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Why You Should be Freaked Out About the Stock Market

Phoenix Capital Research's picture




 

 I doubt you
will see this chart in the mainstream media any time soon... if EVER.


This is a chart of the US monetary base. In simple terms, it charts how much
money the Fed has pumped into the system (at least that it admits). So it’s a
kind of visual of the Fed hitting the PANIC button: when the monetary base
explodes higher, the Fed is FREAKING out.

You'll note that during the Financial Crisis the Fed didn't do much until the
autumn of 2008 when it pumped nearly $1 trillion into the system. Think about
that, the Fed didn’t go nuts pumping money until the stuff REALLY hit the fan.

You'll also note that there's only one other time when the monetary base went absolutely
vertical: TODAY.

Indeed, the Fed has pumped nearly $500 billion into the system since the start
of 2011. Don't even try to tell me 
this is QE 2. If it was then the monetary base should have spiked in
late 2010, NOT in 2011.

No, this is the Fed FREAKING OUT about the financial system again. And it's a
freak out on par with 2008.

So if you think that all is well "behind the scenes" you're in for a
rude surprise. Something BIG is going down and it's NOT good.

And rest assured, by the time the mainstream media announces what it is, it
will already be in full swing.

 

Prepare Now!

 

Graham
Summers

 

PS. 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
Kit
. 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, got to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

PPS. We ALSO
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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Sat, 03/26/2011 - 03:20 | 1102402 OldPhart
OldPhart's picture

Look at any website found from the query of "Who owns the Federal Reserve?" and you find the answers ranging from that of the Federal Reserve Corporation itself to one of these.

Fri, 03/25/2011 - 21:24 | 1101875 rlouis
rlouis's picture

Indict and prosecute the Fed under RICO ... hmmmm, too bad it'll never happen.  However, it seems that the destruction of the nation's financial system and destruction of the currency ought to be a criminal act.  And, so should lying to start a war, let alone other treasonable acts.

Fri, 03/25/2011 - 21:17 | 1101859 Thorny Xi
Thorny Xi's picture

Back in the 80's, the FAA was still using a late 1960's programming language to develop and run the country's entire ATC system; I think it was called PLATO. (They might still be using it! ) I asked a friend who worked as a program designer there, "So, how does it work, using this old system with all the planes we have in the air today?"  His reply:  "At the FAA, we start with the assumption that it is a really big sky."

Surely, this same theory is behind relentless Fed asset sheet multiplication. 

It is a big bank, after all. 

Fri, 03/25/2011 - 21:11 | 1101843 string
string's picture

Soooo tired of the Phoenix Cap Research crap.

So little info... soooo much touting their own services.

 

Fri, 03/25/2011 - 23:15 | 1102111 essence
essence's picture

well then ghost... feel free to either tune out, or supply content yourself.

You read Phoenix Cap Research for free.
How many other things in life are free?

Don't like Phoenix, then either STFU or offer something yourself.

No whinging.

Sat, 03/26/2011 - 16:35 | 1103630 Joe Grannville
Joe Grannville's picture

Please.  It's free because it has no value.  I tune in here occasionally for laughs.  You've got Tyler "Tokyo Rose" Durden inflaming Chicken Little land with posts that may as well come from Alex Jones. 

Example:  Last Sundays post regarding the BIG GULF OIL SPILL PART II.  To me the photographs looked like the yearly spring run-off of silt that has been washing down the Mississippi river since creation.

 

Sun, 03/27/2011 - 20:03 | 1106971 Dave
Dave's picture

Who is Alex Jones?

Sat, 03/26/2011 - 16:38 | 1103627 Joe Grannville
Joe Grannville's picture

Yikes.

Fri, 03/25/2011 - 20:56 | 1101799 proLiberty
proLiberty's picture

The Fed, with the collusion of the government, is doing worse than taking over.  They are putting every citizen, and especially those in the future generations, in debt slavery to those who to whom they have sold our future income stream to in order to fund the welfare-warfare state today.  The actions of the Fed has the effect of being treasonous.

 

Fri, 03/25/2011 - 21:32 | 1101892 James
James's picture

"The actions of the Fed has the effect of being treasonous."

 

 

Yes, that has been true since the Feds inception in 1913.The Constitution Does Not allow the fed to exist.

 

Sat, 03/26/2011 - 01:07 | 1102261 Milestones
Milestones's picture

Well I'm glad to see someone else pick up on that little fact!!    Milestones

Fri, 03/25/2011 - 20:43 | 1101767 Republican Lackey
Republican Lackey's picture

The something big going down is PM's.

Fri, 03/25/2011 - 21:03 | 1101823 Buzz Wired
Buzz Wired's picture

The something big going down in PMs, means their fiat price is going up.

Fri, 03/25/2011 - 21:27 | 1101877 James
James's picture

Which means the fiat value of a dollar continues to slide...........................

Fri, 03/25/2011 - 20:43 | 1101747 Blank Reg
Blank Reg's picture

I hate to admit it, but I rather feel like old Nero, fiddling while Rome burned all around him. Funny how 25 lbs of silver can do that. Nothing I read in the newz phases me anymore. In fact I'm getting impatient waiting for the dollar to crash. Bring it on Bitchez!

Fri, 03/25/2011 - 20:45 | 1101776 Republican Lackey
Republican Lackey's picture

$12,000 in silver and you're set for life? What are you on?

Sat, 03/26/2011 - 11:05 | 1102781 SilverRhino
SilverRhino's picture

Think of it more like 25 pounds of gold.

Sat, 03/26/2011 - 09:50 | 1102618 ZapBranigan
ZapBranigan's picture

"$12,000 in silver and you're set for life?"

 

More like just under $15,000 douche sack.  Learn math and weight ratios fuckface.

 

Fri, 03/25/2011 - 21:57 | 1101945 Attitude_Check
Attitude_Check's picture

$12,000 TODAY

Fri, 03/25/2011 - 21:20 | 1101869 James
James's picture

But hey, it's redeemable in wortless fiat dollars!

Fri, 03/25/2011 - 20:36 | 1101739 bluebare
bluebare's picture

So, I had the cause of the freak out (nuclear meltdown in Japan IMHO) shorted a couple of days ago and it didn't work out (and now I know why).   I exited with a small loss and am reloaded yet again.  This is not a game for the slow or faint-hearted, again IMHO.  Just sharing one investor's insight into real-time gaming strategy for what it's worth which is not much to most I'm sure.  But I'm sure many agree that we're one day and one black swan closer to a market meltdown than we were yesterday.  This is how it played out for me this week.  That is all.

Sat, 03/26/2011 - 16:46 | 1103659 Joe Grannville
Joe Grannville's picture

I'd sit back and relax.  The name of this blog should be "Abandon hope all ye who enter here" and not zerohedge.  This post is the "we're all doomed" du jour.

Fri, 03/25/2011 - 22:26 | 1102003 web bot
web bot's picture

This will likely happen in stages.

Be patient and reload during the dips. I am personally expecting a collapse in PMs along with a market correction sometime before end of May.

PMs them snap back once the world realizes that QE3 is coming... or we have some event such as collapse of the COMEX or some other unforeseen financial crisis.

Fri, 03/25/2011 - 20:32 | 1101737 Backcreek
Fri, 03/25/2011 - 22:47 | 1102056 Flounder
Flounder's picture

You mean that chart is not supposed to look like that when times are good?

Fri, 03/25/2011 - 20:29 | 1101729 rustymason
rustymason's picture

Karl Denniger points out that:

"...According to this measure, domestic profits of financial corporations increased and profits of nonfinancial corporations decreased. "

The Vampires are once again increasing the amount of blood they are sucking out and consuming.  How much more does the host have before it collapses from circulatory volume insufficiency?

Nobody went to jail, and as a consequence the behavior that is at the root of the problems we face has not changed.

http://market-ticker.org/akcs-www?post=182948

 

Fri, 03/25/2011 - 20:11 | 1101691 Withdrawn Sanction
Withdrawn Sanction's picture

Of course something's brewing.  With so many pins floating around lately, who's to say which prick will do the trick.  But knowing the identity of the exact prick is not necessary in any case.  You really only need keep in mind that the monetary rocket surgeons bought some very expensive time since March 2009, and now it's running out.  The next bit of time purchased will be much more expensive and not last nearly as long.

Fri, 03/25/2011 - 22:50 | 1102066 LostWages
LostWages's picture

You shouldn't call Benny and Banksters pricks.

 

They are fucking pricks.

Fri, 03/25/2011 - 21:14 | 1101846 sunny
sunny's picture

 But knowing the identity of the exact prick is not necessary in any case. 

Hey, I've known quite a few pricks in my day, I even had a few for supervisors and....  NO WAIT, you don't mean that sorta prick, you mean for the bubble....

Sorry, back the the regularly scheduled programming.

sunny

Fri, 03/25/2011 - 19:58 | 1101660 rustymason
rustymason's picture

Me Hercle!  What's the source of this data?

Sat, 03/26/2011 - 00:17 | 1102194 RockyRacoon
RockyRacoon's picture

Direct from the proverbial horse's mouth:  St. Louis Fed.

Hint:  Read the chart.

Fri, 03/25/2011 - 19:51 | 1101643 johny2
johny2's picture

I am already freaked out by the fact that market goes up no matter what is happening. It is like a Zombie in the movies, it gets shot but it never goes down. 

Fri, 03/25/2011 - 22:36 | 1102030 New_Meat
New_Meat's picture

and no one is wasting their silver bullets, either. - Ned

Fri, 03/25/2011 - 19:36 | 1101617 duncecap rack
duncecap rack's picture

Seems to be a similar theme to the recent news from the IMF about how they were expanding there emergency preparedness funding.

Fri, 03/25/2011 - 22:33 | 1102013 web bot
web bot's picture

Any other time period in the last 10 years and any one of these events (Japan, Libya, now Syria, >$100 oil, etc...) would have caused a major market correction.

The stock market acts like it is on crack... none of the old rules, patterns or correlations work... this tells me that when the crack is removed...we re in for some serious withdrawal.

Fri, 03/25/2011 - 19:32 | 1101609 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Judefetzen bitches!

Fri, 03/25/2011 - 22:42 | 1102041 Andy Lewis
Andy Lewis's picture

Eat my shit.

Fri, 03/25/2011 - 19:58 | 1101668 Bearster
Bearster's picture

is there any topic that does NOT bring out your inner nazi?

Sat, 03/26/2011 - 13:49 | 1103215 CH1
CH1's picture

Probably a Fed, here to waste our energy.

Fri, 03/25/2011 - 20:58 | 1101807 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Make no mistake, i hate all humans equally.

Sat, 03/26/2011 - 15:43 | 1103475 Tater Salad
Tater Salad's picture

Ditto that Funky, my wife's long been looking for a t-shirt for me that says...

"I've narrowed it down to one group of people I don't like....others"

 

Sat, 03/26/2011 - 09:18 | 1102596 falak pema
falak pema's picture

even the big boobed, bubbly, graceful shouldered, straight backed, sweet faced, innocent, bow lipped, dimpled cheeked, rose tainted, honey suckled, jasmine breathed, blue eyed, tight waisted, firm butted, divinely long legged, tapering ankled, dainty footed, lasciviously ravishing smiled, goose pimply  blond?

Sat, 03/26/2011 - 09:51 | 1102624 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

I love them before and during, but hate them afterwards.

Sat, 03/26/2011 - 10:31 | 1102681 falak pema
falak pema's picture

You'll never get second helpings then...

Fri, 03/25/2011 - 21:56 | 1101941 Attitude_Check
Attitude_Check's picture

So you like yourself then?

Sat, 03/26/2011 - 08:37 | 1102551 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

I hate myself the most for hating all humans.

Sat, 03/26/2011 - 09:49 | 1102621 Urban Roman
Urban Roman's picture

Oy veh!

Fri, 03/25/2011 - 22:36 | 1102023 New_Meat
New_Meat's picture

excellent connundrum!

Fri, 03/25/2011 - 20:21 | 1101715 Reese Bobby
Reese Bobby's picture

Sparky wouldn't qualify as a Nazi.  You had to be tough in that brutal org...

Fri, 03/25/2011 - 19:24 | 1101589 almost_have_a_name
almost_have_a_name's picture

That's not the FED "FREAKING OUT",

It's the FED "TAKING OVER THE COUNTRY"

 

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