End of the Financial World: 2014

Pivotfarm's picture


Don’t you just hate the smuggish guys that sit behind desks and that say ‘I told you so’? There’s probably only one thing you hate more and that’s the racers that are running to predict the end of the world. Doom and gloom. The financial world that is! But, it’s going to happen sooner or later this year, probably towards the end of the year and the start of 2015. The Federal Reserve and other world central banks have seen to that. Isn’t it surprising how the financial markets got themselves into a mess, and then the stuff hit the fan when the loose monetary policies started being bandied about as if it were the next thing since sliced bread? Pump up the volume and spray the money all over the place and then wonder why things go wrong. They sit at the Federal Reserve and wonder WCPGW. Unbridled optimism when Murphy’s Law predominates as it all goes pear-shaped.

Anything that can go wrong usually does. This is where it starts to go wrong today.

The Federal Reserve tried to put the fire out by spraying the cinders that had just been kindled with more banknotes. That Quantitative Easing didn’t ease a lot else than taking the weight off the governments that thought it would be a good idea around the world, momentarily making their lives easier. But, the game of falling dominos was bound to have endless repercussions around the planet.

The first in the long line to go were the commodities that erupted in a big bang in 2011, posting the biggest drops in gold and crude oil as the European leaders failed to stop the crisis when they should have done, with the ensuing erosion of energy, metal and crops. We all paid the price of that one. In December 2011 the Standard & Poor’s GSCI index (24 raw materials) fell by over 4% in one day and gold fell to its lowest price for 5 months. Oil also fell by 5%. 
The escalator went up and the lift just plummeted to the bottom of the shaft as investors wanted to get out of risk.

Then emerging markets dropped into the abyss and we now have a situation where the currencies of those economies (Turkey, Argentina, India and South Africa, amongst others) are to be off-loaded as quick as look at them, because the Dollar is going home as tapering starts. The Argentinian Peso has plummeted 84% against the Dollar in just a year.

Some are now predicting (just as they predicted the previous reactions) that it will be the housing bubble that blasts and goes pop (it will be a pop, because the rise was nothing like spectacular, but, it will blow all the same). The housing market has been propped up and credit has become easier to get even when there was no money in the pocket of the borrower. Dirty insolvency is still a problem. Bank on the increase of the economy and things will be ok was the order of the day and blindly turn your gaze away from the smacks of the housing crisis of the big financial crisis.

After the housing bubble bursts this year yet again, the stock market will crumble. Remember the lift will fall faster than the escalator that tried painfully to get us back to the top but that must have conked out half way up.

The ‘fall of man’ will be bigger than in the past. The original sin has been committed yet again and we shall fall from grace. Inflation has been handed to us as we enter a period of deflation; there’s no growth of any substance and there are no real gains in the economy in terms of employment try as they might to tell us ‘it’s just around the corner’. WCPGW?

Some specialists are predicting that there will be a fall in the S&P 500 to below 1,770 within the next couple of weeks, going as low in March as 1,600. The F**ederal Reserve** in the hands of Janet Yellen will have no other opportunity than to go all dovish and the market will act upon that immediately.

Predictions are bad because they are just that: only predictions. But, we all know deep down that the fall is on the books after the fools played with fire.

Originally posted: 

You might also enjoy: Kristallnacht on Wall Street? Bull! | China’s Credit Crunch | Working for the Few | USA:The Land of the Not-So-Free  


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Thu, 01/30/2014 - 11:30 | 4384113 the tower
the tower's picture

I know when the financial system will collapse, the day, and even the exact minute.

But unlike all the buy-my-free-report-peddlers, I won't tell you.

Thu, 01/30/2014 - 07:33 | 4383474 Mad Muppet
Mad Muppet's picture

WCPGW? Is that supposed to mean something to me?  For fucks sake, speak English.

Thu, 01/30/2014 - 07:47 | 4383484 ANDiam
ANDiam's picture

What Could Possibly Go Wrong. 



"For fucks sake" should actually read "fuck's sake"...only a suggestion to speak English correct like what I does;)

Thu, 01/30/2014 - 20:29 | 4386028 Mad Muppet
Mad Muppet's picture

"For fucks sake" should actually read "fuck's sake"...only a suggestion to speak English correct like what I does;)


I stand corrected.......I can only say that I heard it many thousands of times as a boy, in just such a fashion: "Oh for fucks sake!" Usually when I'd done something wrong.

Thu, 01/30/2014 - 01:47 | 4383280 Crawdaddy
Crawdaddy's picture

In 2000, Jude Wanniski observed people needed to sell stock in order to pay the taxes from the big run ups in 99.


"“The NASDAQ sell-off has me thinking of a connection to April 15 and
the fact that there is no withholding on capital gains,” Wanniski warned
last month. “There was a sell-off last year too, remember, with a bounce
back after April 15 and a flat market for some months thereafter. In
other words, people who took capgains before December 31 now find they
owe Uncle Sam and must sell equities for that purpose.”"


Thu, 01/30/2014 - 00:32 | 4383161 Lordflin
Lordflin's picture

Where were you when metals were pounced on in 2011... PF, I hate to break it to you, but you can't write, and your blogs are invariably imbecilic... You know the old saying... better to remain silent and be thought a fool... And so on...

As to 2011... COMEX margin was dramatically reduced over a two day period, while thousands of contracts were dumped on the market running stops all the way down. It was a massacre...

Thu, 01/30/2014 - 00:07 | 4383118 dexter_morgan
dexter_morgan's picture

ooohhh nnooooo, not again

Wed, 01/29/2014 - 23:55 | 4383085 Music101
Music101's picture

Check out Karl Denninger's Stock Picks Below -- MUST SEE!!



Wed, 01/29/2014 - 22:30 | 4382861 Kprime
Kprime's picture

Bank won't accept FRN printed prior to 2006

it's gotta start somewhere.



Wed, 01/29/2014 - 21:51 | 4382764 Intoxicologist
Intoxicologist's picture

What I want to know is what comes next after sliced bread?

Thu, 01/30/2014 - 05:04 | 4383388 The Heart
The Heart's picture

"What I want to know is what comes next after sliced bread?"

Hot butter.

Wed, 01/29/2014 - 21:31 | 4382705 10mm
10mm's picture

Every thing is predestined. 

Wed, 01/29/2014 - 21:20 | 4382677 rustymason
rustymason's picture

Zerohedge has been predicting the end of the bear market since at least 2008. You missed a hell of a bull market.

Thu, 01/30/2014 - 06:34 | 4383431 ebworthen
ebworthen's picture

Thank God.

Wed, 01/29/2014 - 21:17 | 4382668 lasvegaspersona
lasvegaspersona's picture

Chicken....come on...give us a month at least. Everyone know 2014 or early 2015. Even Senator Rudd (R-NH) said 2015 and that was in 2009 or 2010. 

I'll go first. I'm always wrong because I'm overly pesimistic but hows April 15? If it was good enough for Lincoln (to die on) its good enough for the dollar. Hey, it's also the day my savings account dies...every year, how fitting!

Wed, 01/29/2014 - 20:42 | 4382568 Son of Captain Nemo
Son of Captain Nemo's picture

Aren't we all getting very tired of saying

"This is some scary shit we're headed into"...

Let's get this over with and be done with it. 

My saddest moment will be when the United States of America launches into WWIII based on another fabulous lie like 9/11 (and it will) and better than half the military will know it is a lie and follow orders anyway.

Thu, 01/30/2014 - 04:28 | 4383376 Ocean22
Ocean22's picture

It will be a nuke.

Thu, 01/30/2014 - 00:31 | 4383156 yepyep
yepyep's picture

dont question the official 9/11 story dude its not "pc"

Wed, 01/29/2014 - 20:31 | 4382532 no more banksters
no more banksters's picture

"Neoliberal policies started by the previous government coalition of Social Democrats and Greens under Gerhard Schröder, continued by the current government of the Big Coalition between Christian Democrats, Christian Socialists and Social Democrats under chancellor Angela Merkel in the name of growth and brought huge profits for the capital without, however, improve life conditions for the majority of the German people.

The gap between rich and poor is getting bigger as wealth is concentrated in the hands of few, a characteristic feature of the famed globalization with the financial capital on top."


Wed, 01/29/2014 - 20:12 | 4382468 Doom Quijote
Doom Quijote's picture

Resistance is futile.  We're all doomed.

Wed, 01/29/2014 - 20:10 | 4382453 starman
starman's picture

would you like a 7%/10 9%/15 or 18% 30 year fixed Mr and Mrs Foocked?

Wed, 01/29/2014 - 19:59 | 4382424 Sudden Debt
Sudden Debt's picture

well, I expect it to start with exploding tax rates that will crumble disposable incomes all over the western world.
In europe after may it will start, right after elections.

Thu, 01/30/2014 - 05:07 | 4383389 The Heart
The Heart's picture

"well, I expect it to start with exploding tax rates that will crumble disposable incomes all over the western world."

It already has. It's called Obamacare.

Thu, 01/30/2014 - 00:34 | 4383152 yepyep
yepyep's picture

Theres a huge push for minimum socialized incomes across the EU as we speak, as the unemployment there continues to rise astronomically the particularly frustrated desperate and economically illiterate youth will see this as the solution, i would imagine this will precipitate said tax hikes if it succeeds.

you really could make an infinite list at this point of possible triggers for the coming collapse.

Thu, 01/30/2014 - 05:11 | 4383390 North Sea Cowboy
North Sea Cowboy's picture

Looks like the law of unintended consequences prevails and the Central Bankers have painted themselves into a corner. If they try and screw even more tax out of the Europeans it won't really be possible unless they include assets. Maybe any revolution that comes will be started from the top 10% ?

Wed, 01/29/2014 - 19:14 | 4382182 Squid-puppets a...
Squid-puppets a-go-go's picture

housing wont be the trigger this time - not while mark to fantasy persists

Wed, 01/29/2014 - 23:19 | 4382983 Stuck on Zero
Stuck on Zero's picture

The precipitating monkey wrench in the works of the world's economies: government.


Thu, 01/30/2014 - 02:04 | 4383291 old naughty
old naughty's picture

some say it's all Greenspan's plan-in-a-plan...we'll soon find out.

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