We Return You Now To Your Regularly Scheduled Financial Apocalypse

Just a hint of tapering off. Bernanke's remarks yesterday had Wall Street bankers running for the exits. Bond yields ratcheted up. Markets sold off in dramatic fashion.

Bank repo rates in China last night were quoted beyond 25%. That led to the greatest stock market loss in the Hang Seng all year, a nearly 3% loss.


Hong Kong Hang Seng Index

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HSI:IND

20,382.87604.02 2.88%




Three days ago, on CNBC, every guest and host said "buy stocks." That's the same shit I've been listening to since this manufactured QE recovery began in Mar. of 09.

It's always been a liquidity crisis. The world is awash in a sea of debt and even the masters of the universe can't change that. Extend and pretend time is over. The "spend our way out of debt" exercise is wrapping up. There is no "jobs recovery" just job splitting to evade Obamacare rules. There is no building renaissance as lumber prices tumble, no demand. In Boise, they've built a few apartments and condos- maybe a few high end homes- but that's about it. Vacant commercial property is still every where.

I think people are buying manufactured homes and plunking them down on rural land to avoid taxes.

A small bag of groceries at Whole Foods still costs 70 bucks. Gas has remained steady at just under 4 bucks a gallon. The government tells us there is no inflation as they massage input figures and data while raising our taxes.

Is the end of QEternity here? I doubt it. If they stop QE, financial armageddon arrives. Look what happened yesterday when Bernanke just hinted at slowing bond purchases and tapering off. The actions of international markets in the last 24 hours should scare the begeezus out of them.

Last night, I clipped this comment from a Zerohedge story on Chinese bank repo rates.

It’s about fucking time... Can we get this impending collapse shit underway already? My food stockpiles are nearing their expiration dates.

This morning futures are down sharply. Silver went below 20 bucks. Bond yields continue to rise. There will be no shortage of cheap stock salesmen on CNBC telling you to buy the dip today.

The spend your way to prosperity experiment is over. We return you now to your regularly scheduled financial apocalypse.

Comments

Anonymous said…
I don't have cable T.V. because I hate the shit that the mainstream spews. I would like to listen to what all the assholes on CNBS are talking about this morning. I wonder if they are telling the few last remaining viewers to "buy the dip". I love the smell of a good market crash in the morning. As for gold and silver I think it's another take down by the powers to be. When the dust settles in 3-4 months and more sheeple wake up, both metals will once again move higher. Gotta go the popcorn is ready and I do have live market quotes.
Anonymous said…
Brian, you might want to take a look at this interview that Greg Hunter did with the author Bob Weidmer. He wrote the best seller Aftershock. Good road map for whats coming.

http://usawatchdog.com/
Anonymous said…
Buffett and Soros have been dumping bank shares and share of companies that produce cosumer goods. They knw what is coming.
Anonymous said…
I'd say the gold/silver bull market is over. Its done. Finished.

So much for the "blow off" stage where prices skyrocket...what a con its all been!

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