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The Unfolding Economic Disaster
It is now clear the US economy has broken down in a BIG way. Indeed, no less than Ben “green shoots” Bernanke has stated that the recovery is “close to faltering.” This, coming from a cherrleader like Bernanke is essentially an admission from the powers that be that the US economy is a disaster.
Indeed, the recent manufacturing survey just posted its second consecutive month of contraction. As ZeroHedge noted, collapse in this economic metric has been greater than any two-month period in the last ten years, including 2008.
We also see that the ISM purchasers managers’ index, the Philly Fed index, payrolls, and the ECRI weekly leading index are all at or about to break into recessionary levels.
These are, of course, mainstream indicators of economic activity, which are heavily massaged. The economic realities in the US are far worse than even they proclaim as food stamp usage (43 million a record high), the labor participation rate:
… and U6 unemployment numbers reveal:
Suffice to say, the US economy is a disaster. And yet, analysts are expecting another earnings season of double-digit growth (the eighth quarter in a row). Somehow I think we’re in for some major surprises to the downside this earnings season.
And this is coming at a time when the markets are already shows signs of MAJOR duress.
Indeed, I truly cannot stress enough how dangerous things are right now. This is the most dangerous market I’ve ever seen. We’re seeing moves of 4-% in just HOURS, not even days.
And considering 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.
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).
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Good Investing!
Graham Summers
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Can I do this with no money down?
Haven't I read this article before like say twenty others times about how economic collapse and food shortages ARE COMING ANY DAY NOW!!!!!!!
It's about as repetitive as the blaming the jews in the comments which are apparently required on every article.
There is no harm in prepping. If it turns out to be nothing more than chicken little hysteria you can sell the PMs and guns. And you can eat the food. You lose nothing. And stand to gain a great deal.
at some point, the crash will arrive. This fall and winter will be about working on solutions - post crash. There are many people jumping on the contraian bear train now, but few were there just a few months ago and fewer still in 2009-2010.
Now that it has become obvious that the markets are seriously borked, it is essential to begin to make preparations for the future and that includes solutions.
Focusing on solutions, there's three major desired outcomes from OWS (different people may have a different short list but this is mine):
1) End the Federal Reserve and fractional banking system.
2) Disinsinuate Wall Street from the political system, at all three levels of goverment.
3) Last but not least put constraints around imperial war fighting policy that allows the preseident to go bomb who he wants whenever he wants without an act of Congress.
Each item above would require a ConCon. And if even one of the above goals were achieved and ratified (crash or no crash) I would tout it as a major success. I just found a CNN poll with, +/-3% margin of error, that shows that 70% of Americans are opposed to the war in Iraq and 75% want immediate withdrawl. So from a populist standpoint, there is sufficient numbers to make it happen. Provided, that is, that govt adequately represents the will of the people, and there's the rub.
As far as preparing for the inevitable crash, which I agree is coming, I think it's feasible for just about everyone to go get a 2 weeks supply of food. You can do that tonight by purchasing canned goods at your local CVS pharmacy or Safeway. Then, you'd gradually want to build this up to about 3 months supply, which can be done economically by storing 25lb bags of rice and beans that are available at Costco. Keep some cash on hand and stockpile some PMs, guns and ammo but don't tell anyone you are doing it--not your neighbors, friends, family, no one. Also, you don't need to be a nut with 1000s of rounds of ammunition. A couple boxes of shotgun shells (buckshot and slugs) and/or a couple boxes of handgun ammo is all you need--you're not fighting a war so get real. Bunkers and major SHTF prep is beyond the range of most people, however, a home and car BOB is not a bad idea--you can create a good one for around $100. My 2 cents.
Nice comment. I'll keep mine simple and yet say much the same thing;
RON PAUL 2012.
It's all about jobs. The reason you can have double digit earnings while the economy gets worse and more people stand in the unemployment line is because of the passage of unfair "free trade" agreements like NAFTA, GATT, et al. Pushing factories and jobs overseas is great for corporate earnings. Not so great for the American worker. This will not change until those jobs are brought back to America. It won't change until we protect our borders and repatriate the 30 some odd million illegal aliens now working here and driving down wages back to their country of origin. This isn't rocket science. "(UN)Free Trade" is not capitalism. It's economic sabotage. And all that it has accomplished is allowing banksters to buy another house in the Hamptons, or a new pink yacht. 1993. That was the year Clinton signed NAFTA into law. And it has been downhill ever since. I know. I saw it working for a large software corporation. Every year more bench strength sent over to Beijing, Shanghai, Singapore, Bangalore and Mumbai. Each year the remaining American workers asked to do more and more tasks with paltry wage increases until they finally resgined out of frustration (which was the business plan all along). Caterpillar, Boeing, John Deere, Harley Davidson, GE, and last but not least Apple (with its Foxconn suicide nets - how compassionate) now make their products using slave labor in foreign countries. All that's left over here is the paper pushers, i.e., project managers, program managers, business analysts, mid-level executives, and of course the C-Suite parasites.
They will just manipulate earnings as usual to 'beat' estimates that have gradually been lowered on the the QT but then raise them on results boosting share prices until just before the next lot of con numbers
same old same old, what a stupid con this 'expectations' lark!
why not just state much more simple figures without the extraordinaries which happen every year
another ominous warning from "Chicken Little Capital Research"
You're preaching to the choir here. We know it's bad, but they can play this game a lot longer. I say just keep stacking.
Reading this is like watching the latest episode of "Jersey Shore" or "Real Housewives of <pick a location".
Drama, drama, drama!
The market turns up here for several more months at the least before the crash resumes.
That's exactly what I said in the last quarter of 2007. When this mess blows, it will be spectacular. Add to this the continuing war against private ownership of property, and we are looking at an implosion. Agents have been sent forth to devour all of the people's substance. It is Federal open season on all of us.
http://georgesblogforum.wordpress.com/2011/10/07/legal-reality-newslette...
Dear Mr. Summers:
"Good Investing"? Did you even read your post? Really?
How about: Hide and bury what you don't want to lose.
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is everyone here forced to read his articles? guess he's not allowed to earn a living? how many on this blog click on tyler's ads? do you all say the same regarding bob chapman's blog? well do you? well?
If it is only now becoming clear to you that the economy is a disaster, then you really shouldn't be giving out investment advice.
You should resign, find another line of wor......nevermind.
dont forget a few mossad false flag distractions to kick off ww3.
Israel's Mossad: Black Ops and False Flags
Yeah, it's all the fault of the Joooos. Eat sh!t and die Mofo.
you are jew right ?
Or you could just read my take on things without having to subscribe to anything!
DoChenRollingBearing takes advantage of other people pushing their stuff, to do the same!
Curious? gmail me at my name and assure me you will behave and I will send you the link (my blog is not Fight Club). 220 + ZH-ers can't be wrong!
Hope & Change. ZH has a few D*** S******g Dems who love Hussein's ACORN-SEIU goons in the parks being slackers.
So is this really it this time? Because it certainly wasn't the last time you called it. Nor the time before that,or the time before that. And so on and so on. Eventually if you keep calling it we might have that 'great market crash". Or maybe it will be a slow methodical step by step downwards.
he says currencies will collapse but he wants money?
Big difference between "will collapse" and "have collapsed." I still accept currency, too- but then I use it to buy survival gear, food and PMs.
That being said, I am a little underwhelmed by the free reports, which cost a lot in term of spam, and will not be participating.
Free? As in speech, or as in beer?