Fed’s warning
By Daniel at 8 January, 2010, 12:09 am
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Topic Asian shares higher, in accordance with market watch guidelines, in context to global equity markets and some highly relevant considerations.
Denninger on his latest Market Ticket website blog makes the strongest statement yet that markets have now reached the top of the bubble on a global scale and is warning anyone of the possible consequences. He refers to one of the bond investors, with one of the highest track records at moving ahead of sharp market movements, Pimco.
He also refers to a statement from the Fed issued today to banks, making a very clear warning for them to be prepared for at any time, higher interest rates and complete withdrawal of support. This is as sovereign debts reach beyond the limit of the ability of tax payers to pay back debts built up over the last year and half to bailout the banksters and pump up the markets in order to give the banksters a chance to make a quick exit, before the real global stock market crash.
According to Bill Gross, the Federal Reserve is the largest buyer, by far, of US Treasuries. At the same time, the Federal Reserve is the only buyer of mortgage-backed securities. It is flooding the banks and non-banks with free cash, while it floods the mortgage market and the government with funding to continue the spending spree. The inflationary determination of Bernanke’s Fed is huge and by and large secretive. Scares the heck out of me and it makes it difficult to understand how anybody can make market forecasts when the dominant force affecting all markets is not market-based.
If things don’t work out as planned or maybe even according to plan, Main Street gets the real hit but all least Wall Street and the banksters were saved to make a getaway with the loot, but Main Street will have to pay back all moneys given out, bailed out and bonuses paid from, with a Second Great Depression:
http://market-ticker.org/archives/1826-Here-It-Comes-You-Were-Just-Warned-Folks.html
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