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The Bursting of the Bond Bubble Has Begun Pt 2

As we wrote earlier this week, bursting of the bond bubble has begun. The decision by Central Banks to “inflate” the system’s debts away post-2008 has resulted in the misallocation of trillions of Dollars of capital. The worst offenders were Chinese corporates. China has created the single largest mountain of

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The Bond Bubble Has Begun Bursting

The bursting of the bond bubble has begun. As I’ve outlined previously the primary concern for Central Banks is the bond bubble. CNBC and other financial media focus on stocks because the asset class is more volatile and so makes for better content, but the foundation of the financial system

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The Fed Continues Giving Money to Wall Street Even Without QE

Stocks will likely rally this week for the simple reason that it is options expiration week.   The Fed almost always gives Wall Street extra money to play around with during options expiration.   On average the Fed expands its balance sheet by $9.1 billion during options expiration weeks (expansions

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Are Stocks About to Crash?

The stocks futures markets are off the lows from last week as traders are playing for the usual Monday rally. However, the fact remains that the technical damage from last week’s breakdown has been SEVERE. Stocks even violated the “neckline” on the Head and Shoulders pattern they’ve carved out since

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Stocks Are in BIG Trouble

Stocks are rallying into the open. However, the technical damage of the last week has been severe. The S&P 500 crashed through its trendline (blue line). It also crashed through critical support established by the bounces in September and October (green line). We might get a bounce here to retest

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The Bull Market is Very Likely Over

Dear Investor, Stocks are crashing before the market’s open. As I warned earlier this week… it’s very likely that the Bull Market in stocks is over. Indeed, the breakdown is actually MUCH bigger than most investors realize. We’ve actually broken THE bull market line that goes all the way back

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Market Warning: the FANGs Are Beginning to Break Down…

The FANGs are beginning to break down. FANG is an acronym that stands for Facebook, Amazon, Netflix, Google. These are four of the top performing stocks of 2015. Netflix was the top stock for the S&P 500 returning 134% in 2015. Amazon was #2, returning 118%. Google returned 44% and

THREE Reasons Stocks Will Crater in 2016

Happy New Year! Last year (2015) likely will represent the top for the bull market that began in 2009. Stocks finished the year down, representing the first down year since the March 2009 bottom. Many analysts will point to the August sell-off as the reason stocks performed so badly, however,

Will 2016 Bring Another 2008-Type Crash? Pt. 1

The world is lurching towards another Crash. Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes after the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013. This program

The Fed’s Academic-Based Theories Are Creating a BRUTAL Economic Reality

One of the most frustrating aspects of today’s financial system is the fact that the Fed is being lead by lifelong academics with no real world banking or business experience. Consider the cases of Ben Bernanke and Janet Yellen. Neither of these individuals has ever created a job based on

Deflation is Back… Will It Lead to Another Crash?

Central Bankers are flummoxed. Having cut interest rates over 600 times since 2009 (and printed over $15 trillion), they’ve yet to generate the expected economic growth. Despite these failures, the ECB, and the Bank of Japan are currently engaging massive QE programs. The Fed is the only major Central Bank

Take Note: Globally Bull Markets Are Ending

Central Banks are beginning to lose control. Indeed, despite recent promises to do more by the Bank of Japan, the Nikkei is rapidly losing momentum. In Europe, the situation is worse. There the ECB has already cut interest rates to negative THREE times, launched QE and already extended said QE.

The Fed Rate Hike Will Trigger a $9 Trillion Meltdown

Yesterday, the Fed has hiked interest rates from 0.25% to 0.5%. It is the first rate hike in 10 years. And it is now clear that the Fed is not only behind the ball in terms of raising rates… but that it has now primed the financial system for another

Stocks Could HALVE Based on the True State of the Economy

Since 2009, the global markets have been largely steered by Central Bank policy, NOT organic economic growth. With the debt-based monetary system dangerously close to shutting down during the 2008 meltdown, Central Banks stepped in as the “buyers of last resort” to provide a backstop to the system. The problem

The Fuse on the Global Debt Bomb Has Just Been Lit

The global bond bubble has begun bursting. This process will not be fast by any means. Central Banks and the political elite will fight tooth and nail to maintain the status quo, even if this means breaking the law (freezing bank accounts or funds to stop withdrawals) or closing down

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