Yes, Another Crisis is Coming… and It Will Be MUCH Worse

Phoenix Capital Research's picture

The Euro
continues to rally despite the clear fact that the Eurozone is a disaster. It’s
strange than grown adults can actually be discussing another Greek bailout when the first one was just one year ago and
accomplished nothing. Of course, if the world traded based on fundamentals or
common sense, the Euro wouldn’t even exist at this point.


At the heart
of this entire situation is the key relationship that determines all economic
policy: the relationship between banks and politicians. Most voters in
developed countries continue to believe that their vote has some kind of
influence in politicians’ decisions. They believe that they somehow can effect
change at the ballot box.


The reality
is that elections are largely for show these days. Politicians openly sell out
their constituents to corporate donors, particularly banks, whether it be by
directly taking large donations/ bribes or by appointing ex-bankers and other
financial stooges to key decision making positions.


After all,
when was the last time some politician picked an engineer or doctor or someone
who might actually know anything about… well anything to a position of power? Try never.


No, instead
politicians surround themselves with run of the mill financial stooges. Take
the US where we allow guys who have rendered entire institutions (and
endowments) bankrupt to be key economic decision makers. Heck, we even allow
these types to “regulate” their former employers.


situation is no better in Europe. Angela Merkel tries to maintain the illusion
that she somehow will do the right thing (tell Greek bond holders to shove it)
but in the end she always buckles. Why? Because German banks are on the hook
for $65 billion worth of Greece’s debt. 
And whenever she comes close to telling them to take a hit, someone
calls her up and tells her that if she does this the bank will implode.


It’s a
perfect circle of influence: banks back politicians who once in office dish out
the goodies/ handouts. And if the banks screw up, they threaten to take down
the financial system, thereby destroying the politician’s chance at


All in all
the banks have done leverage buyouts of Government. The leverage is political
in nature (“screw us and we’ll take you down”). The buyout is in the form of
donations/ bribes.


However, the
primary problem with this system (aside from the fact it’s completely immoral)
is that there are no consequences for bad decisions for the banks. Thus, they
keep making bigger and bigger bets using more and more leverage thereby
increasing systemic risk.


Consider the
derivatives market which now stands north of $600 TRILLION in size. How do you
think this was allowed to happen? The banks pushed the politicians into rolling
back regulation, the banks then went nuts, and now the entire financial system
is in jeopardy.


already had a taste of this in 2008 when the Credit Default Swap (CDS) market,
which was $50-60 trillion in size, blew up. We’re now rapidly heading towards
an interest rate Crisis and the interest rate-based derivative market is four
times as large roughly $200 TRILLION.


This is what
happens when no one gets punished for screwing up, the screw-ups get bigger and
bigger. And this time around the screw up will involve entire countries going
belly-up (see Greece).


It’s already
happening in Europe. Whether or not Greece gets another bailout is irrelevant.
The European banking system is collapsing. And it’s going to spread to the US
in short order.


So if you’ve
not taken steps to prepare for the coming Crisis, you NEED To download my FREE
report devoted to showing in painstaking detail how to protect yourself and
your portfolio from the coming ROUND TWO of the Financial Crisis (round one
wiped out $11 TRILLION in wealth).


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,
which to avoid, 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.






PS. We also
offer a FREE Special Report on the inflation situation in the US. This other
FREE Special Report, The Inflationary
explains not only why inflation is here now, why the Fed is
powerless to stop it, and three investments that absolutely EXPLODE as a result
of this.


All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.


To pick up
your copy today, go to
and click on FREE REPORTS.








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nah's picture

the EU will not determine when the world ends.... hell not even peak energy will provide more than practicle technological comfort


my bet is on obama 2012

chump666's picture

google: AIB delay CDS, Irish Times. EUR sales on

SamuelMaverick's picture

Easy there guys.  He is giving one solid piece of info, in 2008 the cds problem was 50-60 trillion, this year the problem is 200 trillion. That info is pretty freakin important re how bad this might get. Feds Pomo going from 100 Billion / month down to a lousy 17 Billion / month of reinvestment at the end of QE2 in 2 weeks.  Some of the zero hedge links / contributors have kept me and all of you informed about stuff the MSM either has no clue about or omits. Zero Hedge, Phoenix Capital, Casey, Underground investor, Reggie, Kitco, King world news, etc etc etc have helped my family and myself preserve what $ we have, and in my case make some, and that is only with their free newsletters. Quit bitching.

theopco's picture

Talentless shmucks like this dude keep the lights on at ZH. I for one don't mind. I do read what he posts here. I also rubberneck on the freeway. So what?

Reese Bobby's picture

I'm sick of these Mayan cunts.  What, too strong?

vomamint's picture

I liked it, chumps.

JW n FL's picture

How many investment houses take ZeroHedge info and trade with the Facts.. or Promote the Facts to Trade or Invest by?


I am just sayin.. so one show me who else is putting their money where their mouth is, save Tyler and his short China /shadow Muddy Waters?


I say Fucking Kudos to these guys for giving it a try..


I say Kudos for these guys being on page..


I say Kudos for these guys walking it like they talk it!


They are Fight Club.. You wanna bash an Investment house? try JP Morgue or Goldman Sachs.

Cone of Uncertainty's picture

Download this bitch.

…(‘(…………. ¯~/’..’)

MiningJunkie's picture

To find out how to protect yourself against a massive revamp upward in the replacement value of stocks when currencies collectively go "no bid", download my free report at and live safely for at least 38 minutes...

Moe Howard's picture

I can't afford his report.

SHRAGS's picture

Again, this is all 100% FREE. To pick up your copy today, go to:

Phonex Capital Research report: Financial Crisis Round Two Survival Guide [scribd]

Phonex Capital Research report: The Gold Mountain [scribd]

Phonex Capital Research report: Inflation Armegeddon Survival Guide [scribd]

Brian's picture


I downloaded and read your free reports.  My constructive criticism is that the reports are good, but they really need updating.

The contents would have been interesting to me 18 months ago, but by now, all your timelines and materials are obsolete.  I doubt it would take too much work to get them current and relevant, and I'm looking forward to reading your newsletters.

I hope you will take this advise and let me know when you have updated materials.



topcallingtroll's picture

If a hundred billion market cap insurance company ensures a million lives for one million each then it has potential liabilities of one trillion dollars of exposure.

The total notional amount of maximum exposure doesnt mean a whole lot because not everyone is going to die at once and in the meantime the company continues to collect premiums. Most of the people wont die, and their death options, otherwise known as life insurance, will expire worthless.....burn theta burn.

So why worry about total notional amount of maximum derivative exposure outstanding? It is just another insurance contract.

jackbooted gauleiter's picture

"Most of the people won't die"!!! Tell me, where do I get hold of the elixir they're taking? I was under the impression that we all died.

centerline's picture

I am way out of my league discussing derivatives, but I wager that it is partially in the complex nature of how these instruments came to be that creates a potential disaster (domino effect) if any significant default(s) were to occur. Also, I would question if the creation of these instruments allowed leverage to be increased accordingly. I assume here the answer is yes - and that one of the primary reasons for creating these instruments was precisely that. Therefore, it may not be instrument itself that is dangerous... it is that the damage was already done but not yet realized. Again, just novice speculation here. Any pros in the room tonight?

topcallingtroll's picture

If a hedgie can explain the underlying assumption that this analysis correct and thus the one special case where this insurance analysis might be wrong then you can also win a date with the troll.

Shell Game's picture

Would I have to buy you dinner first?

DogSlime's picture

Most of the stuff on ZH is excellent, but this repeated copy-pasted advert for snake oil, dressed up as a proper original article seems really cheap.  Disappointing.

SwingForce's picture

Boo Hoo mutha fucka

davebrik99's picture

Tyler..........R U hurting for articles.???  I can do better!!

davebrik99's picture

Criminetally  Tyler........can't you do any better than this  ADVERTISEMENT????

NotApplicable's picture

Now there's a word I don't believe I've ever seen in print before.

You sound old. ;-)

Absinthe Minded's picture

Quit yer bitchin'. When you see an article by Phoenix Capital Research
don't fuckin' read it. Problem solved.

speedy's picture

 + 1 Exactly!

There are enough good articles here, why bother reading the spam.

SpiritBlade's picture

The article offers nothing new, the "free" report offers nothing. I would be willing to be that the paid info that they are really trying to sell is a collection of no brainer investment tips, or useless info done by lesser minds than we.

Poor taste ZH



snakehead's picture

Quit spamming the board.

walcott's picture

commence implosion and start over.

TooBearish's picture

You summarize the status quo quite well and succinctly - therefore nothing will change until the connection is broken , ie the banks are broken up into smaller less significant players or the money some how stops flowing into the politicians re-election funds. 

Probability of that happening = ZERO (because the banks now own Obama and his successor)

10kby2k's picture

The sky is falling every day at Phoenix Capital research. WHEN IS IT GUNNA FALL????? I'd be broke if I shorted off your daily doomsday headlines.

Shell Game's picture

This is NOT new material. Summers not three days ago:

An advertisement with new material is tolerable. But, an advertisement with NO new material is a contributor abusing his privileges...

Bob's picture

Clear abuse of contributor posting privilege . . . or he's paying more than we would guess for the advertising "privilege."

Popo's picture

Has he ever posted new material?

speedy's picture

Maybe the first time he posted it, it was new ( at least here).

I only opened the post to read the scathing comments about the post.  They are always fun to read.

George the baby crusher's picture

Thank you, didn't have to say it myself.

Shell Game's picture

Even the title is nearly identical. Though, moving the all-caps almost got me..  ;-)

DoChenRollingBearing's picture

Actually, Graham Summers flogging his blog is OK with me!  Gives me a similar excuse...  Send me a gmail (my name), promise you'll be civil, and I will send you a link to my blog (as it is under my real name I do not post it here).  Latest article: "How Much Gold Should You Hold?"  150 Zero Hedge members can't be wrong!

DosZap's picture



Your WHOLE damn name?.LOL

Why not a simple

Easier to remember............LOL

Yes, I hope Tyler's making a killing off of these ad's.

Because they have become like the relative who comes to visit a couple of days........and he moves in.

MHFT get's beaten like red headed step child here for his articles this is borderline ZH abuse.


DosZap's picture



Your WHOLE damn name?.LOL

Why not a simple

Easier to remember............LOL

Yes, I hope Tyler's making a killing off of these ad's.

Because they have become like the relative who comes to visit a couple of days........and he moves in.

MHFT get's beaten like red headed step child here for his articles this is borderline ZH abuse.


Shell Game's picture

No, Bearing, there's a big difference.  Summers is a contributer, you are a blog particpant here.  Anyone who contributes as an author here should have the decency to provide a new article with said 'flogging'. Otherwise they too will get summarily flogged!  ;)

And if memory serves, you deleted two cordial posts of mine on your blog, not a very nice thing to do.. 

zorba THE GREEK's picture

 rehash rehash rehash tell me something new

Popo's picture

Another worthless post-vertisement from Graham Summers.

treemagnet's picture

no kidding, same song every time.

XitSam's picture

In a different key, but the same song every time.

Buck Johnson's picture

When this happens and hits our shores we will be confused as to how to fix it.  Not realizing to fix it is to take our fiscal medicine and to allow things to fail, including the dollar.

Weisbrot's picture


the following chicken little quote seems appropriate

the sky is falling, the sky is falling