It’s 2008 All Over Again… Only Worse

Phoenix Capital Research's picture

Bernanke and
pals wanted to recreate the same booming leverage and fiscal insanity of the
bubble years. And they’ve done that in a big way. Among their various


§  Commodities
are at levels not seen since 2008.

§  Gas
prices are at levels not seen since 2008.

§  The
US Dollar has fallen to levels not seen since 2008.

§  Bank
leverage is at levels not seen since 2008.

§  Microcap
stocks are at levels not seen since 2007.

§  Wall
Street bonuses are at levels not seen since 2007.


It’s really
striking the similarities. And all the Fed and US Government had to do was:


1)   Make
itself insolvent

2)   Bankrupt
the US

3)   Spend
Trillions in Bailouts and Stimulus

4)   Trash
the US Dollar


So what’s
the difference this time around?


Well, first
off, the US consumer is in far worse shape than in 2008. The US has lost some 7.5
million jobs since 2007. The U-6 unemployment rate (which accounts for
unemployed and underemployed) stands at 16.2%. These folks are in far worse
positions to stomach higher fuel and food prices this time around.


Speaking of
which, the number of people on food stamps is also up 58% since 2007. However,
even this safety net is proving less and less helpful as food prices skyrocket.
Indeed, Wal-Mart’s CEO recently commented that the firm’s customers are “running
out of money” due to higher fuel prices.


As for those
who have been receiving unemployment checks, the situation is getting grim.
Some 2.3 million of them have lost their coverage since last year. The Feds
claim that the US economy created 1.3 million jobs so only 1 million of the 2.3
are people who lost coverage and have no income. However, everyone on the
planet knows the “jobs created” myth is as full of BS as the “recovery” myth.


My point
with all of this is the following: we have entered a period quite similar to
2008 all over again. Energy and food prices are soaring. And the US Dollar is


The only
difference is that this time around, the US economy is FAR more fragile than it
was in 2008. The average American has far less to fall back on than in 2008.
And there are far fewer people with jobs than then.


On top of
this, the US debt load and balance sheet is far FAR worse than it was in 2008. We’re
running deficits and debt-to-GDP levels comparable to Greece.


In other
words, when this mess comes unhinged it’s going to be much, much worse than in
2008. And believe me, it WILL come unhinged.


And this
time, when it does, the Fed will have NOTHING to stop it. The Fed’s already
grown its balance sheet to roughly $3 trillion AND used every weapon it has to
combat Round One of the Financial Crisis. So when the next round hits this time
around, the Fed will be powerless to do anything about it.


On that
note, if you’re getting worried about the future of the stock market and have
yet to take steps to prepare for the Second Round of the Financial Crisis… I
highly suggest you download my FREE Special Report specifying exactly how to
prepare for what’s to come.


I call it The Financial Crisis “Round Two” Survival
. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).


Again, this
is all 100% FREE. To pick up your copy today, go to
and click on FREE REPORTS.


publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.


You can
access this Report at the link above.








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Bullionaire's picture

Would someone PLEASE download the 100% FREE SPECIAL REPORT so we can be rid of Captain Obvious here?

BeerGoggles's picture

Why do you keep posting? You've sold all your crisis trades at 30-40% loss.

eddiebe's picture

You all got to remember: The 'fed' are a consortium of bankers. You have to figure out what they are after and the means they are using and will use to get it.

 What they want is complete dominion. If they are adding a few trillion to their balance book, you can bet they will extract double that from us. Th

 They cannot do that with worthless currency. So what this means to me is that they will be shoveling frn.'s at us while they stock up on the real valuables.

 The next tool in B.B.'s box will be rising interest rates and rising gold prices. Then a frn. link to gold, so the bankers can collect 30 years worth of 15% interest on real money. Makes sense to me!

falak pema's picture

By then Main street will have been stripped to bare bones... including 401K of boomer's jeopardized... A lot of Oligarchs will also lose their shirts in derivatives wind downs if the interest rates REALLY hike...There will be blood...But the asset wind down is inevitable...probably after Nov 2012...if they can defer it by keeping china/Brics disciplined, and QE-2.5 pumping into 2012...big volatility is maximum...and nobody even amongst the Oligarchs has a real handle on black swan events : ME, Euro blow up, USA civil unrest, Japan imploding, China inflating beyond control. Many balls in the air...

gmj's picture

There is no such thing as a "free" report.  Why should I believe anyone who predicts disaster, and then offers to send me a "free" report ?  Where were the gloom-and-doomers in 2007, when they could have saved people a lot of grief ?  These guys have been completely wrong about the markets for two years now.  Did they just receive a divine revelation ?  Sorry, I don't accept future predictions from salesmen.  

malek's picture

Linear thinking would conclude the FED grows its balance sheet to $10T next mess.

honestann's picture

The fed will print, print, print... then blame their failure on others.

Everybodys All American's picture

The Fed will get more aand more desperate and that means the DOW is likely to move up 100 to 200 points a day as the Fed itself buys the market trying to keep the myth of recovery alive. Trust me these guys are that desperate and I know how they think about the stock market's "wealth effect".

HyperLazy's picture

"the Fed will be powerless to do anything about it"

Oh it won't stop 'em from trying. They will print mo' money! Maybe even outsource the printing from China.

Better yet the FED will just start a lottery with people's social security numbers, round up the lucky winners, throw them into shackles and sell 'em off into slavery until the national debt is solved.

Urban Redneck's picture

Reread the text of the Thirteenth Amendment- a simple act to change the federal sentencing guidelines is all it takes (excluding the ensuing civil war redux). 


in4mayshun's picture

As crazy as he is, David icke actually said something very intelligent awhile back. When asked by a viewer,"when will the world Elites let the system fail?"

His reply was, " When the Governments no longer have the means to stop a collapse."

It appears that time is quickly approaching and a global currency will be a shoe-in.

Sudden Debt's picture

This knowledge is starting to dawn on average Joe & Jane to.

I even start to think that if we go down again, we might finally get a bigger protesting crowd when the consiquences will hit mainstreat.


mfoste1's picture

people hitting the streets is exactly what will happen. When shit does in fact hit the fan(probably won't be for at least another 1.5 yrs), thousands of middle class Americans who have worked very hard for 40 years, only to have absolutely nothing to show for it(due to further slide in housing values and depleted 401ks), will finally wake up and realize what exactly has been done to them. I'm gonna go out on a limb here and suggest that it could get ugly.

eatthebanksters's picture

banksters hanging from lamp posts maybe?

topcallingtroll's picture

We have not yet had enough lamp pole dancers as a poster so poetically said yesterday.

Cyrano de Bivouac's picture

Sudden Debt, I always wanted to ask you this, would you like some frites with that?