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Market Talk – September 2nd, 2015
All systems tend to collapse in ten 8.6-year waves, and the last 4.3 years are typically the worst. That is what we should see between 2015.75 and 2020.05. By comparison, the Roman Emperor Valerian I was ...
(Image: Don McCullough)
There Will Be No 25-Year Depression
Today, we have bad news and good news. The good news is that there will be no 25-year recession. Nor will there be a depression that will last the rest of our lifetimes.
The bad news: It will be much worse than that.
Major U.S. Retailers Are Closing More Than 6,000 Stores
If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores? The “retail apocalypse” that I have written about so frequently appears to be accelerating. As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable. So if this is happening already, what are things going to look like once the next recession strikes? [image credit : Marlus Watz]
Did A Tap On The Shoulder "Prevent" The US Economy From Sliding Into Recession?
This leaves us with this chart as the plainest indication yet of the smoke and mirrors bullshit being pulled on every gullible non-skeptical American about the state of their nation.
We Just Broke 2008′s Record for the Fastest Economic Unraveling!
In my last piece I provided a technical analysis that signaled we are entering the first stage of a bursting bubble that we’ll call the Fed Bubble. ...
But probably the most disheartening aspect of the coming reset is that almost every retiree or soon to be retired household has just about 100% of their nest egg currently in equities.
Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse. Typically, governments exacerbate the situation by printing large amounts of currency notes in an effort to inflate the problem away, or at least postpone it. ... And that’s what most governments do, but here’s where that idea usually falls down: First, the “black-market” currency is so desired by the now-jaded citizens that they do all they can to avoid the new official currency. Soon, most transactions, although illegal, are undertaken in the black-market currency. Second, since no one really wants the new currency, even the political leaders are soon using the black-market currency.
“If you’re committed enough, you can make any story work. I once told a woman I was Kevin Costner, and it worked because I believed it.” – Saul Goodman – Breaking Bad “As calamitous as the sub-prime blowup seems, it is only the beginning. The credit bubble spawned abuses throughout the system. Sub-prime lending just happened to be the most egregious of the lot, and thus the first to have the cockroaches scurrying out in plain view. The housing market will collapse. New-home construction will collapse. Consumer pocketbooks will be pinched. The consumer spending binge will be over. The U.S. economy will enter a recession.” – Eric Sprott : 2007 In Part One of this article I provided the background of how our current debt saturated economy got to this point of ludicrousness. The “crazy” bloggers, prophets of doom, and analysts who could do basic math were warning of an impending financial crisis in 2006 and 2007, which would be caused by the issuance of hundreds of billions in subprime slime by the Too Big To Trust Wall Street shysters. Subprime mortgages, auto loans, and credit card lines provided the kindling for the 2008 conflagration.
... The Fed report downplayed the 13% surge in seriously delinquent auto loans in one quarter, from 3.1% to 3.5%. This is just the seriously delinquent loans and amounts to $33 billion. ... In a scathing recent report, The Center for Responsible Lending dismantles the positive storyline being spun by the purveyors of propaganda at the Fed and their Wall Street owner peddlers of debt. ... The Federal Reserve used to report on a monthly basis regarding the average LTV, maturity, and average amount financed for all car loans. They abruptly stopped reporting this info as of 2012, just as the subprime auto boom launched. They have provided no rational for stopping this reporting. The data is readily available and the Center for Responsible Lending details the data in their report. It’s clear why the Fed doesn’t want to provide the data – because it proves how outrageously reckless the banks have become under the Fed’s regulatory reign of nonchalance. ... In Part Three of this article I’ll address the student loan debacle and the coming worldwide debt implosion which will change the world forever.
Marc Faber Is Back: "It Will End Badly... We're In A Worse Position Than 2008"
"It will end badly," Marc Faber explains in this brief CNBC clip, "the question is whether we will have a minor economic crisis and then huge money printing or get into an inflationary spiral first."
If you thought that "we had a credit crisis in 2008 because we had too much credit in the economy," then Faber notes "there is that much more credit as a percent of the economy now."
Of course, as Bill Fleckenstein recently noted, as long as stocks are rising, investors remain blinded by the exuberance, but as Faber concludes, "we are in a worse position than we were back then," and inflation is already here.
"It's Gonna End One Day... Through War Or Financial Collapse"
Marc Faber on shadow banking, market psychology, & the global impact of American monetary policy.
Marc Faber is an economic authority on global macroeconomics, capital markets, and investment and the Editor & Publisher of "The Gloom Boom & Doom Report". He spoke with The Prospect Group about easy monetary policy and credit growth, asset price volatility, and the Fed. Copyright 2013 - The Prospect Group
