From the Roaring Twenties to the Modern Financial Panic – ‘Bubbles Forever’, ‘Crashes Forever’ … More Frequent, Bigger, Costlier, Deadlier… SOMETHING WORSE THAN GREAT DEPRESSION COMING!
PAUL CRAIG ROBERTS: U.S. A LAWLESS STATE, SOMETHING WORSE THAN GREAT DEPRESSION COMING!
Former Assistant Treasury Secretary Paul Craig Roberts says, “The country is not being run by the President. It is being run by spy agencies and private interest groups, Wall Street and military security complex . . .They run the country. The President is a puppet, a figurehead.” Dr. Roberts contends, “If you are a lawless state, which the United States is, it obeys no international law. It does not obey the Geneva Convention . . . It tortures people. It doesn’t obey the Constitution. It doesn’t obey anything. It does what it wants. . . . If you are a lawless state, you disguise yourself as a democracy.” Former President Jimmy Carter agrees. Just last week, Carter said, “The U.S. has no functioning democracy at this moment.” Why hasn’t the mainstream media picked up this astounding comment from a former Democratic President? Dr. Roberts says, “Five firms now own what used to be a large dispersed independent media. Nobody can open their mouth, they’d get fired. They have become a propaganda ministry for government and corporations.” Dr. Roberts goes on to say, “My prediction or expectation is by winter, the second downturn of the Great Recession will be in place. Unemployment will explode, more foreclosures are coming. It’s going to be worse than the Great Depression.” Join Greg Hunter as he goes One-on-One with economist Dr. Paul Craig Roberts.
$1,200 Trillion Derivatives Market Dwarfs World GDP
$1,200 Trillion Derivatives Market Dwarfs World GDP
John Rolls Submits: The Derivatives market was only 500 trillion in 2008 when it almost blew up in all our faces. Now it is 3 times that size, what a monster balloon! when it blows no one survives that has money in the banks or in the mattress. You better start investing in silver and gold which is real money not fiat. Financial hell is coming if you put your faith in the banks! .Yes it’s about capitalism but notice he also uses the politically incorrect word MORAL, no system of any type is worth using without basic ethical and moral principles as the basis of it. Needless to say, GREED runs this system and has for quite a while and unless and until honor and virtue replace it…the system will continue to increase unpayable debt and bring the economic system to a tragic and very messy ruin.
‘Bubbles Forever’ and stock crashes forever too
Shiller captured the insanity of the dot-com 1990s in his best-seller, “Irrational Exuberance.” Now, his “Bubbles Forever” warns that “irrational exuberance” is back, as we dump bonds, chase yields, searching.
‘Bubbles Forever’: irrational exuberance wants a ‘new, new normal’
Yes, bubbles are forever, bouncing around our brains. Until the next crash. Then, denial, our brain hibernates … erasing the pain, losses … memory’s suppressed … the next bubble mania heats up … like now, a new virus spreads, metastasizing … feasting on bullish market news, short-term profits … a new addiction, disease, virus takes over the brain … exploding into a neurological social-media experience … consuming America’s collective brain … slowly climbing a new wall of worry … building to a new critical mass, a new flash point, then ignition.
The ‘90s dot-com mania was irrational exuberance run amok. American investors created a grand collective delusion of a perpetual New Economy, a new reality where it seemed reasonable for 19 high-tech funds to return 100% to 365% in 1999, where your barber’s stock tips seemed reasonable, where the neighborhood barbecue was where we shared our reasonable plans to retire millionaires soon, in the New Millennium.
‘Crashes Forever’ too … more frequent, bigger, costlier, deadlier
But their “forever bubble” exploded fast in the New Millennium. Shocked Americans settled into a painful 30-month recession as Wall Street lost $8 trillion market cap of Main Street’s retirement nest eggs. That same scenario repeated again in the bank credit meltdown of 2007-2009. And today we’re moving headlong into the third shocker of the 21st century. Oblivious that history is repeating, lessons not learned, no wonder we’re baffled.
As with “Irrational Exuberance,” Shiller’s “Bubbles Forever” looks beyond our 24/7 short-term mental trap. He was in Colombia, South America, recently: “People there told me about an ongoing real-estate bubble … Colombia’s central bank maintains a home-price index for three main cities — Bogotá, Medellín, and Cali. The index has risen 69% in real (inflation-adjusted) terms since 2004, with most of the increase coming after 2007.”
That growth rate reminded him of America’s accelerating growth a few years earlier when the S&P/Case-Shiller Ten-City Home Price Index shot up 131% from a 1997 bottom to its peak in 2006, before the bottom collapsed. It’s repeating across the world.
‘Biggest bubble in history’ was visible years before 2008 meltdown
The warning signs began years earlier in our rally leading up to a 2008 crash. Investors slowly climbed the wall of worry as media and market bulls cheered every new record. The warnings were everywhere. But the bulls snorted louder. And our minds were obviously more receptive to the bulls.
Who Controls The Global Economy? Do Not Underestimate The Power Of The Big Banks
Are the big banks really as powerful as some people say that they are? Do they really control the global economy? If y0u asked most people, they would tell you that governments control the global economy. But the campaigns of our politicians are funded by the ultra-wealthy, the big banks and the large corporations that they control. Others would tell you that the Federal Reserve and the rest of the central banks around the world control the global economy. But the truth is that the Federal Reserve was established by the bankers and for the benefit of the bankers. As you will see below, at the very core of the global economy there exists a “super-entity” of financial institutions that control an almost unimaginable amount of wealth and power. These financial institutions and the ultra-wealthy individuals behind them are really the ones that are pulling all the strings. In this world money equals power, and the borrower is the servant of the lender. When you follow the pyramid all the way to the top, it begins to become very clear who really is in control.
In business schools all over America today, instead of dreaming of starting new businesses and contributing something positive to society, most business students are dreaming of going to Wall Street and getting rich. But Wall Street doesn’t actually create or build anything of value for society. Instead, the bankers make most of their profits by essentially pushing money and paper around. In a recent article, Chris Martensoncommented on this…
Today, some of the most celebrated individuals and institutions are ensconced within the financial industry; in banks, hedge funds, and private equity firms. Which is odd because none of these firms or individuals actually make anything, which society might point to as additive to our living standards. Instead, these financial magicians harvest value from the rest of society that has to work hard to produce real things of real value.
While the work they do is quite sophisticated and takes a lot of skill, very few of these firms direct capital to new efforts, new products, and new innovations. Instead they either trade in the secondary markets for equities, bonds, derivatives, and the like, which perform the ‘service’ of moving paper from one location to another while generating ‘profits.’ Or, in the case of banks, they create money out of thin air and lend it out – at interest of course.
Liquidity Update: Record High Deposits, Fed Reserves And Foreign Bank Cash; Fed Owns 31% Of Treasury Market
It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today
#1 According to the Bank of America Merrill Lynch equity strategy team, their big institutional clients are selling stock at a rate not seen “since 2008“.
#2 In 2008, stock prices had wildly diverged from where the economic fundamentals said that they should be. Now it has happened again.
#3 In early 2008, the average price of a gallon of gasoline rose substantially. It is starting to happen again. And remember, whenever the average price of a gallon of gasoline in the U.S. has risen above $3.80 during the past three years, a stock market decline has always followed.
#4 New home prices just experienced their largest two month dropsince Lehman Brothers collapsed.
#5 During the last financial crisis, the mortgage delinquency rate rose dramatically. It is starting to happen again.
#6 Prior to the financial crisis of 2008, there was a spike in the number of adjustable rate mortgages. It is happening again.
#7 Just before the last financial crisis, unemployment claims started skyrocketing. Well, initial claims for unemployment benefits are rising again. Once we hit the 400,000 level, we will officially be in the danger zone.
#8 Continuing claims for unemployment benefits just spiked to the highest level since early 2009.
#9 The yield on 10 year Treasuries is now up to 2.60 percent. We also saw the yield on 10 year U.S. Treasuries rise significantly during the first half of 2008.
#10 According to Zero Hedge, “whenever the annual change in core capex, also known as Non-Defense Capital Goods excluding Aircraft shipments goes negative, the US has traditionally entered a recession”. Guess what? It is rapidly heading toward negative territory again.
#11 Average hourly compensation in the United States experienced itslargest drop since 2009 during the first quarter of 2013.
#12 In the month of June, spending at restaurants fell by the most that we have seen since February 2008.
#13 Just before the last financial crisis, corporate earnings were very disappointing. Now it is happening again.
#15 During 2008, the price of gold fell substantially. Now it is happening again.
#16 Global business confidence is now the lowest that it has been since the last recession.
#17 Back in 2008, the U.S. national debt was rapidly rising to unsustainable levels. We are in much, much worse shape today.
#18 Prior to the last financial crisis, Federal Reserve Chairman Ben Bernanke assured the American people that home prices would not decline and that there would not be a recession. We all know what happened. Now he is once again promising that everything is going to be just fine.