Guest Post: The 3 Rising Risks To The Markets

Tyler Durden's picture

Submitted by Lance Roberts of STA Wealth Management,


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LetThemEatRand's picture

4) The entire global economy is a fraud designed to make bankers rich while the middle class is gutted and turned into a bunch of boot licking serfs.  But then again I guess that's apparently good for markets, so nevermind.

centerline's picture

lol - just talking about the markets as if they are not already terminally broken is laughable.

NotApplicable's picture

Exactly why I skipped the article and came directly down here to the comments.

Cult_of_Reason's picture

5) Mr. Henry was ordered (by WH) to allow the markets to drop naturally without NY Fed levitational manipulations (to pressure the Republicans to cave in).

Manthong's picture

I like to think of it more like the detachment between underlying fundamentals and the purposeful change to criminally initiated fraud.

Hundreds of billions if not trillions have been defrauded from people who did not realize that the real market was taken over and turned into a mob run casino where every card game and machine is rigged to swindle “investors”.

Cult_of_Reason's picture

If they are caught (exposed) with her pants down, their excuse will be "we did it FOR THE GOOD OF THE COUNTRY."

involuntarilybirthed's picture

The central bankers are the global economy, they have taken control of it.  Governments are their subsidiaries.   Why no legislation will impact them and TBTF is true.   Agree with the rest.



Wyatt Junker's picture

Forgot to mention 4) Piehole Alert.

Nothing better than watching President Cakehole In Chief speaking while the market bleeds out its confidence on the altar of his Marsha Brady-like ego.

El Oregonian's picture

85 Billion will equal 85 Trillion in the new post economy. Just add another couple of  zero's to your money. THERE, FIXED!!!

the grateful unemployed's picture

the real danger to the market is that bernanke has no reason to get out of bed in the morning and misallocate capital

polo007's picture

Ready for QE Five? - It's Already Here

The sad truth is that the primary function of the Fed and Treasury has now become the sustention and expansion of disastrous asset bubbles. In fact, while Mr. Bernanke officially acknowledges QEs one through three, the truth is he has embarked on QE V. What's QE five all about? Putting a lid on U.S. Treasury yields.

The reason for this is our anemic economic recovery has been predicated upon artificially boosting consumption, which is 70% of US GDP. That consumption is, in turn, predicated on borrowing; because we don't have any real income growth on the part of the consumer. The borrowing has been predicated on government's ability to build upon the asset bubbles in stocks, bonds and real estate. And the creator of all these bubbles is our central bank, which is the progenitor of this deadly-addictive cycle. The Fed does this by providing ultra-low interest rates and through the massive monetization of government debt.

To prove we have learned nothing from the previous Great Recession; we now have a situation where the FHA will most likely need a $1 billion bailout for the first time in its 79 year history. But why do taxpayers have to bail out the FHA, which provides insurance to lenders such as banks and other financial institutions? The reason is because our government has once again compelled lenders to make loans with next to nothing for a down payment, to individuals who can not afford to purchase a home--doesn't this all sound chillingly familiar? Therefore, we have subjected ourselves to yet another bubble in housing, where home prices are once again rising at double-digit rates and marginal home owners are just a few points higher in interest rates from foreclosure.

It's not just house prices which are in back in a bubble. Stock prices are also growing at double-digit annual rates. These double-digit gains in stocks are taking place in an environment of little earnings and revenue growth. Meanwhile, Treasury bonds offer only half of their average yields going back over 40 years. So, for the first time in our lives we have three bubbles that exist together -- equities, bonds and real estate. But the real catastrophe this time is that these bubbles will become exponentially larger than previous episodes. Therefore, when they burst the devastation will be many times worse.

Theosebes Goodfellow's picture

This is very much a "can't see the forest for the trees" scenario. Barack Hussein Obama, aka Barry Soetoro, was and is a devote follower of Sal Alinsky. Alinsky was for taking down the government from the inside to be able to reestablish it to be run by socialist elites. Shutting down the government is simply one part of the plan. It is made easier with a complicit media that will surrender their supposed objectivity for becoming a propaganda tool for Obama. So let me say this clearly:


Obama/Reid/Pelosi wanted this shutdown.

Obama does not want the government to "start back up".

The shutdown is the excuse he needs to take power by executive order, and the markets, (and every one else), be damned.


The sooner we wrap our brains around that the sooner we'll be able to make the right decisions regarding the preservation of wealth in the age of illegal confiscation. (Do you really think what happened in Cyprus isn't coming to your bank?)

DrunkenMonkey's picture

Dude, everything is overvalued relative to wages.

So just buy the dip whilst they're still handing out the free cheese and get the f*ck out if they stop.