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Old 10-14-2018, 04:11 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,799
How much pain will Powell allow?

You can bet that Armstrong considers the recent drop to be just a minor correction. Chris Martenson has another view.
"The central banks have distorted the processes of price discovery and market structure for so many years now, that it’s difficult to know yet whether their grip on the markets has indeed failed.
But what we know for certain is that bubbles always burst. Inevitably."
"And with that, our award for “Finally closing the barn door after the horse left 8 years ago,” goes to John Williams of the US Federal Reserve.

In my assessment, the biggest crime of the Fed was the decision under Greenspan to try to eliminate the business cycle by replacing it with a credit cycle. Here’s what that looks like in chart form:"
EXCELLENT chart, http://media.peakprosperity.com/images/Hussman-

But what we know for certain is that bubbles always burst. Inevitably. Each is built upon a fallacy; and when that finally becomes apparent to enough people, the mania ends.

And with that, our award for “Finally closing the barn door after the horse left 8 years ago,” goes to John Williams of the US Federal Reserve.
Heck, Trump was already gunning for Powell on Wednesday after just the first -3% decline:"
But if Trump was concerned on Wednesday, he must have been spitting nails on Thursday as the market carnage continued:"
Another amazing chart, http://media.peakprosperity.com/imag...2018-10-12.jpg

"It’s not a perfect detection mechanism certainly (Germany is down 4x more than Portugal?) but the pattern is more than directionally adequate. The money flood has reversed"
Stop and give this some thought. Germany is down 4X the drop of Portugal. Germany was WAY up. Portugal was not.
Now, think about gold. It hasn't gone way up because the CBs blocked it from every approach. The dollar will continue to rise (Armstrong) until it crashes in 2020? He also said that gold would see a catapult move. Don't throw your gold away.

https://www.peakprosperity.com/blog/...inally-arrived
"Whether the central banks blink here and ride to the rescue is the big question."
"the consensus is that Powell is a different animal from his predecessors. He'll tolerate quite a lot of stock weakness before he's moved to act. Is his line in the sand -20%? -30%? "
So, just how much will Trump be screaming at Powell?

"October 12 - Bloomberg (Cecile Gutscher): "Nervous money managers fled from corporate bonds like never before in an exodus that outpaced stocks. Record outflows hit funds that buy investment-grade debt…, according to Bank of America Corp. strategists citing EPFR Global data. The redemptions totaled $7.5 billion in the week through Oct. 10. By comparison, investors pulled $1.4 billion from equity portfolios during the period,"
https://creditbubblebulletin.blogspo...ng-coming.html
RUN TO CASH.

"A recent report showed that investors have the LEAST amount of cash in their investment accounts…EVER."
WAIT, what about possible margin calls?
” From the Federal Reserve’s Z.1 release, we find that U.S. Households had a reported 34.3% of their financial assets invested in the equity market as of the 2nd quarter. Outside of a slightly higher reading in the 4th quarter of 2017, that is the highest level of stock investment in the 70-plus year history of the series, other than the 1999-2000 bubble top.”
YES and when the bubble pops, they won't have a red cent to meet margin calls or even,,,, pay their bills.
https://realinvestmentadvice.com/wee...-all-in-again/

10/13 40% of the American middle class face poverty in retirement, study concludes – CNBC What will it be after the markets and pension funds crash?
10/13 Chinese car sales suffer record drop, set for historic collapse – ZH
Blame it on their ADD
10/13 Cryptocurrencies continue plunge with another $6 billion wiped out in a day – CNBC
10/13 Bitcoin is the ‘mother of all scams’, Roubini tells Congress – CNBC
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