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The Fed Disappointed... The Great Collapse is Here
I’ve been warning for weeks now that the Fed would disappoint with its September meeting. And boy did it.
As I forecast, the Fed didn’t announce QE 3. In fact, it didn’t announce any new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.
On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Fed’s implementation of QE lite which to date has been about $300 billion give or take in scope.
Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, “there are significant downside risks to the economic outlook.”
Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing/ printing. This time around, the market senses that the Fed has disappointed and that the Fed’s move is largely symbolic more than anything else.
The end result of this: the market is Crashing just as I warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.
We’re just getting started here. Today we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.
It's just triggered again... which means that today's sell off is JUST the beginning of what's coming. Indeed, I fully believe that the Great Collapse, the time when the Fed completely loses control of the markets, has arrived. We're going to be seeing Market Crashes, Bank holidays, riots, food shortages, and more in the coming months.
If you have yet to prepare yourself for what’s coming, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).
Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
Good Investing!
Graham Summers
PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.
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Whatever, Warren. Go stuff yourself with a big box of See's candy..
It's amazing how you just cannot help some people....
we're taking out 1100 and then some...
Right Dangertime because no matter HOW shitty and broken the economy is, Bernank will always come rescue you with more free money!
WAKE UP!
Sheepdog,
I agree that the economy is shitty and broken. But is has been for a long, long time.
I highly doubt that this is the time that it falls down and does not get back up.
'Get back up' with what more free money printing?
I am not convinced that we need more money printing to go back up. Although you are correct, that is absolutely one driver.
I just think there is too much panic.
I take it you are a deflationist and are mainly in cash?
PANIC? I dont know where you see a bunch of panic, every day 99% of all articles are telling me about market unicorns shitting piles of delicious Skittles and pissing chilled pink lemonade by the pitcher...until a few hours ago we were entering the land of market milk and honey with all the Bulls calm as Hindu cows...'the Bernank got ther back' and all. All over the market I see 50 P/E stocks which have no business being there at all, I see no reason at all to go up, we're in a depression, and every reason the pumped up markets have a whole lot of downside.
there's no panic yet.
No bank runs yet. When BAC or SocGen have the first bank run, that will precipitate the panic.
Fundamentally, you are correct.
Psychologically, you are wrong. This is an extreme selling point for the market right now. It will bounce back higher.
For the same reasons that gold has not yet reached $5000 like it should, the markets will rally back. Nothing goes in a straight line, regardless of the fundamentals. People's emotions always get in the way.
Patience. One day gold will be $5000, and one day it will be par with the Dow. That day is not in the next few weeks, as so many here would like to claim.
'Extreme selling point' and we only have upside potential from here'? We're only 15% from ALL TIME market bubble highs!! We're in a DEPRESSION man! With a blown out economy!
I think his fundamental argument goes like this:
"In the past, the stock market has done X when condition Y was in place. Therefore, it will do so again."
There's really no way to effectively argue that there is a reason to doubt that the Sun will rise tomorrow. For those who equate market behavior with planetary rotation... well. Many don't recognize that economics is part of the social sciences - which is really an oxymoron.
All time NOMINAL highs.
Depression yes, I agree.......but again, you are confusing fundamentals with psychology.
Too soon, but definitely buy before these guys say 'Buy'.
Never try to catch a falling knife.
Buy when there is blood in the streets.
What blood?
A lot of red today....LOT of red.
I'm not arguing your point but I think "lot" is a relative term.
Good point. This is why it's a good idea to layer into any position.
OK so youre buying stocks here then...which stocks?
FCX and TGB.
Copper is waaaaay oversold.
It's Robos estranged twin.
CNBS just called...they want you as a guest host.
LMAO
News from Down Under.
"Fed over a barrel".
http://www.theaustralian.com.au/business/markets/australian-stockmarket-tumbles-26pc-to-six-week-low/story-e6frg916-1226143787658
It's over for the Bernank and his baby, the entire Ponzi scheme and so I post the Big O with his rendition of an end to things as both satire and something to enjoy, from a man FAR removed from the callous world of finance and banksters ... hope you get the irony:
http://www.youtube.com/watch?v=LMc263klrMQ
Also on a take of the Wall Street Casino ... Penny Arcade (Australian recording):
http://www.youtube.com/watch?v=QxFVfyUgaQk&feature=related
Riots, tigers and bears, Oh My!
The great Graham has spoken, and this time really, truly, the end is nigh
How much does it cost again to get the hell out of OZ?
Don't you feel just a little cheap when we see you hiding behond the curtain?
bwahahahaha
ty
funny stuff
Start in 2009 and aggressively market that "The CRASH is coming" and keep the tape in "Replay" while laying everyone out on the short side until finally a CORRECTION occurs and then you claim victory with 14% of your money left.
www.pumpmynewsletter.com
Geez, these posts are tiring.
I'd be more interested in seeing all the other "predictions" that failed. However, my greatest wish is to see this poster seek some form of paid advertising than utilizing this ZH posting space to spew.
If things are going to well - please go out and pay for advertising and stop posting ads here. I come to ZH for news and real info - in addition to some seriously funny commentary.
For those of you who are interested (anyone...anyone at all?) you can go to the firm's Website and sign up to receive them -- just supply your contact information. You can then welcome this rubbish and surely other marketing onslaughts...directly via your in-box.
My free prediction for the remainder of the year (free of charge and no newsletter or service to sell): I will continue to stock up on food and other goods, guns & bullets, items to barter (all "just in case and because I have a family to care for) but in the meantime I"ll continue to do the usual while keeping an eye on things - and when 5:00 comes (okay, slightly earlier) I predict Happy Hour will arrive. I also predict that I will not click on these "guest post" ads again...not even for the amusement.
FILL IN THE BLANK:
What do Chicken Little, a broken clock and Graham all have in common? They all ____________________
Oh no! Sell everything especially Gold and Silver and Oil and don't forget Food, and buy Treasuries, the only safe haven in the world, and it even pays interest. What a bunch of morons.
do you guys think i should knock out my kids christmas shopping now?
Sell your kids now. Cut out the middleman.
http://www.youtube.com/watch?v=KRJKOtM-onM
cue peace frog...."blood in the streets"
Timing is everything, I called this in 1913, I was just a little early.
".....We're going to be seeing Market Crashes, Bank holidays, riots, food shortages, and more in the coming months".
Which months? This year's remaining ones, 2012's? 2013's 2050's?
Inquiring minds want to kn......oh, I see. If I sign up, will you tell me which months in which year?
Yes, Graham has been perfect on market calls but somehow still needs to fleece people into his FREE newsletter so he can then scare them enough to pay for the REAL info.
what was that old johnny carson character?
held the envelope to his head....
said the answer then read the question...
oh yeah...carnac the magnificent
"I hold in my hand the envelopes. As a child of four can plainly see, these envelopes have been hermetically sealed. They've been kept in a #2 mayonnaise jar under Funk and Wagnall's porch since noon today. No one knows the contents of these envelopes, but you, in your borderline divine and mystical way, will ascertain the answers having never before seen the questions
"market crashes,bank holidays,riots,food shortages"
answer question
"when you would be allowed to collect social security under republican plans"
alternate answer
"obamas jobs bill"
Karnac
LOL, people just joking around and clowning....youll soon probably be killed by an MS 13 gang and its all just a joke still! Spectacular!
The banks givith, and the banks taketh away. When the banks give loans, the economy does great. When the banks withhold loans, the economy remains weak. All this QE did nothing to guarantee loans to individuals. If it did, the economy would be on the road to recovery. They know this, but they refuse to do it because they want to keep bringing the world to its knees so they can fulfil their one currency, one world agenda.
precisely, deez nuts. & another thing, maill
bring on the 1 world gummint, i say, because then all we need is 1 revolution
duplicate post
What loans are not there?, sir. Want a house? go buy it! Fannie and Freddie have your back. Want a new car? the money is there as GM FORD HONDA NISSAN etc .... will finance you! Hell even credit cards keep getting mailed out. The problem is the people - the have maxed out their debt levels. Choking more fukking debt down their throat is NOT wealth and NOT good economics. The Great Greenspan credit to wealth illusion has come to an end.
Surely it's a hangover from probably the biggest credit expansion in history. Credit is there and probably was never cheaper. The problem is that the economy can't really take any more of it: http://bit.ly/b21Atg
The level of debt has to be brought down to a more sustainable level, only then any meaningful recovery can start. However, that means deflation, bankruptcy and restructuring of most biggest banks and outright prosecution of many on the Wall Street. It won't happen, meaning depression will only continue.
A new take on operation twist: The bankstas are leaving us to hang to TWIST in the down draft.
You know it's BAD when Fast Money has an old clip of Chubby Checker doing The Twist on their show.
You called this weeks ago.
Nice work.
Obviously, many were looking for a massive money printing.
Well fuck me dead you are a goddamn genius, Pyle.