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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.
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finally it looks like you could be right at last Graham
I couldn't wait for the inevitable any longer but fianlly maths and common sense is prevailing
Keynesian economics hopefully will die a death here along with the FED and peoplelike Krugman
Oh shut up, go away and take your stupid unending spam with you.
Caught ya all-in on the surefire moneyprint-fest huh?
Did the FED just throw in the towel? I guess the reserve status of the dollar is worth something to them aferall
I dont think they decided to worship the dollar suddenly, I just think the FED is whipped! Kicked their own ass in their own game.
Only in public I think...behind the scenes is another matter entirely.
They can (in theory) digitally EBT anyone on the face of the planet because it all comes from a unicorns ass anyways...lol...there is nothing supporting it.
Pretty scary thought....EBT activations are the ONLY thing keeping this country NOT looking like the streets of Syria.
From India, today...
PTI | Sep 22, 2011, 06.26PM IST MUMBAI: Stock markets turned a sea of red today, with the BSE Sensex plunging the most in 26 months -- down 704 points to 16361.15 -- as investors dumped equities globally on US Fed warning on the American economy
There you go. No link, just pure, unadulterated coninkydink!
ORI
Help us Bennie, we're sinking fast.
The Fed can't do dick to truly help. It can only postpone. And with greater pain. The time has FINALLY arrived.......maybe.
The irony is that since Ben had created the false image that he's the all-powerful Wizard Of Oz and would always seek to positively surprise 'the market', by simply not surprising the fiat money whores on Wall Street, he disappoints. Model those 'rational expectations' you foolish, arrogant academician.
BTW, note how the current dramatic plunge comes just after the DJ Composite retested the 4K mark.
So much for 'weak-form market efficiency'.
ZH often seems like a congregation of the converted. Anyone who disagrees or questions the market-crash-dollar-is-dead-gold-to-5000 orthodoxy is blasted on this site. The comments are often predictable. Of course, there are some very insightful points made, but the overwhelming herd of bears, regurgitating their fiat collapse dogma seems shallow and lazy. When I see people predict with certainty exactly how the collapse is going to happen, and no one challenges them (or if they do, they are shouted down by the faithful) I get very suspicious.
I, for one, appreciate differing opinions and constructive debate. Most ZHers slam mainstream media for their constant optimistic outlook, but ZH is the antithesis of mainstream media; it's always the end around here. The aggregate IQ has dropped significantly over the last two years. Take everything with a grain of salt and form your own opinions.
Joe, you are right but, that is the nature of the beast. There really aren't any "totally balanced" news sources anywhere on the planet Earth. ZH tends to be occupied by guys of a similar mind set, kind of an "anti-Wall Street" view. If you want a balanced point of view you go to this site for one view and one of the "pro-Wall Street" sites for another.
The truth is you can get better financial commentatry at your local cowboy bar; the author is a wing-nut. Bought Dec. Si. today at $36.74;4;03hst; S&P500 @1128 DEC/3.59am/ and POT @$46.68 3.49am.
still buying dips?? how's that 'up $12,000 on SPY' trade working for ya??? lmfao! this friday's close still higher than last friday??? what a fucking call genius.
keep buying those dips! never can have too many bagholders.
There's no place like home! There's no place like home!...these fucking Chinese made "Ruby" slippers must be made of lead crystal!