Bankers Decry: "Keep Calm and Sell Everything!"

Here it comes!  The financial disaster that market watchers have warned us about for the past 5 years is fast approaching, 2016 could be a rock and roll year.

RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.

The bank’s credit team said markets are flashing stress alerts akin to the turbulent months before the Lehman crisis in 2008. “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” it said in a client note.

Andrew Roberts, the bank’s research chief for European economics and rates, said that global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings. This is particularly ominous given that global debt ratios have reached record highs.

All eyes are on China. 

Source:

http://www.telegraph.co.uk/finance/economics/12093807/RBS-cries-sell-everything-as-deflationary-crisis-nears.html

Catastrophic Market Correction Predicted in Fall 2015

Market watchers are jittery.  All indicators are portending a monumental meltdown that could possibly begin in September or October.  Here is an excerpt from The Economic Collapse:

What I am about to share with you is quite stunning.  A well-respected financial expert that correctly predicted the last two stock market crashes is now warning that we are right on the verge of the next one.  John Hussman is a former professor of economics and international finance at the University of Michigan, and the information in his latest weekly market comment is staggering.  Since 1970, there have only been a handful of times when a combination of market signals that Hussman uses have indicated that a major market peak has been reached.  In 1972, 2000 and 2007 each of those peaks was followed by a dramatic stock market crash.  Now, for the first time since the last financial crisis, all four of those signals appeared once again during the week of July 17th.  If Hussman’s analysis is correct, this could very well mean that the next great stock market crash in the United States is imminent.

What could that ultimately mean?  Here is a disturbing prediction:

 The answer to this could end up being worth at least $2.2 trillion, which is how much money would essentially be wiped out of the stock market if we finally get the much-discussed 10% correction in the overall market (the total U.S. stock market capitalization was $22.5 trillion as of June 30, according to the Center for Research in Security Prices).

Wow.

Obama the Anti-E.F. Hutton of Market Relevance

Charles Krauthammer nails it again. When Obama speaks no one listens. He is the anti-E.F. Hutton of market relevance; except of course for the czars who’re regulating American businesses into extinction.