Phoenix Capital Research's blog
Yellen doesn’t care about the economy. She cares about the US’s massive debt load AKA the BOND BUBBLE.
The financial media is euphoric because stocks are rallying. But stocks are ALWAYS the last to “GET IT.” The currency markets (which trade $5 trillion per day) realize that something MASSIVE is underway. And it’s only just beginning.
Forget about the Fed’s language and its FOMC meeting. The real story is the $100 trillion bond bubble (more like the $191 trillion interest rate bubble based on bonds). When it breaks, it doesn’t matter what the Fed says or does.
The bond bubble today is over $100 trillion. When you include the derivatives that trade based on bonds it’s more like $500 TRILLION. And it’s growing by trillions of dollars every month (the US issued $1 trillion in new debt in the last 8 weeks alone).
The story here is not Oil; it’s about a massive bubble in risk assets fueled by borrowed Dollars blowing up. The last time around it was a housing bubble. This time it’s an EVERYTHING bubble. And Oil is just the canary in the coalmine.
This is a MAJOR warning signal that the great “recovery” in risk assets was ending. The Fed spent over $4 trillion and managed to create another stock market bubble, but that bubble is ending.
So… the prices of assets are fraudulent, the value of balance sheets is fraudulent, and earnings are fraudulent. This means that stock market caps, balance sheets, and income statements are all inaccurate representations of reality.
Could the Entire Post-2011 Move Be Just One Big False Breakout...A Blow Off Top Induced By Manic Money Printing?
The entire “recovery” story was total BS and that the Fed has made things worse than before. As always, stocks are the last to “get it.” But we wouldn’t be surprised to see a crash in stocks in the coming months.
This problem is north of $9 trillion… literally than the economies of Germany and Japan COMBINED. And it's bursting NOW.
THE bubble, the biggest bubble in financial history: an incredible $100 trillion monster that is now growing by trillions of dollars every few months.
The 2008 Crisis was a stock and investment bank crisis. But it was not THE Crisis.
"Let me be clear, there is no Fed equity market put." Bells are ringing for stocks...
Today the Euro is on the cusp of breaking critical support. Draghi will likely see this as a success (he wants inflation). More likely, it will bring in another round of the EU Crisis (the same line was hit when Greece imploded in 2010 and when Spain imploded in 2012).
Stocks are not cheap. In fact, they've only been more overvalued ONCE in the last 100 years.