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The Next Round of the Great Crisis is Just Around the Corner
The financial system is lurching towards the next round of the Great Crisis that began in 2007.
The 2007-2008 phase occurred when investment banks flooded the financial system with toxic derivatives. All told the derivatives market was over $1 QUADRILLION (that’s 1,000 TRILLIONS) in notional value when the crisis hit.
The Central Banks, knowing that the very banks they are meant to govern, were insolvent, began a series of emergency measures to deal with this. In the simplest form, they moved the banks’ garbage debts onto the public’s (read sovereign nations’) balance sheets.
The banks, knowing that they were given a green light, have since begun leveraging up again. Today, the financial system’s leverage is in fact even greater than it was in 2007.
Moreover, this time around, entire countries are on the verge of being bankrupt.
Consider Japan.
Japan is the third largest economy in the world. And the Bank of Japan is buying ALL of its debt issuance. This is precisely what triggered Germany’s Weimar Hyperinflation. The Japanese Bond market has become in the words of a financial insider “a giant Ponzi scheme”
We all know how Ponzi schemes end. They implode. Japan is on the verge of this.
In Europe, we already know the economy is in tatters. Italy is back in recession for the third time since 2008. Germany’s economy contracted in the second quarter of 2014 and will likely be in recession before the first quarter of 2015. France has registered zero growth for six months now.
Things are heating up on the political front as well. Separatist movements are rapidly growing in Spain, Italy, Belgium, and even France. Small wonder when even the individual Central Banks for the EU are fed up with the European Central Bank and its policies.
Then there is the US.
While the US in no better shape than Japan or Europe, the fact remains that our economy is almost flat-lining. The “official” data claims we’re in good shape as far as unemployment, but we all know that the “official” data is a work of fiction.
Moreover, we’re now sitting on the biggest stock market bubble of all time. By some measures, stocks are MORE overvalued today than they were in 2000. Small wonder than corporate insiders (the folks who know more about their companies’ growth prospects than anyone) are dumping shares at a pace not seen since the peak of the Tech Bubble.
On top of this:
1. Corporate debt is back to 2007 PEAK levels.
2. Stock buybacks are back to 2007 PEAK levels.
3. Investor bullishness is back to 2007 PEAK levels.
4. Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.
5. Numerous investment legends have warned of a coming crash.
6. Investor complacency is at a record LOW.
Between the US, Europe, and Japan, you’ve got over 50% of the world’s GDP in recession or approaching it. And this is happening at a time when the financial system is in an epic bubble.
Buckle up, it’s coming.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
You can pick up a FREE copy at:
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
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Phoenix Capital wrote: "The 2007-2008 phase occurred when investment banks flooded the financial system with toxic derivatives."
100% FALSE, it was securitized bad mortgages - STOP READING AT THE BEGINNING.
Do you have humans writing this garbage or is it computer generated random crap ?
To Phoenix Capital Research:
If you keep ranting this immanent-total-collapse crap, eventually an asteroid will collide with earth and your prediction will come true !
Next Round? WTF? Is this a boxing match or a Friday The 13th. series? Sequel after sequel after ad nauseum.. pull the fucking plug on this bitch already!
Shouldn't the posts be:
2010: Financial collapse in 3 months
2011: Financial collapse in 3 months
2012: Financial collapse in 3 months
2013: Financial collapse in 3 months
2014: Financial collapse in 3 months
2015: Financial collapse in 3 months
2016: Financial collapse in 3 months... hey, the market was off for the year.
timing is a bitch. sat in the woods for 5 days and never saw a deer. saw their tracks though, ha...
I think Graham Summers is right. We are up artificially up on ZIRPgoing on six years. Why hasn't the economy expanded? It's not if but when the equities top out and enter a bear market. Fincianal engineering is not the answer to a thriving economy but growth is and not present at this time. Good trading all!
WTF is just around the corner?
The yen worked lower again today and finished on its bottom. While the RSI is very low my experience has been this can go on for a long time and if panic sets in it will be followed by shock and awe. In the coming months the falling value of both the yen and euro may reek havoc through contagion. For months the major world currencies had traded in a narrow range allowing people to think we were on sound footing as central banks across the world continued to print and pump out money looking for growth that always appears to be just around the corner.
Recently several major currencies made multi-year highs or lows depending on the match-up. Because of weak demand for goods most of this freshly printed money has flowed into intangible investments Inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market could drop like a stone due to contagion.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-wild.html
Jpy at 350? Listen and learn. More to life than owning some apartments.
http://www.zerohedge.com/news/2013-12-05/kyle-bass-warns-when-everyone-b...
I think we have a few more, "Just over the next hill" 's to go. Look to Japan regarding how far QE in the states has to go; years.
So there are two possibly outcomes that I see,
1- Things start to come undone, the central banks frantically print more money as they dump gold causing e-minis go to the moon and gold to go back below 500.
2- Things manage to hold together and the economy accelerates to escape velocity taking the e-minis to the moon and causing people to dump gold as it does nothing but sit there and take up space, this drives it back below 500.
In conclusion, sell gold buy stawks; am i missing something?
No man. Shits so easy lever long and never work again. You got it figured out.
...and the mess monster rises like a Phoenix from the ashes of the last debacle. These conflagrations will only increase in frequency and intensity until a profound reset occurs. (read bloodletting)... Travel will be restricted when TSTF. Get to where you plan to ride this out as soon as you can... Good luck and Dog help us all. <<<sorry, I'm dyslexic.
;-D
Yep, sometime the real shitstorm hits....tomorrow or next months or in a couple years, no one knows, but rest assured we'll all be fucked over big time.
I'm thankful for all of the time I get to further prepare.
Japan, the "investment grade" Ponzi scheme.
WHEEEEE....................
This post is as stale as un unemployed pole-dancer's crotch.
When Phoenix Capital capitulates, I know we hit the top.
I skipped the article and went right to the comments. Piled High Capital is the most Mr Obvious of ZH Doom Porn.
The doctor said it would kill me, but he didn't say when.
You've been saying this for years.
The gubmint is not worried. If things start to get bad the Fed will print another $4 trillion, hand it to the filthy rich, and come up with the statistics to show that the stimulus is working. If that doesn't work ...
Yes, he has and I agree it tends to get pretty annoying. But Kuroda's latest move could mean things are really heating up now. Maybe Kyle Bass will finally be able to cash in his chips.
i think that even the above-average awakened people out there still have a problem with grasping the enorimity of the global fiat/banking system and as such a montrous behemoth, action is slower than what we perceive it should be on a personal, human scale. can you mind actually fully grasp 1 quadrillion? mine can't.
Six quadrillion gallons of water in the Great Lakes.
And that's just lake Michigan. Surfs up big time tonight btw.
Its easy to grasp the answer though.
buy gold or similar, buy guns, buy ammo, buy food
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