Tuesday, August 18, 2015

Our Warped, Debt saturated,Over-Valued, Federal Reserve Rigged Financial Markets Are Going To Collapse......

Our Warped, Debt saturated,Over-Valued, Federal Reserve Rigged, Financial Markets Are Going To Collapse.

The Only Questions Are When And What Will The Catalyst / Catalysts Be?

"The way to wealth in a bull market is debt. The way to oblivion in a bear market is also debt, and nobody rings a bell." 

                   James Grant

Leveraging yourself to the hilt and piling into the stock market has been the road to riches for six years, just as leveraging to the hilt in real estate was the road to riches from 2002 through 2007, and leveraging to the hilt in internet stocks was the road to riches from 1998 through 2000. Of course, the dot.com and housing road to riches detoured into ditches that wiped out trillions of phantom wealth, just as the current road is leading to a grand canyon size ditch.

Total credit market debt has reached all-time highs.

Total credit market debt sits at $59 trillion, up from $52 trillion in 2009 at the depths of the recession. This increase has been entirely driven by a $5.3 trillion increase in government debt and a $1.6 trillion increase in corporate debt. The propaganda about corporations flush with cash is bold faced lie. Corporations have increased their debt load by 25% since 2009.

The current overvalued market conditions have only been present 8% of the time over the last century. Market crashes have only occurred when the current conditions existed in the past. The ghosts of 1929, 2000 and 2007 are warning you to beware. Ignore the warnings at your own peril.

If you believe all the hype and bullshit stock prices apparently rise on nothing but continued failure and endless harmful financial engineering, something that we have never seen before and in a right thinking world would be deemed very dangerous. "Stimulus" is just noise at best; at worst it actively contributes to the instability of the decline. There is a great difference between an artificial, financial economy and a real one, we will soon have very painful evidence of this fact!

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