Posted on 08/21/2015 9:42:30 PM PDT by kathsua
I can’t shake a lingering suspicion that the crash was timed for political proposes. That is was initiated by someone with a great deal of money, and considerable know-how — who found just the right block to pull out to make the entire structure of the markets to collapse.
As to timing, there was some speculation pertaining to China having a two year period to seize control of the South China Sea, before economic turmoil would erupt worldwide- now seen as apparently wrong.
Studys based upon “long-wave economic trends” have been marking time since 2000, a significant inflection turning point, for a “downturn”. The politically initiated Fed QE injections post 2008 countered the natural de-leveraging that would have occurred, in a series of milder drops. Fifteen trillion $ used propping up bad debt.
http://www.economicnoise.com/2015/08/11/only-the-date-is-unknown/
The market is much too big for that. The market had peaked at least a year earlier and was hanging in space like Wily Coyote awaiting gravity to do its job. In the background toxic mortgages written during the bubble were already defaulting and the realization began to set in that a whole lot of investment firms owned time bombs instead of assets. The amount of derivatives pyramided on top of risky mortgages was in the trillions. A few firms had positioned themselves to profit when the bubble collapsed. A much larger number appear to have had no idea that they were at risk. The crash was the product of magical thinking and stupidity on the part of alleged financial wizards who should have known better. MBAs turned out to be as vulnerable to Extraordinary Popular Delusions and the Madness of Crowds as the strawberry pickers they were extending mortgages to.
Democrats kept bad mouthing the economy until they got the results they could use to blame the Republicans.
Exactly, what Ron Paul is doing in his ad is make it sound like the inevitable downslide of the market roller coaster will be a major disaster. I believe in the late Paul Harvey’s philosophy that the only losers in such situations are the ones who panic and sell out. The ones who hang on to their investments will come out all right when the market comes back up
I am not sure you understand the problem.
Saudi knows how levered up the Fracking industry is in order to undertake operations.
http://www.zerohedge.com/news/2015-08-27/scariest-number-oil-industry-550-billion
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