Seriously Folks, This is the Great Collapse

Phoenix Capital Research's picture


Stocks have now begun to confirm what the credit and bond markets have been telling us for weeks: that we are in a full-scale Crisis and going to new lows.


This process will not happen all at once. Remember, the S&P 500 didn’t hit its low for the first round of the Crisis until almost six months after Lehman Brothers went under. 


So the markets are not going to suddenly go to 500 on the S&P 500 in one day. Instead it’s going to be similar action to what we’ve already seen: sharp violent sell-offs followed by snap-back rallies.


However, the fact that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble… combined with the $600+ TRILLION in derivatives floating around in the financial system… should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.


Indeed, this is the very problem with leverage: once things go against you, the selling pressure can create a death spiral as the drop in asset prices result in margin calls and redemptions which in turn beget more selling/ drops in asset prices and on and on.


However, this doesn’t mean that things will go straight down. Just as we’ve seen in the last month, there are going to see sharp snap-back rallies during the process of deleveraging and default. 


Indeed, during the 2008 Collapse we saw rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.


However, the fact remains that we are going down, down, DOWN over the coming months.  We're going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.


Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke.


If you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).


And if you’re looking for specific ideas to profit from this mess, mr 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: 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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bid the soldiers shoot's picture

A broken collapse is right twice a day.

AldousHuxley's picture

I guess Greek origin olive oils will be on sale.

maybe also feta cheese as well.

overmedicatedundersexed's picture

treason for the greater good..usually those who are benefiting find some way to justify the crime..we killed American jobs for the worlds poor..because we were smart enough to gain on it is not our problem ..

we are just better than the lazy fucks on main street usa.

at some point justice is wrong but it  also grinds very fine and the black swan is "Americans" not the third world dregs- will come together and then hell comes to breakfast.

creviceCaress's picture

going over the top?


selling america short......?


that pg-rated scenario will play out at some point in time in the next 0-15 years, i think most people here could agree.  the ones here who arent mental midgets, that is.  however, one thing to consider is that the longer its keeps at bay, the harsher the swing to come..... on many fronts/points/scenarios

america to "lead the world out of this growing shithole".........are you for real?  im honestly curious! id love to actually know, alas this being the intarneats ......i shouldnt be shocked, i run into people like this all the time. 

the cast is set, the die in place;  int'l/american incident + pre-election timeframe = king obama. long live the king.

nationalism is a disease.


Elmer Fudd's picture

Buy a farm! 

But make sure you have a good tractor, oh and hardworking laborers that are willing to break their backs for a third-world payscale. 

Or you could just be some rich wallstreeter and do your farm organic!

peak experience's picture

Faber, the grizzled doomer with far more credibility in economics than most of these self-inflated bozos, is diversified: gold, equities, real estate in Asia, cash and corporate bonds.

AldousHuxley's picture

The good news—and the bad news—for America is that the nation’s own super-elite is rapidly adjusting to this more global perspective. The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,” the CEO recalled.

I heard a similar sentiment from the Taiwanese-born, 30-something CFO of a U.S. Internet company. A gentle, unpretentious man who went from public school to Harvard, he’s nonetheless not terribly sympathetic to the complaints of the American middle class. “We demand a higher paycheck than the rest of the world,” he told me. “So if you’re going to demand 10 times the paycheck, you need to deliver 10 times the value. It sounds harsh, but maybe people in the middle class need to decide to take a pay cut.”…

When I asked one of Wall Street’s most successful investment-bank CEOs if he felt guilty for his firm’s role in creating the financial crisis, he told me with evident sincerity that he did not. The real culprit, he explained, was his feckless cousin, who owned three cars and a home he could not afford. One of America’s top hedge-fund managers made a near-identical case to me—though this time the offenders were his in-laws and their subprime mortgage. And a private-equity baron who divides his time between New York and Palm Beach pinned blame for the collapse on a favorite golf caddy in Arizona, who had bought three condos as investment properties at the height of the bubble.

It is this not-our-fault mentality that accounts for the plutocrats’ profound sense of victimization in the Obama era…Yet many of America’s financial giants consider themselves under siege from the Obama administration—in some cases almost literally. Last summer, for example, Blackstone’s Schwarzman caused an uproar when he said an Obama proposal to raise taxes on private-equity-firm compensation—by treating “carried interest” as ordinary income—was “like when Hitler invaded Poland in 1939.”….

A Wall Street investor who is a passionate Democrat recounted to me his bitter exchange with a Democratic leader in Congress who is involved in the tax-reform effort. “Screw you,” he told the lawmaker. “Even if you change the legislation, the government won’t get a single penny more from me in taxes. I’ll put my money into my foundation and spend it on good causes. My money isn’t going to be wasted in your deficit sinkhole.”

Bananamerican's picture

"one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,”

Yea, they're doing it "for the people"

"imagine there's no countries"-David H. Koch

MGA_1's picture

Get our Mayan calendars out !

zeroman's picture


High Plains Drifter's picture

i have heard this many times the last several years.  yelling fire in the theatre again...........

Money 4 Nothing's picture

I'm not yelling fire in a crowded movie theater, I'm just publicly pointing out to the movie ticket holders that the sprinkler system has been sabotaged. May not want to stay and watch the show, that's all.

What was that saying last week about the Euro? It's a House on fire and the doors are bared? That's fleshing out right now.


The Bad Guy..

AldousHuxley's picture

Mayans sure knew  a lot about pyramids....schemes.



akak's picture

And about the fine art of ripping open the chests of their living human sacrificial victims with obsidian knives, before tossing their hearts onto burning braziers even as they still beat.

Ah, the good ol' days. 

Gimme that old time religion!

AGuy's picture

"Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke."


Bernanke will start printing a lot again as soon as things get bad. The Author assumes that the Fed won't step in once again to stop Deflation. I think there is a high probility of QE3 before Janurary (depends on how far and how fast the US economy falls).



Dr. Engali's picture

Seriously this time I mean it. This is it. Seriously.

Lester's picture

See Laurence Kotlikoff's article of 8/10 where he identifies actual Federal Debt & Legacy obligations at $208 Trillion dollars.

There is no more capacity within the U.S.  All has been dismantled or shipped abroad.  Our Nation has been Betrayed and Defrauded through facilitation of our elected officials and legislators.

What was done to US was done with deliberate malice and intent to murder.  Not enough resources remain available, much less in inventory, in the short-run to make a decent effort at a systemic recovery.  When Pearl Harbor happened, America had steel mills, production, mining, timber, trained machinists and labor by the millions.  Legislative effort of the last 30 years has decimated our capacity and brought us to ruin.

Like the assholes who used all their assets to pay off debt, but failed to make any preparations for their families.  It won't comfort your family to know they are dying of starvation in a paid-off home, when daddy could've bought food and supplies to see them through...

It won't take years or months.  You will see this collapse must manifest into chaos and anarchy to enable agents and provocateurs of TPTB to cover the audit trails and conceal the culpability.  If such does not occur, TPTB will lose all as will all their minions...  Don't figure them to be stupid enough to fail to see the obvious.

Self-sufficiency comes down to staying Warm, Dry, Hydrated, Fed, and Capable of Self-Defense.  It is time to be relocated out of the line of fire if you have the means.  Chaos and anarchy are never a conducive environment for either business or survival.

Stax Edwards's picture

Man Phoenix are you a godsend, what I can't believe is that you are selling salvation so cheap! 

And being able to pin down that it will be 4x worse than 2008?  OMG, the precision you have is simply remarkable.  BTW you are my favorite ZH contributor!!!!

Mr.Sono's picture

they way i see it is, its not a collapse but a rebirth of a great nation.

LynRobison's picture

We all know that the system is going to crash. However, I have been amazed at the cabal's power to steady the table upon which this house of cards is standing, every time it starts to shake. Check out James Turk's interview of James McShirley at: There has been a repeating pattern for the past 10 years, in which the dow rarely drops more than a few percent in a given day. The following day, it drops maybe one percent. The following day it is steady. The following day, it goes back up. The inverse is true for gold. It is generally not allowed to rise more than two percent in a day. The following day it might go up a single percent. Then it levels off. Then it drops the next day. Hmmm. The "red flag" days are the really interesting part. Those are the days when the pattern is broken. They indicate that the cabal is loosing control. Let's see some more of that action!

theotheri's picture



Gold, the yellow metal monkey trade of the decade is heading back down down down.  What a fucking bubble.  With copper on the decline gold has nowhere to hide.

LynRobison's picture

Hey theotheri, do you ever deal with facts, or reality, or, you know, actual data?

akak's picture

Of course not!  Never bother a Keynesian with useless trivia and minutia like history or facts --- they have their THEORIES, and who are you to dare challenge them?  Why, I bet you don't even hold a PhD!

EscapeKey's picture

Hurrrrr! Because gold and copper usage overlaps.

That's expert analysis right there. The kind that takes AT LEAST 2 months of a Keynesian economics 101 course.

sIewie the pi-rat's picture

This is the end
Beautiful friend
This is the end
My only friend, the end

It hurts to set you free
But you'll never follow me
The end of laughter and soft lies
The end of nights we tried to die

This is the end

Click here for our free REPORt!!!!!

Spastica Rex's picture

Of our elaborate plans, the end.

dirtbagger's picture

I'm okay with the famine bit, as I could stand to lose a few pounds.  Not so thrilled about the frogs, flies, locusts and boils

Crisismode's picture

Mr. Summers has been predicting The End Of The World twice a week for . . . ummmm eleventy umpteen weeks now.

Unlike a clock that is right twice a day, Mr. Summers will be waiting another eleventy umpteen weeks for The End Of The World, and still not get it right.

Mr.Kowalski's picture

Benny and the Inkjets might have a few things to say before your Day of Reckoning arrives. After all, does it matter if gas and food triple in price ? After all, the serfs exist only to provide the lords with wealth and status. We'll just eat cake. 

vegas's picture

If you weren't hawking your newsletter you'd have more credibility. Fact is, I've heard this so many times before, in the last 50 years, that if I had a nickel for every time I would be Obama wealthy.

It's easy to predict the end of the world. However, wealth has to go somewhere and be in something. It can't all be in precious metals.

I remember Joe Granville's doom and gloom; the '87 crash; Dr. Doom from Salomon Brothers; Roubini et al, and I could go on but what is the point?

There are always people predicting the end of the world [financial and otherwise]. Sorry, while I generally agree with a lot of your points, the end isn't coming anytime soon.

Aeonios's picture

"It can't all be in precious metals"

Uh, yes it can? It was for hundreds (if not a thousand or three) of years long before FDR and Nixon.

And today we have the technology to create 99.99% pure product, the technology to mint accurate 1 gram coins (and potentially as small as .01 gram plastic-protected chips) and the scientific know-how to measure that there exist 18.75 grams of silver in the earth's crust for every 1 gram of gold.

I could go on quite a bit about how the above facts could be used to create a monetary revolution, but I'll sum it up by saying "think before you speak".

geekgrrl's picture

"the scientific know-how to measure that there exist 18.75 grams of silver in the earth's crust for every 1 gram of gold."

I'm calling bullshit. Linky please.

Spastica Rex's picture

Why not? You got a crystal ball? Too?

akak's picture

Maybe not "the end" .... but for sure a WHOLE lot of shit.

By 1996 or 2005 standards, our economy, financial and monetary systems have ALREADY experienced "the end of the world" --- an end that continues, and will continue, to evolve.  So enough of your pollyannish rainbows-and-lollipops viewed through rose-colored glasses; our economy, our political systems, our freedoms, our society, and our very civilization are all in a downward spiral from which they will soon not recover.

Vendetta's picture

Its not as bad as being on the receiving end of Vlad the Impalers reign of terror

Crisismode's picture

A WHOLE lot of shit has been happening to humankind every single day since our ancestor apes dropped down out of the trees.

EVERY generation since has experienced a WHOLE lot of shit -- famines, wars, plagues, mass starvation, slavery, terrorism, barbarism, pandemics, etc., etc., etc., etc., etc.

THIS generation hasn't experienced SHIT compared to many, many hundreds of generations before us, and many hundreds of others that will come later.

Get over your angst.





akak's picture

That little specious diatribe of yours is nothing but disingenuous and meaningless babble.

Our economies, our collapsing monetary and financial systems, the fragile and farcical political environment, are all going to get worse, WORSE, significantly worse than they are today, and will likely remain so for quite a few years, devastating the average person's freedoms and standard of living in the process.  Life ahead is going to be MUCH harder for the average American or European than it has been for the past several decades.

Is that clear enough for you?

Go sell your rainbows and lollipops to the mainstream media parrots, because very few are buying such ridiculous propaganda and lies here.


PS: I guess we have a new crop of trolls on this site --- but instead of attacking gold, or silver, or financial and monetary truth-tellers, they are more broadly trying to perpetuate the lie that "All is well, nothing to see here, go back to sleep and consuming and holding US dollars".  How pathetic to be either a useful idiot for the status-quo, or a sellout Quisling collaborator with it.

geekgrrl's picture

Haha. The trolls that ran the cornucopian spiel were well known in peak oil forums. They weren't very effective and most peak oilers aren't buying it, so I guess they moved over to finance.

EscapeKey's picture

JPM just paid the NYPD a grab in the pocket to arrest peasants for them, so is it that much of a stretch to believe they leave someone a tip, to "manage" public impression of them doing God's work?

akak's picture

Not much of a stretch at all --- in fact, one would have to be hopelessly naive to believe that such does NOT routinely occur.  And don't forget Cass Sunstein and his many pro-Establishment minions, spreading "the truth" via their surreptitious online activities and forum infiltrations.

jomama's picture

let me guess, it's FOR REALS THIS TIME!!!  


Money 4 Nothing's picture

Cramer said this isn't 2008 so your wrong mister.

High Plains Drifter's picture

yep he said that this morning. ladies and gentlemen, this is not 2008 morgan buy buy...............there is a bull market somewhere.......

navy62802's picture

Cramer may have accidentally gotten something right. It isn't 2008. It's 2011 ... and we are on the cusp of something much, much worse than what we had in 2008.

akak's picture

His wrong mister .... what?

Rainman's picture, and the pension funds would never tolerate such treason.....unless they're slowly moving out the door already.   

New American Revolution's picture

O.K.   Enough of the lighter side.    What's your worse case?   Food shortages?   In America?    I think your going over the top on this, sure things are going to go to shit in a big way, but I think,... I KNOW, you're short selling America too much and I think your making a mistake with the shrill of your chicken little, the sky is falling.    No doubt the world is in trouble, but here in America, it is opportunity time to force the turn around and lead the world out of this growing shit hole.    God knows everyone is ready for a reformation in America, including Americans.   

So now you've had your churn to burn, but you need to prepare to get your head straight, because America is going to come out of this mess stronger than before.   And this time, in the hands of all Americans.   Get ready for the revolution, and make it work for America.

Alea Iactaest's picture

$14.8 Tn in debt? Now repeat after me:


We're #1!


We're #1!


We're #1!