9 Signs That 2016 Looks Ominously Like 2008 (Just Before The Crisis)
Submitted by Simon Black via SovereignMan.com,
If you haven’t seen the 2015 Best Picture nominee, The Big Short, I strongly recommend it.
The Big Short is based on Michael Lewis’ book which examines how such an extraordinary financial crisis gripped the world in 2008, and the handful of people who saw it coming.
The movie opens asking a very simple question about the global financial meltdown:
Wall Street missed it; the Federal Reserve missed it; the government missed it; every major financial institution missed it; the homebuilders missed it.
So how is it that a handful of people were able to see it coming? How could they see what nobody else saw?
Easy. They looked.
For anyone who actually looked, it was obvious that the banking and housing boom in the early 2000s was built on a house of cards. The data was all there.
Given the financial establishment’s astonishingly short-term memory and capacity to make even bigger mistakes than ever before, we now find ourselves in a very similar position today.
Once again, the financial system is in desperate condition. And the data is all there for anyone who cares to look.
Let’s look at a few of the numbers together.
Back in 2008, much of the calamity was caused by an implosion of “subprime loans” in the housing market.
These were frequently no-money down loans at teaser interest rates made to people with poor credit and limited income.
Banks made these toxic loans with your money.
The best example of this was probably Johnny Moon, a homeless man with no income or employment history who was able to borrow more than $600,000 to speculate in real estate.
The total value of these subprime loans was a whopping $1.3 trillion.
Not much has changed.
In 2016, instead of loaning money to subprime home buyers, the financial system is now loaning money to bankrupt governments.
They’ve even managed to go beyond “no-money down”, and are actually paying governments to borrow money at negative interest rates.
Japan is as great example.
Even though Japan’s national debt exceeds 200% of GDP, and it takes over 25% of tax revenue just to pay interest on the debt, the Japanese government is able to borrow money for ten years at negative interest.
This means that investors are GUARANTEED to lose money. It’s worse than no money down. And it’s total madness.
The bigger issue is that the size of this bubble is an astounding $7 trillion, far bigger than the subprime bubble in 2008. And it grows larger by the day.
To expect that this will turn out any differently is foolish.
Back in 2008, US government debt was “only” $9.5 trillion. The Federal Reserve’s balance sheet was $850 billion. Interest rates were over 4%.
So at least they had some capacity to slash interest rates and fight the crisis using traditional policy tools.
Today, US government debt exceeds $19 trillion, well in excess of 100% of GDP.
They have to borrow money just to pay interest, and they have entire pension funds that are on the brink of bankruptcy.
The Federal Reserve’s balance sheet has exploded to $4.5 trillion, and interest rates are barely above zero.
The government has no means to bail anyone out, including itself. And the Fed has no capacity to print more money and expand its balance sheet without causing a major currency crisis.
Simply put, the bubble is just as insane as in 2008, but much bigger. And the financial establishment has no ammunition to fight it.
If you want a more detailed comparison of the 9 most ominous similarities between 2008 and 2016 click here to watch today’s video podcast.
I’ll even tell you about the Danish sex therapist who was actually paid interest to borrow money.
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Wow...it's 2016 and we're still on signs.
Wake me in 2020.
How many more tricks can the Fed play?
Good question, they have a lot of holes to pull things out of over there.
According to Zero Hedge, the years that have looked just like 2008 include 2009,2010,2011,2012,2013,2014,2015 and 2016.
Unlike Zero Hedge, I never confuse what I WANT to happen with what I PREDICT will happen. ZH has been permabear for most of a decade now. Even a broken clock is right eventually but who wants a broken clock?
The Fed didn't miss anything. Events leading to the GFC unfolded exactly as the banking cartel planned them, and the supporting players gave their usual impassioned performance.
yes, exactly.. it's amusing to go back through the original ZH posts from 2009 and 2010 and see the exact same articles then as now... while the SP500 roared from 700 to 1500...... for sure it can all come undone... a few volcanos, earthquakes, tsumunis or a meteor are probably more likely to be the cause than a wild financial market... another nuke meltdown, perhaps it's time for LA and San Diego to be evcauated, as San Onofre pops it's load..... great location right on the San Andreas fault line.... there's many problems, but mostly they are a distraction....
everyone even in the MSM is obssed with a crash or a raging bull.... how about we just go sideways for the year in wild volatile swings... where everyone gets culled.... that's what no one is expecting... ES 2200 to 1800 and back again every quarter....
it's more a stagnation than a real depression or collapse.... we're basically in late 70s early 80s all over again, with socialist Govts. maurading about and no real new technology... it's the technology that drives the economy, we haven't had any real ground breaking tech since about 2007.... unless you count twitter which is a useless distraction and unprofitbale....
I will be a "Bear" until the underlying problems that led to the 2008 crash (cronie capitalism, bank fraud, government debt, bad trade deals, Bloated welfare state, empire-building, Government bailouts, Derrivatives, sub-prime lending, money printing, etc...) start to be addressed.
...Hedged short-term for Bull or Bear in energy. Heavy Bear weighted in financials, realestate, oil, S&P, DOW, MCSE, Europe indexes, Small allocation for Long on 3Dprinting, Robotics, and Gold Stocks. PM's and cash on my sunken boat, Solid business with multiple clients...Virtually no debt, Income property, and close network of friends to trade with.
This must be Michael Snyder's new pseudonym
Please.
No.
The visual of Janet Yellen in a faux leather mini-skirt walking down a busy street in D.C. trying to turn tricks is just disgusting.
Janet's the manager for the pimp... the Debt-Money Monopolist pimp.
And before the ignorant start trying to claim that Debt-Money Monopolist is a euphemism for Jewish people, here are some facts that empirically prove you wrong.
1. Debt-Money Monopolist corporate front IBM supplied Hitler with the Hollerith machines that were used to track Jewish people in the concentration camps. IBM serviced these machines on premises. Did "the Jews" track themselves at the concentration camp?
2. Debt-Money Monopolist corporate front Harriman Brothers built the railroad tracks that ran right up to the gates of Auschwitz and into the camp? Did "the Jews" build the tracks that were used to enslave themselves?
3. Debt-Money Monopolist corporate front Ford motor corporation sold engines to Hitler that were used to round up Jews and take them to camps. Did "the Jews" sell engines to Hitler to round up "the Jews?"
4. Debt-Money Monopolist corporate front Standard Oil had a subsidiary that was selling a fuel that Hitler needed in order to fly his planes.
5, Debt-Money Monopolist corporate front Union Bank (here's looking at you, Prescott Bush!) was financing Hitler. Did "the Jews" finance Hitler to enslave themselves?
Simple minded parroting of Debt-Money Monopolist narratives PROTECTS THE DEBT-MONEY MONOPOLISTS (ROTHSCHILD, EUROPEAN ROYALTY, ROCKEFELLERS, ETC...) FROM SCRUTINY!
Peddling their nonsense makes you an unwitting (or demonic) actor in the Debt-Money Monopolist societal depopulation and enslavement agenda (Jews, too!).
Yes, but Jewish establishment organizations... do American establishment organizations represent Americans? Then don't be so stupid as to think Debt-Money Monopolist financed "Jewish" organizations represent Jewish people?
Do unquestioning American functionaries believe the bull fed to them by their Debt-Money Monopolist Corporate Fascist Overlords? Do you talk to people about real issues? Then you know the answer.
Do some Jewish people swallow the Debt-Money Monopolist narratives, hook, line, and sinker, just like other Americans?
You betcha!
If you aren't narrowly defining the enemy of all ordinary humans, you are a total tool of what is, or might as well be, Satan's earthly spawn... the Debt-Money Monopolist "woman" riding the government beast system that is lying to you, robbing you, enslaving you, and murdering you.
PS - Did Jewish people get a pass when their home values crashed and they lost their jobs due to the bad economy? Think it through, it is really easy to comprehend.
The Debt-Based Money Power is the enemy!
Trump Got It Right Again. This Is the Undeniable Proof...
However the mainstream media isn't saying a word about it!
http://tiny.cc/0bd69x
This is the problem... morons desire to irrationally hate on other ordinary people MORE THAN they want to defeat the Money Power perched on top of the debt-based monetary system.
You people are scarier than the Rockefellers, for they could not exist without people like you who value an emotional triviality above rooting out monstrous, even if abstract, evil.
Maybe 2-3 years playing with ngative interest rate than the Hiperinflation bubble can be like 2-3 years. And we can't see inflation hiting yet.
so i think we got like 4-6 years before collapse.
Tell us about the Danish investor who was paid money to borrow sex.
8 Signs That 2016 Looks Ominously Like 2008
6 Signs That 2016 Looks Ominously Like 2008
7 Signs That 2016 Looks Ominously Like 2008
5 Signs That 2016 Looks Ominously Like 2008
3 Signs That 2016 Looks Ominously Like 2008
0 Signs That 2016 Looks Ominously Like 2008
9 Signs That 2016 Looks Ominously Like 2008
Smells fishy.
What You Should Know About the Bumble Bee Tuna Voluntary RecallBumble Bee is voluntarily recalling certain canned tuna due to possible contamination that could lead to life-threatening illness.
https://www.yahoo.com/gma/know-bumble-bee-tuna-voluntary-recall-16582376...
The cans were glowing - hint, hint
Synder is going to be right pissed off this guy Simon is horning in on the 'list' routine.
My list is bigger than your list.
Woah, woah, ,woah; you mean making a list is not like original ideas or sumthin'?
hehe
The WOTC means that people on food stamps qualify for private sector job hires for a tax benefit. So needy people can have a leg up on people who don't leech off the system.
Sound familiar?
Didn't you write pretty much the same thing in 2015? 2014? 2013?
I quit listening to you dipsticks a long time ago...when the crash comes it will come, no sense in letting the chicken littles with delusions of being prophets get my blood pressure up.
don't mind me
i'm just here for the tits on that "news anchor" ad
Print to infinity there seems to be something about the word infinity the doomsayers dont understand ,you will have the most distorted economy imagineable and a wealth distribution similar to feudal ages but down the road the can will continue to go.
Congress has a secreat meeting in march of 2008, before the big crash. The republicans are this time
Didn't I say so? "With statistics so much in the gutter http://independenttrader.org/lies-damned-lies-and-statistics.html we should be bracing for another 2008 http://independenttrader.org/are-we-waiting-for-another-2008.html."
Oh and here is the piece WHY the ECB acts like a suicide bomber heading towards EUR and FED tries to portray themselves as saviors to USD http://independenttrader.org/the-madness-of-the-ecb.html
When the government finally admits they're bankrupt the poor will get a bag of seeds to grow things every month instead of food stamps.
Captain Donald Trump to the Rescue, just in time !
...to go down with the ship.
Institute those tariffs. Trump.
Trump plans for Tariffs...
http://www.nytimes.com/politics/first-draft/2016/01/07/donald-trump-says...
Transform America into a Third World Nation because of Foreign Nations rejecting the US Dollar in response. Who cares about having the World's Reserve Currency. The IMF needs to issue that...even though it will devastate America. Who needs those cheap foreign goods anyway? We need a LOWER STANDARD OF LIVING. We have lived off of the labors of foreign nations for far too long. Let's put OUR SERFS and Tax Slaves to work in sweatshops and pay them a sustenance wage instead.
Build that Wall to keep your Tax Slaves penned in. By all means increase restrictions on passports and free travel.
Freedom and Liberty? Who needs it?
Sanction those in courts of law who dare dissent.
Yeah.
Vote Trump 2016. ...Because America really deserves it
(The sad truth is that nobody running is any better...)
Go ahead and junk it.
The tariff plan is well documented.
It will not change anything.
Trump's myopic and xenophobic economics will lead to the death of us all.
Trade Wars turn into Hot Wars.
The tariffs initiated in the early 1930's lead diectly to the blood shed in the early 1940s.
But you are LOW INFORMATION and ILLITERATE.
You failed to do the required reading about the History of the Great Depression.
You are doomed as you choose to repeat the mistakes.
But this time is different.
Nobody wins a Global Thermonuclear War. That is what World War III will be.
Both Russia and China have Nukes.
But this time it's different.
This time is different bro, trust me. /s
Since America produces next to nothing they don't have the option of bringing in tariffs. That option existed up until the 1980's. Now all that's left is more lies, bigger lies and a dollar devaluation. The rich are too smart in America they'll park all their money offshore before the government can get their hands on it.
You said that last year. zzzzz
Does the Fed know about this?
Existing home sales down 23% YOY in Naples, FL, frontrunning Monday's national release.
Go to naplesarea.com and click on the statistics tab
I don't doubt that we will eventually crash spectactularly (and maybe sooner than later), but this year after year comparison to 2008 does get stale. Look, stock some extra food, water, ammo, gold/silver, have a decent emergency plan in place with family and friends, and then go about living your life.
Get busy living, or get busy dying.... Andy Dufresne and Red
The National Association of Pimps and Whores and Realtors says BUY HOMES NOW!
2008 they used Bear and Lehman to scare the shit out of people and incinerate the rule book.
Remember tanks in the streets?
THERE ARE NO RULES.
So any thesis that says this is like this time or this other time or that other period IS TOTALLY INACCURATE.
The WORLD has never seen anything like this we are all living in perhaps the most interesting times ever and I don't know what happens when you take all the rules and toss them it's never been tried as far as I know with a worldwide economy.
I know it won't end well that much seems like a given but how it gets there no one knows because since there are no rules and all the past times in history has had at least some I don't see how you're going to get much information out of the past.
Rome went on a farking long time after it should of collapsed.
The world all is trapped on this fun house horror show ride now what's it going to do just get everyone to hold hands and clap their heels together three times?
We're all in a barrel going over the falls even if you want to get out you can't.
Look at China f'ing with currency shorts, and now it seems central banks are buying the market, good luck shorting THAT!
Obama might have been the greatest stock market tip in history.
He said he was going to kill coal and he did and he said now was a good time to buy stocks and it was.
Couple that with fascist health care and he was probably more playable than anything just my opinion.
+1
When US Secretary of the Treasury Hank Paulson said to Congress that there would be tanks in the streets he was not delivering an ominous warning.
It was NOT a warning whatsoever. It was a direct threat.
Since he held the post of the most powerful man in Government at the time he would have ordered it and the US Military would comply.
The facade of the US Government dissolves and then you see that the members of the Exchange Stabilization Fund are the true rulers of our Nation state.
DO YOU WANT THE TRUTH? Or are you satisified in your delusion?
YOUR CHOICE. CHOOSE WISELY.
https://www.youtube.com/watch?v=2ssrcD5GdPQ&index=1&list=PL7D36AB716AAE3D89
And by voting you really think that you have a choice?
LMAO.
Vote TRUMP 2016. Because America deserves it.
The Roman Empire still exists.
It transformed
It is now a franchisse operation.
We are the American franchise.
We still answer to Rome.
Hint: Look at the architecture in the District of Columbia. Does it look familiar to that of Rome?
(That is just the veneer.)
OK....Scrolled through the comments....
Who the fuck is Johnny Moon?
The Heart song?
Simon...stop rubbing that peyote into your navel....Jesus man
A Homeless Man who never had a job and who had no money...walked into a Bank and borrowed $600,000,,,and the Bank paid him $20,000 cash to do it.
Np worries. He is on your tab.
(In the video,,,)
We know it's f'd, but they're so far down the rabbit-hole, all they can do is dig down further, printing and stimulating and fraudulently buying shit until the bitter end.
we're in much much much worse shape today, they haven't fixed anything, and all they can do is pump lies and promote the same crap that created the mess in the first place. it's sickening
...and 10 trillion DEEPER in debt, not including the 4 trillion in Fed funny money / inflation stimuli spent buying, err financing, the debt no one else will
2008 they changed the model and set off on a new course. 2008-9 should have seen a dramatic and serious bleeding of ursurious debts malinvestment etc. This cycle was already happenign pre 2000, every 10 years they blew a bubble and then through a recession they burst it.
The new model on the block is every decade now, blow a bubble much bigger than the one that is failing then sit tight for another decade and do it again. It is possible under fiat money because it is not tied to any intrinsic real value anymore.
They for sure can't fix it and they cannot allow it to fail so it will be another bubble. Now since 2000 how much has gold gone up by value wise? Expect the same again in a couple of years as the next bubble is blown and hard assets go with them. Even holding gold down at 250x ETF's out there is struggling.
Gold is independent of the fiat system except through ETF's. So it will track the next bubble and if gold is anything to go by the problem is 250x bigger than is being stated and that just took out the world economy.
I might be wrong but I can't see what other path they can take.
Not to worry, it seems the PTB have timed this collapse to coincide with Mother Nature's crisis routine, and like always, harder anyone sees it coming because they aren't looking... all the data is quite obvious, but most people can't see outside their 'box', thus the obvious is oblivious, same as always. Prepare for incoming, within and without, it's definitely going to be a bumpy ride.