This page has been archived and commenting is disabled.
The Bond Implosion Has Officially Begun
The QE Infinite parade officially ended yesterday when Bernanke hinted at tapering QE later this year or in mid-2014.
I first warned my clients about this in mid-May writing,
If Bernanke is going to step down (as hinted by his decision to skip out on the Jackson Hole meeting) he’s not going to want to leave with the Fed going at QE 3 and QE 4 full throttle.
Instead his best bet would be to take his foot off the gas a little bit, giving his replacement a little room to maneuver if things get ugly.
Source: Private Wealth Advisory
This is precisely what Bernanke is trying to do. However, there is another far larger issue at work here.
The primary driver of stocks for the last four years has been the hope of more Fed stimulus. This hope has put a floor under ALL asset prices as market participants KNEW the Fed was involved in the markets. As a result EVERYTHING (stocks, bond commodities, even currencies) has been artificially propped.
By calling for the end to QE 3 and QE 4, the Fed has begun to remove these market props. Which means that the markets are now going to start adjusting to where assets prices REALLY SHOULD BE.
Take a look at the spike in the 10-year Treasury yield:
This is just the start. I warned my clients subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.
This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.
If you are not preparing in advance for this, the time to get started is NOW.
For insights on how to prepare for a market collapse… including taking out portfolio “insurance” and which investments perform best during a crash…
http://gainspainscapital.com/protect-your-portfolio/
Best Regards
Graham Summers
- advertisements -
I actually almost feel sorry for ol' Berstank. He now knows that his thesis is bunk and he has failed. He knows that it is all coming apart, his contribution, and the 100 years of maleficence by his predecessors. He's out of fingers, toes and other "digits" to plug the dike with but has to keep things together until the end of January.
I wonder if he has had any nightmares of guillotines yet?!
This is too much for me to digest. At least I finally figured out how to uninstall McAfee. Thanks John.
http://www.youtube.com/watch?v=bKgf5PaBzyg&feature=player_embedded
Funny as shit and so true!
If you still use McAfee or Norton you are pretty brain-dead or like to be dominated and robbed.
Wrong - there will be no explosion, no collapse, etc.
According to Peter Schiff, when the dollar begins to hyper-inflate, nobody will buy U.S. bonds, so the government has to buy its bonds to save the dollar. By doing this, the government creates a "super-bubble" where investors jump in to day trade, which makes the bubble even bigger. This bubble will be the "mother of all bubbles", and when it pops, the game is finally over.
All the government would need to do to arrest the hyperinflation is raise taxes to increase demand for dollars.
Lawdy, lawdy the Yankees be taking the market all the way down.
and to think that this guy gets paid for this garbage
"The Bond Implosion Has Officially Begun"
I doubt it.
Well, place ya bets however you best see fit then. Buy bonds if you think they're so great.
Bond bull not over. This is a BTFD opportunity. We are Japan circa 1997. See Koo (http://www.paecon.net/PAEReview/issue58/Koo58.pdf), Figure 11.
Timing a market rally or collapse is extremely tough to do and there is no one here that can claim to be a guru trader based on timing. Graham Summers is fundermentally correct about the market however for traders, timing is everything. Any bear who has predicted any collapse in the last 4 years has had egg on his face and in a levered business, accounts are destroyed. But the fundermental bearish argument about levered debt and collapse is still very valid.
Not if you work for the NSA and know every word the central bankers are going to say publicly before everyone else.
I like Phoenix Capital, just like I love my gold fish. Same attention span, same memory potential, and when I'm done loving them I simply flush them down the toilet.
Ohhhh shit. Here we go.
Just like you warned your clients last year that there would be no QE 3? Moron.
when you read big word like "Collapse" you can be sure you can pass the rest of the analysis.
Zerohedge web site is like a reservation for conspiracy theorist.
The fact that you don't have to be excessive to write good analysis escaped most of the contributors long ago.
No no no, he said the Euro-zone-land-thingy would be gone by the end of summer ... 2012.
Oh hang on ... sorry, ... ur right, he did.