It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations. Photo: Reuters
Posted on 08/16/2015 5:01:08 PM PDT by Perseverando
It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations. Photo: Reuters
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse.
1 - China slowdown
China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets.
The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker.
(Excerpt) Read more at telegraph.co.uk ...
The economy is doing fine. Just ask some of the government employees here.
“Printing” money has saved the “global markets” so far, what’s to stop them now? What’s a little inflation amongst friends?
If China ain’t happy. Ain’t nobody gonna be happy.
The Shemitah is about ready to HIT THE FAN (shtf Moment).
Freegards
LEX
He makes it sound very convincing to expect something big by the end of September. This could be catastrophic financial collapse, social disintegration, wars, and/or physical calamities.
He suggests that America is due for Judgment and will be taken down. The US got a warning on 9/11 but responded with pride, arrogance and sinfulness.
Can only build so many ghost cities.
WTI crude went under $42 a little bit ago. Things are probably going to get very interesting soon. Stock up on popcorn. ;-)
Well with 0bama’s green energy plan we should do just fine.
Rollover to account 21214
Thee doesn’t seem to be any concern among the stock market participants and analysts.
Or are they part of the conspiracy?
Is the sultan along with Congress going to “pump” say 10 trillion digital dollars into the economy this time?
Should I move my 401K money to the Stable Funds?
The Shemitah is about ready to HIT THE FAN
I agree.
The Iran nuclear deal will insure it.
I know.
We are coming under Judgment.
And the Iran nuclear deal will insure it.
I live near DC. The government is doing very, very well indeed.
I call it a “prosperity pocket”
It ain’t over ‘til the breweries go bust.
Thee doesn’t seem to be any concern among the stock market participants and analysts.
Or are they part of the conspiracy?
They’re buying their own BS, IMHO. Most of them will be caught completely by surprise when it happens, just like 7 years ago. Check out Peter Schiff if you get a chance. He’s got an interesting perspective on markets, and rightly points out how often the market gets it wrong.
Most of the money managers and pundits are short to medium term traders who think that their charts, etc. are king. They’re pretty good at making money most of the time, but don’t really understand economics. They think that markets somehow exist independently from the economy in general. It may appear at times, that they do, but eventually economic realities catch up with the market.
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