOP adopts & preaches Austerity; by cutting Government Programs; Consumers will pull back; and Corps will layoff Workers. As fear mounts; Consumers tighten up even more; and, another round of layoffs ensues. See where this is heading? Understand why Bernanke has been so worried? Japan tired Austerity 25 years ago; and, they never Recovered! Merkel of Germany; sold (Blackmailed?), Southern Europe into tightening up – – or else! Strategy failed in both instances; because Greece, Spain, Portugal, and others were in deep financial, doo-doo! Unemployment running 26%, in some (most?) instances; GDP Tanked – – big time.

    I will try not to be cynical; but, Germany’s Trade Balance has Ballooned! Nations whose Productive capacities in Southern Europe have constricted; gave Germany’s Exports a huge boost! I am not accusing Merkel – – just say-in . . .

    The U.S. has been leading the World with Someone’s version of what is needed to, “FIX,” the Economy. First, the World tried Austerity & that failed. Then, Token Stimulus; and that was not much more successful; Then, the Notorious, “Print!” Fed printed $4 Trillion Fiat Dollars to buy Nation’s Debt (what a novel idea), then, bought up more Toxic Mortgages; and made the left over balance; available to the Rich, to run up the Stock Market. The Rich borrowed the Money at a rate of .75 – 1.5% of ONE PERCENT; while our College Kids are strapped with I R Loans of 6 – 8.5%! That, my friends; is the Puppet Masters definition of Fairness! Yet, after 3-4 years, and, three, Q’s; the Economy has not really Recovered; regardless of what one hears. We simply aren’t being told the truth; for fear of panic and chaos that, State then, could not control. Thus, in the past 5-6 years; we have had three remedies; all, of which failed!

    Why am I suggesting that, “K’s statement below, might be right on target? The Quiver is empty; there are no more Arrows! That is – – but, with a couple of exceptions; one might be a, “Fix;” the other a postponement.

    Business Week carrying a story this week that,Keynesian ism worked following the Crash of 1929; and, it might work again. Least worth a try, as every other attempt has failed. We could have been building roads, schools, replacing the failing Grids; and, so many other crying needs of the Country; and gotten something for our Money that came out of the Q’s.

    Instead, I expect the GOP will choose the Route of Austerity; and the Collapse will commence.

    The other approach? Bringing back, “The Print,” hoping to Stave off the Collapse a bit longer! But, knowing now that the Q’s haven’t had much of an impact; who really wants to add more debt to make the Rich – – even Richer?

  • Ghost11111111

    Thats Your opinion. Why dont you guys help America become better and stronger, instead of crying about a possible potential storm of hardship coming. Do your best to be part of the solution while there is still hope. This is our country, at one points we were all immigrants to this country. You guys sound like you are taking America for granted. An intelligent person does not sow seeds of hate between other religions. Say what u want America is still beautiful, opportunities for development and enhancement are plentiful in this temporary life. Every country has its issues. Id rather see u put your energy into making America more beautiful for everyone. Anti-government talk is not helping your cause, only isolating you. Be part of the solution. The government does a lot of good for the people here (funds education, medical help, provides food to poor people, keeps things organized) Dont make there job harder by being a headache.

  • Carlo

    Not a very well thought out article… Nothing to fear because the fact of the matter is that these banks practically all failed in 2008 and were saved by the Federal Government issuing debt by selling bonds. If it were to happen again the Government will step in and issue more debt again.
    At some point in time when it cannot pay off these debts it will devalue the dollar and allow inflation to wipe the debt slate clean or in the alternative it will go to war and wipe the slate clean.
    I

  • Bruce

    Foreclose on the Houses of Morgan Chase, Citibank, Goldman Sachs, Bank of America and Morgan Stanley, NOW; then!

  • Fleendar the magnificent

    You are one of the FEW who even know that the Hegelian dialectic even exists, what it is, and it’s principles of an intentionally created problem, leading to the expected reaction, leading to a predetermined solution that benefits the creators of the problem.

    More people need to know about the Hegelian dialectic.

  • srknox

    All that does not matter anymore, thanks to banks, 11-16-14, all cash dollars are subject to market whims, 2-4-7, and adjusted according to market trade value, coming to a bank statement to you soon

    • srknox

      Ready bank runs

  • m Astroj

    There is one thing, I see, that is not being taken into account here with the amount of assets at each bank cited: Several were forced to merge with other banks or investment entities to avoid a financial collapse last time around.

    E.g.: Bank of America was forced to acquire Merrill Lynch.

    The assets of Merrill are counted among the holdings for Bank of America. And their value continues to rise. Same thing with Wells Fargo and their merger with WaMu (Washington Mutual). And those assets, bad as they were, are appreciating in value.

    Now, I don’t doubt that the US financial system has some big troubles. And I agree with many of the points made here. However, to compare “apples to apples”, one should cite the values of assets in both institutions (like BofA & Merrill) before the 2007 – 2008 recession and their value today.

  • kcmclvr

    “Even though a few prominent “experts” such as New York Times columnist Paul Krugman have declared that the “too big to fail” problem is “over”…..”
    Paul Krugman is an economic expert? it’s a joke! He is an economic illiterate! Politicians love Keynesian stimulus based model as it bestows enormous political power in short term. He knows which side is buttered and became the pet dog for all the elite who love the power of the destructive Keynesian economics. After collapse, he will disappear along with political elite. Before that, he must return Nobel prize he got by using intellectual deceit and dishonesty. Soon, he will go down in history as the man that spearheaded the destruction of modern fraudulent and Ponzi economics.

  • jack loach

    Update
    — Dec… 2014.

    Full
    Story— “Google ” —- The Crimes of —–Pictet &
    Cie. Bank.

    1996 —–
    F.S.A— Breach in London.

    2003 —– F.S.A.
    — States rogues operating in Pictet’s London office. Ivan Pictet

    states
    that documents were forgeries but were later proved to be genuine in

    the
    British Courts. He had documents destroyed in their London office —

    hoping
    to hide the crimes.

    2007
    .- – – The Securities and Exchange Surveillance issued a
    recommendation

    that
    the Prime Minister and The Commissioner of the FSA to take
    disciplinary action against Pictet Asset Management – Japan Ltd.

    2008
    .– Dec. – Pictet Bank state – ” We have never chosen
    any funds linked to Madoff.

    2011 – – – Madoff
    Trustees sue Pictet & Cie. Bank for $156 Million.

    2011- – – Pictet &
    Cie Bank abetted a Bribery Scheme – Oil company sues Pictet for
    $350Million

    2012 – – – April
    – Geneva Bank Pictet used in Offshore Tax Scheme. ( USA.)

    2012 — – June.
    — Published in Anglo INFO .Geneva.— USA Trust Fund Investors were
    sent false and fraudulent documents by Pictet Bank in order to
    collect large fees. ( Like MADOFF)

    Even after the SEC
    in the USA uncovered the fraud Pictet continued to charge fees and
    drain whatever was left in these accounts. Estimated that $90 million
    lost in this Pictet Ponzi scheme.

    2012 – – – July.
    — De – Spiegel. — states – Pictet Bank uses a letterbox
    company in

    Panama
    and a tax loophole involving investments in London to gain

    German
    millionaires as clients.

    2012
    – – – August —- German Opposition Leader accuses Swiss Banks of
    “organised crime.”

    2013
    — Jan.— Swiss MP’ table motion to freeze Tiab Mahmud’s assets of
    ” criminal origins”

    held
    in Swiss banks – $18 million held in 5 accounts at Pictet &
    Cie. Bank. Bahamas.

    Ironically
    the Pictet & Cie.Bank partners are bigger criminals than the
    criminals who have accounts in the their bank.

    The
    bank is now seeking to re-structure — to cut the partners liability
    – hoping to off load their decades of criminal responsibilty –
    and move onwards to carry out new crimes. The Germans are

    right
    — the bankers should go to prison if found guilty of financial
    crimes.

    Swiss Bank
    Accounts. Dec . 2014.

    Is your monies safe
    in these accounts —- definitely NOT.

    Would you get your
    money back if every body decided to withdraw all their accounts –
    NO WAY.

    Economic Experts
    say that there would only enough money to repay 50% of their clients.

    Are you going to be
    in the 50% — that loose your money.– Get it out NOW.

    2012 — – June.
    — Published in Anglo INFO .Geneva.— USA Trust Fund Investors were
    sent false and fraudulent documents by Pictet Bank.Switzerland. in
    order to collect large fees. ( Like MADOFF) —Even after the SEC in
    the USA uncovered the fraud Pictet continued to charge fees and drain
    whatever was left in these accounts. Estimated that $90,000,000
    million lost in this Pictet Ponzi scheme.

    2012 – – – July.
    — De – Spiegel. — states – Pictet Bank uses a letterbox
    company in

    Panama
    and a tax loophole involving investments in London to gain

    German
    millionaires as clients.

    2012
    – – – August —- German Opposition Leader accuses Swiss Banks of
    “organised crime.”

    All
    the fines that crooked Swiss banks have incurred in the last few
    years exceeds £75.Billion.

    It
    is also calculated that the secrecy ” agreements” with
    regards to tax evation by their clients will cost the banks another
    £450 Billion.( paid out of your monies.)

    The
    banks are panicking — the are quickly restructuring their banks
    —- from partnerships —

    to
    ” LIMITED COMPANIES.” —– this will probably mean that
    in the future — they could

    pay
    you only 10% of your monies ” if you are one of the lucky ones”
    —- and it be legal.

    Peters
    &Peters – Partners.— (1999—2014)— guilty.

    Pictet
    & Cie. — Partners. — (1999 — 2014)—guilty.

    The
    bank and it’s officials/lawyers deliberately withheld crucial
    documents requested under a High Court order. The bank and it’s
    officials/lawyers deliberately withheld evidence from the Police, and
    one of it’s account managers Susan
    Broadhead gave a false witness
    statement to the Police.

    Another one of it’s
    managers Nicholas Campiche
    ( Now Head of Pictet – Alternative Investments.) concocted a letter
    pretending to be a client and closed his account. The senior partner
    (Ivan Pictet.) sought
    to have numerous documents destroyed,along with those copies held in
    their London office’s of Pictet
    Asset Management. Initially
    stating that they were forgeries then their lawyers Peters
    & Peters – Monty Raphael Q.C.–and
    the barrister Charles Flint.Q.C.
    later had to admit in Court that
    the documents were genuine.

    British
    Parliament. Hansard .29th
    March 2007.

    Barry Sheerman
    .M.P.—quote.

    ———“
    Constituents of mine have lost
    £2 million through fraud. The fraudster used Pictet & Cie – – a
    French Bank – – and Pictet Asset Management to back the fraud being
    perpetrated.””

    Both Ivan Pictet
    and Monty Raphael.Q.C. conspired to withhold crucial documents
    requested by the High Court – the FSA — and the Police Fraud
    Squad.

    Written
    Parliamentary Questions received by the table office ..

    (1) To ask the
    secretary of state what steps he is taking to ensure that Swiss Banks
    such as Pictet & Cie do not evade criminal prosecution under EU
    law even when the illegal act is committed by a London based
    subsidiary.

    (2)To ask the
    secretary of state what steps he is taking to protect the rights of
    UK citizens who seek redress following criminal activities by Swiss
    banks with subsidiary offices located in London.

    *** We
    note that there has been a sharp increase in Peters & Peters
    partners leaving to go to other practices. Moving does not alleviate
    them of any responsibility from any illegalities that may have
    occurred at Peters & Peters during their partnership tenure. From
    1999 onwards.

    The consensus of
    opinion is the Pictet & Cie should be prosecuted , and that their
    U.K. banking licence should be taken away.

    Their Solicitors at
    Peters & Peters .London “ struck off and prosecuted..”

    *** Started
    campaign — June 6th.2008.

    5 .5years —-
    approx 10 .5 million e-mails – – – but still no writs, injunctions or
    threats of litigation – – – WHY – – – because it is all true.

    *** . The bigger
    they are — the harder they fall.!!!

    In
    America —- they would have all been in prison for the last seven
    years.

    Feb 2013,—
    Pictet & Cie Bank Partners remove their unlimited liability.

    They realise that
    all their personal wealth is at risk , the people they have conned
    might want their money back.

    Full Story.*** —”
    Google” —–insert.— Pictet & Cie. Bank.

    or

    Insert– ( Charles
    Pictet. Banker.

    Insert– ( Ivan
    Pictet.Banker.

    Insert– ( Jacques
    de Saussure.Banker.

    Insert– ( Nicolas
    Pictet. Banker.

    Insert– (
    Jean-Francois Demole.Banker.

    Insert — (
    Philippe Bertherat. Banker.

    Insert– ( Renaud
    de Planta. Banker.

    Insert. — ( Monty
    Raphael.Q.C.)

    Over
    the last eighteen months we posted the following on hundreds of sites
    . —

    ***
    Were currently waiting for the West Yorkshire Police ;-

    Chief
    Constable . Sir Norman Bettison

    Forces
    Solicitor. Mike Percival.

    Head
    of Economic Crime Unit. Det Chief Inspector. Steven Taylor.

    to
    see if they continue to cover up this case like the FSA. – “
    watch this space.”

    We
    can now state that all the above have been removed from their posts.
    All three facing criminal allegations.

    These
    three senior police officers helped and assisted the Pictet & Cie
    Bank in keeping crucial criminal evidence from the High Court and
    Court of Appeal.

  • jack loach

    Swiss Bank
    Accounts. March. 2015.

    Is your monies safe
    in these accounts —- definitely NOT.

    Would you get your
    money back if every body decided to withdraw all their accounts –
    NO WAY.

    Economic Experts
    say that there would only enough money to repay 50% of their clients.

    Are you going to be
    in the 50% — that loose your money.– Get it out NOW.

    2012 — – June.
    — Published in Anglo INFO .Geneva.— USA Trust Fund Investors were
    sent false and fraudulent documents by Pictet Bank.Switzerland. in
    order to collect large fees. ( Like MADOFF) —Even after the SEC in
    the USA uncovered the fraud Pictet continued to charge fees and drain
    whatever was left in these accounts. Estimated that $90,000,000
    million lost in this Pictet Ponzi scheme.

    2012 – – – July.
    — De – Spiegel. — states – Pictet Bank uses a letterbox
    company in

    Panama
    and a tax loophole involving investments in London to gain

    German
    millionaires as clients.

    2012
    – – – August —- German Opposition Leader accuses Swiss Banks of
    “organised crime.”

    All
    the fines that crooked Swiss banks have incurred in the last few
    years exceeds £75.Billion.

    It
    is also calculated that the secrecy ” agreements” with
    regards to tax evation by their clients will cost the banks another
    £450 Billion.( paid out of your monies.).

    The
    banks are panicking — the are quickly restructuring their banks
    —- from partnerships —

    to
    ” LIMITED COMPANIES.” —– this will probably mean that
    in the future — they could

    pay
    you only 10% of your monies ” if you are one of the lucky ones”
    —- and it be legal.

    Google
    —- The Crimes of —- Pictet & Cie Bank.

  • jack loach

    Sods —–
    Law.

    March.—-
    2015.

    For almost two
    decades we have strived to get justice for the injustice we have
    suffered at the hands of a world renowned bank— PICTET & CIE.
    BANK.

    Two yorkshiremen
    both running their own small family businesses trying to resolve the
    problem by taking all the correct legal procedures to recover their
    monies.

    The matter was
    raised in Parliament – twice– the FSA investigated the matter
    concluding that PICTET had rogues operating in their London Bank —
    but the rogues had left —saying no one left to prosecute.??? —–
    so there.

    We then
    approached the Financial Ombudsman Service. (FOS) — our case was
    dealt with by seven different people —- then our numerous E-Mails
    were ignored — nobody would speak to us ——-so there.

    We then asked the
    SFO ( Serious Fraud Office.) to investigate our case —- the
    criteria of our case ticked all their boxes. — we were instructed
    not to send them

    any
    documents/evidence.—— in fact they wrote to us advising us to go
    to the Citizen’s Advice Bureau.(CAB.)

    Richard Alderman
    the SFO boss —- who responded to our letter was the same man who
    would not investigate the “ Madoff” scandal or the “Libor”
    fiasco.

    The MP’s
    committee —- said he was sloppy— and the SFO was run like “
    Fred Karno’s Circus” —– it was an office of fraud.—– so
    there.

    Our M.P.
    approached our local Chief Constable to investigate—– he was
    called—- Sir Norman Bettison— Chief Constable of West Yorkshire
    Police —- a force that made “ Dad’s Army” look like the S.A.S.
    They were inept – corrupt —malicious — from top to bottom. We
    were criminally dealt with by the Forces Solicitor—- the Head of
    the Economic Crime Unit —-and the Chief Constable —– so there.

    We were then
    advised to pass our complaint against West Yorkshire Police to the
    I.P.C.C. – which we did — they advised us to make our complaint
    to —- the West Yorkshire Police — we did with reluctance — all
    we got was abuse and obfuscation. —– so there.

    Sir Norman
    Bettison —- The Forces solicitor— and the Head of the Economic
    Crime —- have all been removed from their posts and facing criminal
    allegations.

    —— so there.

    We even sought
    justice through the Courts — culminating in a visit to the Court of
    Appeal-London.— On leaving the Courts of Appeal that day our
    barrister a “rising star” informed us — that if that was
    British Justice then you can keep it. He quit the law and moved to
    Canada —– so there.

    A few years later
    we learned that one of the judges ( Lord Justice.) in our case at the
    Court of Appeal was related to a senior executive of the Pictet Bank
    —–so there.

    The Ministry of
    Justice passed our case to Lord Myners to investigate — we would
    rather have had Mickey Mouse or Donald Duck do it. — to this day we
    don’t know

    —whether he did
    anything or not —- probably not — seeing that his wife was on the
    Pictet Prix Board.

    Pictet & Cie
    .Bank — voted private bank of the year 2013.

    Ivan Pictet —-
    Voted banker of the year 2012. —- the senior partner — lied on
    numerous occasions and had documents destroyed — also said genuine
    documents were forgeries. —– so there.

    Ivan Pictet in
    Oct. 2013 —- Given the Legion of Honour — but saying that —-
    honours were given to Hitler — Eichmann — Mussolini —Franco
    — he’s in fitting company. —-so there.

    MONTY
    RAPHAEL.Q.C. — Peters & Peters.London. They were the banks
    lawyers.

    Monty
    Raphael.Q.C. along with Ivan Pictet withheld crucial documents
    requested by the High Court —- the FSA —- and the police Fraud
    Squad. —-so there.

    Monty
    Raphael.Q.C. became an Honorary Queens Counsellor in March. 2012.

    Monty
    Raphael.Q.C. became a Master of the Bench in Nov.2012.

    An expert in
    Fraud —the Doyen of Fraud Lawyers. —– so there.

    This says a lot
    about Banks — and their lawyers –the consensus of opinion is that
    they are highly paid “crooks” —- no wonder they voted Ivan
    Pictet banker of the year. — and Monty Raphael a Queens Counsellor
    – “crime does pay”?

    It appears that
    crimes in the “establishment.” are honoured by their peers.

    “HONOURS
    AMONG THIEVES.”

    Full Story.—-
    “google ”

    Insert.—– The
    Crimes of —– Pictet & Cie Bank.

    or
    insert

    Ivan Pictet/
    Monty Raphael Q.C.

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