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Stocks Collapse, 2yr @Record Low, Rating Agencies Opinion Irrelavent as Global Capital Jumps from Ponzi Scheme to Ponzi Scheme

Submitted by Reggie Middleton on 08/04/2011 16:58 -0400

Bloomberg reports Stocks Tumble Two-Year Yield Drops to Record Low. It looks as if the short to medium term goals of Geithner and Bernanke may have paid off as the world's capital runs from one Ponzi scheme to another - exactly as I anticipated.

Go to 21:00 in the video below. Bernanke strategy all along

Reference Do Black Swans Really Matter? Not As Much as ...

I have always been of the contention that the 2008 market crash was cut short by the global machinations of a cadre of central bankers intent on somehow rewriting the rules of economics, investment physics and global finance. They became the buyers of last resort, then consequently the buyers of only resort while at the same time flooding the world with liquidity and guarantees. These central bankers and the countries they allegedly strive to serve took on the debt and nigh worthless assets of the private sector who threw prudence through the window during the “Peak” phase of the circle of economic life, and engaged in rampant speculation. Click to enlarge to print quality…

The result of this “Great Global Macro Experiment” is a market crash that never completed. BoomBustBlog subscribers should reference The Inevitability of Another Bank Crisis while non-subscribers should see Is Another Banking Crisis Inevitable? as well as The True Cause Of The 2008 Market Crash Looks Like Its About To Rear Its Ugly Head Again, With A Vengeance.

Here's how to play it via options -Game Over For The European Ponzi Scheme?…

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Thu, 08/04/2011 - 21:52 | 1525339 disabledvet

without the real estate ponzi they don't know what to do. they never really have actually because the fundamental belief that "the market is rigged" is what in actuality the masses believe. "the new normal" is in fact "the old normal" of treasuries. by no means am i turning bearish actually. having said that if you haven't gottent the gold message by now there's really no hope for you.

Thu, 08/04/2011 - 21:45 | 1525314 Buck Johnson

And this ponzi scheme is collapsing as we speak. And remember we have tomorrows horrible job numbers coming out also, so that will add more fuel to the fire.

Thu, 08/04/2011 - 21:41 | 1525306 adr

Ahhahahahhhh

Priceline is up $47 in after hours trading. What friggin BS.

I really want to see the books of these corporations. They are filled with about as much truth as Snow White and the Seven Dwarfs.

We could have a 1200 point up day tomorrow if the jobs number comes in remotely close to expectations. How much do you want to bet that the number is being fudged as much as possible to make that happen.

Perhaps we get Netflix up $200? Why the hell not? Linked-In hittin $300 a share, why the hell not if Chipotle can be there.

The only solution is turning the entire thing off. The market means nothing. CNBC even said so today when one of the talking heads said that Wall Street is not the real economy.

Thu, 08/04/2011 - 21:55 | 1525342 disabledvet

and this is what you don't understand. the irony is we're in the very beginnings of one of the greatest wealth engines in human history. of course there was a similar occurence believe it or not during the Depression vis a vis the electrical grid, the automobile and radio.

Thu, 08/04/2011 - 21:29 | 1525280 adr

So what? The market is down 10% but stocks like Chipotle are only off a few bucks and is still trading at $313.00 with it's insane P/E. Linked-in is trading over $100 again.

QE1 and 2 doubled and tripled the values of so many stocks that we need a total collapse losing $100s of dollars per share just to get back to reasonable valuations.

Netflix needs to drop to somewhere around $50 to make me a buyer. The great Ponzi has made people believe that corporations with extremely poor business models run by idiots are somehow worth billion dollar valuations.

This sell-off means nothing, absolutely nothing. Someone who bought just about any BS momentum stock in 2010 can sell off their shares for double what they paid. Sorry my friends but that is not the definition of a market in crisis.

Thu, 08/04/2011 - 20:55 | 1525191 Downtoolong

We've had big down days in the stock market before. But, nothing makes this one more different in my mind than to see almost all the money running into U.S. Treasurys, just days after we proved how vulnerable they are to a credit downgrade. That's desperation baby.

Thu, 08/04/2011 - 21:14 | 1525247 cocoablini

In the kingdom of the blind, the one-eyed man is king.
Usd and treasuries are super, super fugly but they are the senior instruments. Which is why the whole world hates us as we abuse the priviledge.
The banking cartel need to get into liquidity fast, after being lulled by endless FED intervention- run to cash! Leveraged stupidity back to high levels and Japan and Swiss slammed dollar shorts and borrowers with intervention.
Reggie is spot on - knows how its going to roll. Badly

Thu, 08/04/2011 - 20:47 | 1525182 anony

".....private sector who threw prudence through the window during the “Peak” phase of the circle of economic life, and engaged in rampant speculation.......

How diplomatic of you to call Rolling dice, speculation.

As it turned out, for them at least, their gamble which should have Lord Blankfein and joe Cassano living in cardboard boxes in the Bowery, they got paid off in trillions of dollars in guarantees, bonuses, and cheap trick .25% borrowings that they lend back for a quick 2% turnaround.

That's not speculation by any means. In most countries with a justice system that's grounds for getting your heads chopped off, with extreme prejudice.

Thu, 08/04/2011 - 19:49 | 1525039 11b40