Market Crash News /marketcrashnews Market Crash News - Market Crash Information Mon, 13 Mar 2017 23:11:18 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.3 Pay attention to these three financial experts if you want to survive the coming financial superstorm: Michael Pento, James Rickards and Gerald Celente /marketcrashnews/2017-02-20-three-financial-experts-survive-the-financial-superstorm-michael-pento-james-rickards-gerald-celente.htmlv Tue, 21 Feb 2017 03:30:21 +0000 http://162.244.66.231/marketcrashnews/2017-02-20-three-financial-experts-survive-the-financial-superstorm-michael-pento-james-rickards-gerald-celente I’m on the record with an all-out warning that a horrific “financial apocalypse” is coming during President Trump’s first term (see my mini-documentary videos below). As a laboratory scientist, I’ve long had a natural gift for mathematics, and I can assure you that the mathematics of today’s global debt leverage fiasco point to a 100% certainty of a colossal “correction” in the very near future.

It is 100% known, in other words, that the Ponzi scheme of central banks, fiat currency and runaway global debt will come to a catastrophic end. The only unknowns are the exact nature and timing of the “tipping point” event that will push it over the edge. No one can accurately predict that timing, but geopolitical forces increasingly point to a high likelihood of it cratering during Donald Trump’s first term as President.

Why I listen to Michael Pento, James Rickards and Gerald Celente

To stay informed on these issues, I make a point to read books and listen to interviews by intelligent, informed financial analysts who also have the backbone to speak out against the (insanely stupid) status quo.

Three of those informed, gutsy financial analysts are Michael Pento, James Rickards and Gerald Celente (I also listen to Charles Nenner, Gregory Mannarino and John Williams, too, among others).

In my opinion, if you’re not staying up to date on these three brilliant financial analysts, you’re not really prepared for the financial collapse that’s coming. (Stay informed at COLLAPSE.news) While critics might say these people are always “preaching doom and gloom,” that’s only because financial doom has genuinely been on the verge of being triggered for many years now. Incompetence, greed and stupidity are coalescing toward a catastrophic collapse, and it’s the status quo propaganda pushers claiming “everything is awesome!” who are going to get burned the worst.

Check out the video interviews below to hear each of these three analysts explaining what they see unfolding in 2017 and beyond.

I also want to give a shout out to Greg Hunter at USAwatchdog.com, who continues to prove himself as one of the most honest, reliable and high-integrity independent journalists on the ‘net. (I’ve told my programmers to add USAwatchdog.com to Censored.news so you can follow his headlines as they’re released.)

Michael Pento

Author of The Coming Bond Market Collapse. Heed his warnings or you might lose most of your savings:

James Rickards

A brilliant financial analyst who is extremely well versed in the risk exposures of derivatives. He was part of LTCM during the 1997 near-collapse of the global debt Ponzi scheme. Rickards is highly technical, and he’s my favorite economic number cruncher. Check out his book and audio book: The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.

Gerald Celente

Needs no introduction. Celente is a classy, intelligent, ballsy New Yorker who I consider to be a national treasure of financial wisdom and wit. (Celente is also a cunning linguist as you’ll hear in his hilarious mockery of the status quo.)

My own analysis

Don’t miss my mini-documentary called Faith Money and the Coming Collapse

I’ve also published another mini-documentary on how Donald Trump is being set up to be the scapegoat for the planned, engineered global financial collapse:

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Pension panic: The coming financial bubble nobody is talking about /marketcrashnews/2016-12-28-pension-panic-the-coming-financial-bubble-nobody-is-talking-about.htmlv Wed, 28 Dec 2016 16:17:33 +0000 http://162.244.66.231/marketcrashnews/2016-12-28-pension-panic-the-coming-financial-bubble-nobody-is-talking-about For millions of public sector workers in the U.S., state-run pension funds are the only chance left for a comfortable retirement. In the hopes of providing a stable future for their families, an entire generation was duped into putting decades of their earnings into these supposedly ‘risk-free’ investments. Unfortunately, those who have entrusted the government to manage their life savings may end up destitute as a result.

(Article by Shaun Bradley, republished from TheAntiMedia.org)

Budgetary shortfalls that have plagued Detroit for years are now spreading to other municipalities. Since 2008, six local governments have been forced to renegotiate their debts in bankruptcy court, with many others on the same trajectory. The scale of the problem has been repeatedly understated by the media, but across the nation, a somber reality is beginning to set in. [1, 2 3]

States with large populations, like California, often find themselves in the spotlight when it comes to deficits, but there are several others that are in even worse shape. Illinois, New Jersey, and Connecticut are among those facing the biggest hurdles to meet their obligations to retirees. Instead of maintaining a surplus, politicians have continuously prioritized spending today on things like sports stadiums, for example, to ensure re-election. Policymakers on both sides of the aisle have echoed solutions that involve either massive cuts to benefits or shifting the financial burden onto the taxpayer. The price to prop up these insolvent funds will come in the form of higher property taxes, income taxes, and other stealth forms of subsidization. [4, 5]

The ongoing exodus of people from the Northeast to states that offer better opportunities and a lower cost of living is putting even more stress on the already fragile system. Pension payouts depend on the contributions of current workers, and as the labor force dwindles, so does the money available.

Pushing through substantial reforms is counter-intuitive for our representatives. If they do the responsible thing and defer excess spending in the present, it will undoubtedly have a negative impact on their voter base. America’s political pastime of kicking the can down the road continues, but the options to keep this shell game going are running out.

Read more at: TheAntiMedia.org

Sources:

[1] MichiganRadio.org

[2] Governing.com

[3] WSJ.com

[4] Fortune.com

[5] Mercatus.org

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Jim Sinclair: Prepare for the biggest financial apocalypse in history /marketcrashnews/2016-12-16-jim-sinclair-prepare-for-the-biggest-financial-apocalypse-in-history.htmlv Fri, 16 Dec 2016 19:21:18 +0000 http://162.244.66.231/marketcrashnews/2016-12-16-jim-sinclair-prepare-for-the-biggest-financial-apocalypse-in-history Legendary gold and market expert Jim Sinclair believes that we have killed capitalism. He says that “Markets do not exist anymore . . . and you can’t time what does not exist.” Sinclair feels that a huge transition is underway and that our current system is beyond repair. A new system is on the way and the old one will end with a bang. Sinclair explains, “Right now, they’re eating each other, and the eventuality is, getting back to the steam pot, there is going to be a day when there is only going to be one shark left, one very fat shark left, and what happens next?  That shark starves to death because it ate all the food.  So, the end of this is the explosion of that steam cooker which is called capitalism.”

Sinclair points out that over-the-counter derivatives have outgrown world money availability. He blames high tech for “shooting the goose with the golden egg.” There used to be thousands of people gathered at the New York Stock Exchange, now there are just dozens. Sinclair believes there is no market in anything, including silver and gold. If rates on 10-year Treasury bonds break 3%, algorithms will all turn to the largest market in the world — interest rates.

We are going to see the fastest moving rates interest rates we’ve ever experienced. This will impact every derivative out there because all derivatives have an interest rate criteria. Gold is a storehouse of value, not a currency. It doesn’t need a market because it can be traded physically. China and Russia don’t buy gold as an investment, they buy it as a policy because they can’t see any solutions to the situation we are in. “They have killed us, and they have killed themselves. There is one fat shark out there that is now about to experience starvation,” said Sinclair.

Sinclair believes that when it’s all said and done, there will be a catastrophic big bang. The only thing left will be our savings accounts. Savings accounts will be the new gold because all currencies are falling in terms of being a storehouse of value. “Capitalism is finished,” Sinclair continues, “I can’t tell you what the next system will be, but capitalism is over because the heart of capitalism is markets.  Without markets, you cannot have a capitalistic system — it’s over.”

It seems as if the financial system is set to fail regardless of any counter-efforts. If we are headed into a new system, let’s hope it’s a better one.

Sources:

UsaWatchdog.com

SilverDoctors.com

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Dow 20,000: Globalists are setting up the perfect storm of financial apocalypse to be unleashed once President Trump takes office /marketcrashnews/2016-12-07-dow-20000-globalists-preparing-catastrophic-financial-firestorm-president-trump.htmlv Thu, 08 Dec 2016 00:52:12 +0000 http://162.244.66.231/marketcrashnews/2016-12-07-dow-20000-globalists-preparing-catastrophic-financial-firestorm-president-trump It’s all so obvious at this point. Hilariously, there are no more “markets” in the market anymore; everything is rigged to rise or fall based on what serves the interests of those pulling the strings. Supply, demand, risk and scarcity no longer function in any rational way whatsoever, and that means the end is rapidly approaching for the “everything is awesome” debt bubble chapter of human history.

Right now, the U.S. stock market is surging, with the Dow leaping toward 20,000, a number rooted in fiscal insanity and delusional expectations. There are no fundamentals that support a 20,000 Dow, but fundamentals have long since ceased to matter in a financial world hyperventilating on debt fumes while hallucinating about utopian economic models that will soon prove to generate fools instead of real wealth.

Today I’m going on the record with a prediction that I’ll offer with near absolute certainty: The rigged markets that now seem to defy gravity will be deliberately and destructively imploded under President Trump for all the obvious reasons. There will be financial chaos like we’ve never seen before: Investors leaping off tall buildings, banks declaring extended “holidays” that freeze transactions, and California pensioners slitting their wrists after they discover their promised pension funds were just vaporized by incompetent bureaucrats.

The destruction of wealth we are all about to witness will be unprecedented in human history. I’m talking about trillions of dollars in electronic wealth vanishing seemingly overnight due to de-leveraging (unraveling) of the debt Ponzi schemes upon which they were originally built. People will go to sleep one night as millionaires or billionaires, and they will wake up the next morning penniless and destitute. That’s the financial apocalypse that’s coming. All the media’s reporting on “positive” market news is truly nothing but fake news. Soon, this will all become obvious to even the most oblivious.

The Trump administration will be targeted for termination via a punitive, engineered financial firestorm

There is no question whatsoever that this is coming. The only uncertainty concerns the timing of it. My prediction is that it will occur during the first term of President Trump, and my best guess is that it will begin in early 2017, perhaps immediately after Trump is sworn into office. The final goal of Barack Obama, forever an enemy of America and a traitor to the people, will be to thrust America’s $20 trillion national debt onto the shoulders of Donald Trump, then blame Trump for the inevitable fallout.

I’m so convinced of all this that I recorded a mini-documentary months before Trump was even elected. That documentary, entitled “Blaming Donald Trump,” is shown below. This documentary is so important for everyone to watch and understand that I’ve even posted a full transcription of every word stated in the documentary.

Watch and read here:

 

Blaming Donald Trump for the Inevitable Economic Collapse – Video Transcript

It’s only at the lower level of globalist control that the establishment doesn’t want Donald Trump to win. At a much higher level, the real globalists — that really pull the strings of power across our globe — actually need someone to blame for the massive global debt catastrophe that they can’t hold back for much longer.

So, Donald Trump winning the election in the United States fits perfectly into their narrative to have a scapegoat for the absolute worldwide economic catastrophe that’s about to be unleashed. It’s not merely about controlling societies, it’s about making sure that history blames the correct victims of the failed economic policies of globalists. That’s the role that Donald Trump might unwittingly be forced to play if he does win the White House.

Should we vote for Donald Trump? Absolutely! He’s the best shot we have at ripping apart the globalist criminal racketeering government that has been running the world for far too long — keeping people trapped in cycles of poverty and government dependence. So yeah, we need somebody like Donald Trump to go in there and really turn the system upside down. But it’s not enough to vote for him and then walk away. If you vote for Donald Trump, and you put him in the White House, that’s when the real fight begins; that’s when you have to really go to war [alongside] Donald Trump against the globalists who are going to try to crash the system out from under a Trump presidency.

The leftist media is really globalist controlled fake media. I am talking about MSNBC, CNN, Washington Post and so on. This is the same media that’s been trying to desperately destroy Donald Trump during this entire election. They will — if Trump wins the election — go to war with his administration. They will try to make things look as miserable and as devastating as possible. Central banks will join in on this bandwagon as well. They will do everything to wage this — you might call it the “Destroy Trump Campaign.”

It’ll be a worldwide campaign where the central banks will raise interest rates, halt quantitative easing and do everything in their power to crash the system so that they can then blame it on Trump.

That’s the role of the state-run media, even though in reality, it is Obama who has put us in over 19 trillion dollars in national debt. It’s the policies of Obama and liberal politicians, throughout recent history, who have destroyed the economic base of America. NAFTA and the TPP — the globalist’s trade policies — have gutted America’s economy, wiped out the middle class and destroyed the manufacturing sector.

It’s these policies that have put us in economic servitude and desperation in America. Right now, America is only running on economic fumes. Those fumes are on the verge of no longer existing, and the system is on the verge of systematic collapse. When that happens, the number one goal of the liberal economists, Democrat presidents, and presidential candidates is to blame someone who is a conservative — and that’s Donald Trump in their minds.

They have to blame Donald Trump, they have to blame Rush Limbaugh, or they have to blame conservative ideology. They have to blame the very idea of low taxes and low regulation, and blame any government that might allow business innovation (or allow individuals to make their own free choices in a free market society). This entire idea has to be wiped out.

It’s really ideological genocide that is being carried out now by the globalist who hate freedom, who hate individual liberty, who hate everything America stands for and everything America was founded on; and they have to find a way to completely wipe it out forever. One of the best ways to accomplish that is to engineer a global devastating economic collapse that thrusts over fifty percent of the first-world population into absolute destitution — and then find a conservative economic candidate or president to blame for that entire process.

This is the long play… this is a long-term strategy that the liberal globalists are putting into motion. They can use a Donald Trump victory to actually achieve their long-term aims. Now, it doesn’t mean that it’s all set in stone, because if Trump has enough popular support, then he can in fact perhaps thwart this idea of the globalists, thwart their plans and make sure that they do not succeed in what they are trying to pull off.

What Trump is going to need in order to carry out his policies — of real reform for America — is low taxation and high business innovation. He’s going to need grassroots support. He’s going to need millions of people across America who are willing to go to bat for him in their local communities. You are going to have to, under a Trump presidency, call for the arrest, indictment and prosecution of certain individuals who have led, or who have undermined democracy, with a very deliberate campaign of disinformation and subversion throughout the mainstream media. Certain people in the media are in fact operating as agents against America. They are sort of almost like KGB agents. They are subversives and they are undermining democracy. They are destroying the rule of law. They are defending the actions of criminal cartels like the Clinton Foundation.

So there needs to be, under a Trump administration, a wholesale housecleaning operation which begins with mass arrests and fair trials of individuals who have for the last eight years plus engaged in criminal cartels against the people of America. This includes people like Lois Lerner of the IRS, Hillary Clinton, Debbie Wasserman Schultz (formerly of the DNC), Bill Clinton and Eric Holder. They are engaged in the very definition of criminal racketeering. As Rudy Giuliani recently described, and he says if he were a federal prosecutor, he would be prosecuting people like this, right now, and that’s exactly what needs to happen. So when Donald Trump attains the White House, it’s not enough to just say: “Hey I voted for Trump and he’s in the White House, and now he’s going to do everything.” That’s actually where the real battle just begins.

You know, we’re often told in a democracy that voting is your greatest power. At one level that’s true, but not in times of revolution. It’s just the beginning of your power, of your obligation. There may be times when we the people may have to literally take to the streets to make our voices heard — to demand that law and order be upheld. There may be a time when we have to, as Americans, stop the United Nations from asserting some sort of occupation power in the United States.

One of the scenarios that looks likely to unfold from all of this, is that after President Obama leaves the White House, he attempts to maneuver himself into a top position at the United Nations. In that kind of scenario, it’s really going to come down to, believe it or not, patriotic Americans standing up and saying, “No we will not allow a foreign globalist force to occupy invade and control our nation.”

Sadly, I see at least one possibility of that descending into real violence and bloodshed, which is something that we all wish to avoid. But history has shown us that there are times where defending your national sovereignty, and defending your nation’s freedom and liberty, sometimes requires the last desperate act of self-defense — against aggressors, against occupiers, and against enemy forces from abroad that wish to take over your country. That scenario is one of many that could quite literally unfold in America.

This is the primary reason why they want to take away the guns — before that ever happens. A disarmed American citizenry is much easier to occupy and control. An armed citizenry is extremely difficult to do battle with, and you’ve got over 300 million firearms — at least a hundred million people know how to use them. Due to this, the idea of a military occupation and takeover of America succeeding is quite far fetched.

Interestingly, they don’t even really need to win from a military perspective, in order to achieve some of their goals. One of their goals is causing massive chaos across the United States — so they can profit from the consolidation of power that happens in the aftermath of martial law. If they can control the food supply, they can put President Trump in a very compromising position where he has to agree to some kind of concessions in order for the ‘oil to flow again’. That’s a leverage point they can use to try to either get Trump out of office, charge him with crimes, seize control of the White House, or any number of other scenarios in which the people are losers and the globalists win.

If you look at the global chessboard of what’s really happening, you can see all the possible moves, outcomes and scenarios for the next 50 years. There are very few outcomes in which Liberty remains intact. There are some scenarios in which the people win and maintain their liberty, but, those scenarios are some of the more drastic ones (and perhaps less likely in some ways).

Interestingly, one of the biggest factors in all of this is whether or not the global government can keep control of the debt system and the economy while the global revolution happens. If the banking system crashes, the central banks crash. If the power grid goes down or if we have any kind of a long duration collapse scenario, then centralized government really begins to fail and fall. What we see in that case is really the rising up of more regional control and perhaps regional nation-states, such as the Republic of Texas.

For example, when the former Soviet Union was weakened through economic policies and the escalation of weapons expenditures during the Reagan era, the upshot of the economic failure of the USSR was the balkanization of the former Soviet states (that have since become independent states). Now, we have a nation called Russia and other nations that use to be part of Russia — such as Georgia. So, if Washington DC loses power, then, we are likely to see very much of the same outcome in the United States. Especially where we have a balkanization, there will be the rise and the assertion of individual nation-states, sovereignty.

You have this big spectrum of possible outcomes, and the roles that the globalists play in this, and the roles of people like Donald Trump. At one end of the spectrum you have extreme globalist control which would include Obama running the UN and a UN occupation of America. You would have the surrender of national sovereignty to globalists agendas. On the other end of the spectrum, you actually have an implosion of globalist control, and the rise of decentralized nation-states — a global balkanization — sort of a collapse of centralized power down to more local power, states’ rights. These are the two forces that are really battling each other for the future of human civilization.

It’s not certain at this point which force is going to win. All we can really say with certainty is that we are headed for times of extreme chaos and global poverty.

We know that the centralized system of control — controlling the money supply via currency system and central banks — will fail. We know that if we continue down that road, then we will end up with an entire nation that looks like Detroit (which looks like a bombed-out third world country that has fallen into despair and despotism). That’s where the entire country is headed if we don’t turn this around.

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We are being set up for higher interest rates, a major recession and a giant stock market crash /marketcrashnews/2016-11-25-we-are-being-set-up-for-higher-interest-rates-a-major-recession-and-a-giant-stock-market-crash.htmlv Fri, 25 Nov 2016 15:41:02 +0000 http://162.244.66.231/marketcrashnews/2016-11-25-we-are-being-set-up-for-higher-interest-rates-a-major-recession-and-a-giant-stock-market-crash Since Donald Trump’s victory on election night we have seen the worst bond crash in 15 years.  Global bond investors have seen trillions of dollars of wealth wiped out since November 8th, and analysts are warning of another tough week ahead.  The general consensus in the investing community is that a Trump administration will mean much higher inflation, and as a result investors are already starting to demand higher interest rates.  Unfortunately for all of us, history has shown that higher interest rates always cause an economic slowdown.  And this makes perfect sense, because economic activity naturally slows down when it becomes more expensive to borrow money.  The Obama administration had already set up the next president for a major recession anyway, but now this bond crash threatens to bring it on sooner rather than later.

Article by Michael Snyder

For those that are not familiar with the bond market, when yields go up bond prices go down.  And when bond prices go down, that is bad news for economic growth.

So we generally don’t want yields to go up.

Unfortunately, yields have been absolutely soaring over the past couple of weeks, and the yield on 10 year Treasury notes has now jumped “one full percentage point since July”

The 10-year Treasury yield jumped to 2.36% in late trading on Friday, the highest since December 2015, up 66 basis point since the election, and up one full percentage point since July!

The 10-year yield is at a critical juncture. In terms of reality, the first thing that might happen is a rate increase by the Fed in December, after a year of flip-flopping. A slew of post-election pronouncements by Fed heads – including Yellen’s “relatively soon” – have pushed the odds of a rate hike to 98%.

As I noted the other day, so many things in our financial system are tied to yields on U.S. Treasury notes.  Just look at what is happening to mortgages.  As Wolf Richter has noted, the average rate on 30 year mortgages is shooting into the stratosphere…

The carnage in bonds has consequences. The average interest rate of the a conforming 30-year fixed mortgage as of Friday was quoted at 4.125% for top credit scores. That’s up about 0.5 percentage point from just before the election, according to Mortgage News Daily. It put the month “on a short list of 4 worst months in more than a decade.”

If mortgage rates continue to shoot higher, there will be another housing crash.

Rates on auto loans, credit cards and student loans will also be affected.  Throughout our economic system it will become much more costly to borrow money, and that will inevitably slow the overall economy down.

Why bond investors are so on edge these days is because of statements such as this one from Steve Bannon

In a nascent administration that seems, at best, random in its beliefs, Bannon can seem to be not just a focused voice, but almost a messianic one:

“Like [Andrew] Jackson’s populism, we’re going to build an entirely new political movement,” he says. “It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Ship yards, iron works, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution — conservatives, plus populists, in an economic nationalist movement.”

Steve Bannon is going to be one of the most influential voices in the new Trump administration, and he is absolutely determined to get this “trillion dollar infrastructure plan” through Congress.

And that is going to mean a lot more borrowing and a lot more spending for a government that is already on pace to add 2.4 trillion dollars to the national debt this fiscal year.

Sadly, all of this comes at a time when the U.S. economy is already starting to show significant signs of slowing down.  It is being projected that we will see a sixth straight decline in year-over-year earnings for the S&P 500, and industrial production has now contracted for 14 months in a row.

The truth is that the economy has been barely treading water for quite some time now, and it isn’t going to take much to push us over the edge.  The following comes from Lance Roberts

With an economy running at below 2%, consumers already heavily indebted, wage growth weak for the bulk of American’s, there is not a lot of wiggle room for policy mistakes.

Combine weak economics with higher interest rates, which negatively impacts consumption, and a stronger dollar, which weighs on exports, and you have a real potential of a recession occurring sooner rather than later.

Yes, the stock market soared immediately following Trump’s election, but it wasn’t because economic conditions actually improved.

If you look at history, a stock market crash almost always follows a major bond crash.  So if bond prices keep declining rapidly that is going to be a very ominous sign for stock traders.

And history has also shown us that no bull market can survive a major recession.  If the economy suffers a major downturn early in the Trump administration, it is inevitable that stock prices will follow.

The waning days of the Obama administration have set us up perfectly for higher interest rates, a major recession and a giant stock market crash.

Of course any problems that occur after January 20th, 2017 will be blamed on Trump, but the truth is that Obama will be far more responsible for what happens than Trump will be.

Right now so many people have been lulled into a sense of complacency because Donald Trump won the election.

That is an enormous mistake.

A shaking has already begun in the financial world, and this shaking could easily become an avalanche.

Now is not a time to party.  Rather, it is time to batten down the hatches and to prepare for very rough seas ahead.

All of the things that so many experts warned were coming may have been delayed slightly, but without a doubt they are still on the way.

So get prepared while you still can, because time is running out.

Read more at: theeconomiccollapseblog.com

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Stock market FRAUD exposed: 93% of market moves since 2008 have been driven entirely by the Fed, not the free market /marketcrashnews/2016-03-17-stock-market-fraud-exposed-93-of-market-moves-since-2008-have-been-driven-entirely-by-the-fed-not-the-free-market.htmlv Thu, 17 Mar 2016 14:22:26 +0000 http://162.244.66.231/marketcrashnews/2016-03-17-stock-market-fraud-exposed-93-of-market-moves-since-2008-have-been-driven-entirely-by-the-fed-not-the-free-market The bull market just celebrated its seventh anniversary. But the gains in recent years – as well as its recent sputter – may be explained by just one thing: monetary policy.

(Article by Lawrence Lewitinn, republished from http://finance.yahoo.com/news/the-fed-caused-93–of-the-entire-stock-market-s-move-since-2008–analysis-194426366.html)

The factors behind that and previous bubbles can be illuminated using simple visual analysis of a chart.

The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s “quantitative easing” asset purchasing program. After three rounds of “QE,” where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion.

This isn’t just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. What’s more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.

Barnier first compiled data on the total value of publicly-traded U.S. stocks since 1950. He then divided it by another economic factor, graphing the ratio for each one. If the chart showed horizontal lines stretching over long periods of time, that meant both the numerator (stock values) and the denominator (the other factor) were moving at the same rate.

“That’s the beauty of the visual analysis,” he said. “All we have to do is find straight, stable lines and we know we’ve got something good.”

.

Scouring hundreds of different factors, Barnier ultimately whittled it down to just four factors: GDP data five years into the future, household and nonprofit liabilities, open market paper, and the Fed’s assets. At different stretches of time, just one of those was the single biggest driver of the market and was confirmed with regression analyses.

.

He isolated each factor in a separate chart, calling them “eras” for the stock market.

  1. From after World War II until the mid-1970s, future GDP outlook explained 90% of the stock market’s move, according to statistical analysis by Barnier.
  2. GDP growth lost its sway on the market in the early 1970s with the rise of credit cards and consumer debt. Household liabilities grew with plastic first, followed by home mortgages, until the real estate crash of the early 1990s. Barnier’s analysis shows debt explained 95% of the entire market’s move during this time.
  3. The period between the mid- to late-1990s until 2000 was, of course, marked by the tech bubble. While stocks took much of the headline, that time also saw heightened activity in thecommercial paper market. Startups and young companies sought cash beyond their stratospheric share values to fund their operations. Barnier’s regression analysis shows commercial paper increases could explain as much as 97% of the tech bubble.
  4. Shortly after the tech bubble burst, a housing bubble began, once more in the form ofmortgages and other debt. That drove 94% of the market’s move for the first several years of the current century.
  5. As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. During the first half of 2013, the Fed caused the entire market’s growth, he said.

Since the Fed stopped buying bonds in late 2014, the S&P 500 has been batted around in a 16% range and is more or less where it was when the QE came to a close. Investors need to anticipate the next driver, said Barnier.

“Quantitative easing has stopped, but now we’re into the interest rate world,” he said. “That means for any investor trying to figure out what to do, step one is starting with a macro strategy.”

Read more at: http://finance.yahoo.com/news/the-fed-caused-93–of-the-entire-stock-market-s-move-since-2008–analysis-194426366.html

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You still aren’t grasping the systemic risk in the stock market /marketcrashnews/2016-01-21-you-still-arent-grasping-the-systemic-risk-in-the-stock-market.htmlv Thu, 21 Jan 2016 17:52:59 +0000 http://162.244.66.231/marketcrashnews/2016-01-21-you-still-arent-grasping-the-systemic-risk-in-the-stock-market If you still own stocks and mutual fund shares, you still aren’t grasping the systemic risk in the stock market, says Mike Adams.

The massive market bubble currently in place has been propped up by a steady stream of fiat money being printed by the Federal Reserve and handed out to banksters who have ties to Washington. This, combined with near-zero interest rates, is the only thing propping up the bubble market.

High-tech companies are back into bubble territory with unrealistic valuations based on hype and vapor. Meanwhile, the corrupt mainstream media continues to lie to the sucker public, telling them the market can only go UP… even as it careens on the verge of systemic collapse.

The systemic nature of the global banking system and its insane derivatives debt means the next collapse will be a SYSTEMIC firestorm that’s unstoppable and absolutely devastating. Pensions, bank accounts, investment funds, bonds and much more will be nearly wiped out, and the corrupt, criminal government regime will make sure everyday Americans are the ultimate losers when the dust settles.

Catch Mike Adams’ podcasts at HealthRangerReport.com, and visit Collapse.news and NewsTarget.com for frequent updates on the coming global debt collapse.

For more information, be sure to check out HealthRangerReport.com.

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