Phoenix Capital Research's blog
Because we’ve reached a point in time at which $1 trillion no longer sounds like a lot of money, we thought we’d go through the exercise of assessing just what the Fed could have done with this money besides give it to Wall Street.
Upon closer inspection, the report was a total disaster. You wouldn’t know this from the financial media’s coverage, but it was.
The great attempt to prop up the US economy through spending and printing money is at an end. The world takes a long time to catch on to these changes, but the shift has already begun. It’s now just a matter of time before stocks figure it out.
The Central Bank intervention fiasco continues to unravel before our eyes.
Yellen is evidently aware that stocks are bubbling. As Fed Chairman she cannot admit it (no Central Banker will ever say the markets are in a bubble), but the signs that she is aware of this are present.
Investors take note. One of the primary market props of the last five years is being removed. What happens when the markets finally catch on?
Japan is where the Keynesian economic model rubber hit the road. And it's proven that QE is ultimately an economic dead end.
We believe Fed’s actions would be more appropriately described as permitted cancerous beliefs to spread throughout the financial system, thereby killing Democratic Capitalism which is the basis of the capital markets.
This pattern played out in 1907, 1929, 1987, 2000 and most recently in 2008.
The market is facing an increasingly negative environment. Historically speaking April and May have not been big months for crises, but the number of negatives the market is facing today is rather unique.
We all know what will eventually unfold: another collapse, this one even worse than that of 2008. Until then, the fraud and fiction will continue. Everyone with a vested interest in stocks moving up will do everything they can to perpetuate this.
The Cyprus bail-in laid the ground for a global wealth tax. The next time a crisis hits, savers will be picking up the tab.
Market tops usually feature something called rotation. This occurs when investors move out of former top performing companies or market leaders, into safer investments.
The whole situation is very reminiscent of the computer trading, which led to the 1987 Crash.
The global Central Banks are relying increasing on verbal intervention. The reasoning here is very simple: actual monetary policy is proving to have marginal effects. In the US, every new wave of QE has had less and less impact on the stocks.