Saturday, June 18, 2016

"We are heading for a crisis that will be exponentially worse than 2008"

"...The global Central Banks have literally bet the financial system that their theories will work.  They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.

Bankrupt via hyperinflation like Venezuela is currently experiencing
which is spreading through South America,
soon to affect Africa and other emerging, relatively poor economies etc... 
while the US dollar rises from flight to 'quality',
being the world's reserve currency and greatest military power

Or bankrupt like Puerto Rico or Greece
who can't print money to default

...We may have reached the point at which the Fed has lost all credibility.

...the Fed failed to raise rates… again.

It’s pretty incredible if you step back and think about it. Here were are, seven years into a supposed recovery, and the Fed’s actions tell us the economy cannot handle rates higher than 0.25%.

Rates of 0.25% and the word “recovery” do not belong together. The Fed is currently maintaining rates at levels usually reserved for dealing with Crises, NOT recoveries...

The markets are in a massive bubble. The S&P 500 is sporting an EV/EBITDA of over 10. There is simply no way on earth this is not a bubble. Indeed, this reading is even higher than the S&P 500’s EV/EBITDA in 2007: a period that everyone agrees was a bubble.

Earnings are at levels not seen since 2012. Meanwhile stocks are 70% higher than they were during that time."


The world's central banks have artificially stabilized
to the point of creating more instability ever seen