The Bubble Is Now So Massive Even Wall Street is Getting Nervous

Phoenix Capital Research's picture

The market bubble has become so massive that even Wall Street is nervous.

To be clear, investment banks do best when stocks are in a bull market. And they love bubbles because it means more M&A, IPOs, dead offerings, stock issuance and other deals from which they derive their revenues.

So for Wall Street CEOs to openly start warning that the market is in a bubble… they have to be really REALLY nervous about what they’re seeing... and know that a stock market crash is coming

On that note this week, not one but TWO major bank CEOs warned about the markets.

First was Deutsche Bank CEO John Cryan with the following nugget:

“We are now seeing signs of bubbles in more and more parts of the capital market where we wouldn’t have expected them," Cryan said, adding that the interest-rate policy has been partly responsible for the decline in earnings at European banks. “I welcome the recent announcement by the Federal Reserve and now also from the ECB that they intend to gradually bring their loose monetary policy to an end.”

Source: Bloomberg.

This, in of itself, is extraordinary. But then we have Lloyd Blankfein, CEO of Goldman Sachs stating the following during the same week:

“When yields on corporate bonds are lower than dividends on stocks, that unnerves me," the Goldman Sachs chief executive said during an interview Wednesday that was broadcast at a European banking conference in Germany and on the internet.

Source: CNBC

So we have not one, but TWO Wall Street CEOs warning that the market is in a bubble. And we all know how those end: in a stock market crash./ This is truly staggering. And it indicates that those at the top of the financial system are actively preparing for what's coming.

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It's called Stock Market Crash Survival Guide.

We've reopened this report to the public for 24 hours based on the warnings from Wall Street CEOs.

But today is the last day this report will be available.

To pick up one of the last remaining copies…


Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

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DemandSider's picture

Shouldn't Wall Street be the most worried of all about the disconnect between average America's fortune and the stock market?

Reminds me of the narration from the Python skit about the Piranha brothers vicious and widespread crime wave, which included pulling out livers, splitting nostrils, and nailing their victims' heads to the floor:


"EVEN the police began to take notice."


Where's the brilliant, Superintendant Harry "Snapper" Organs when you need him?



JailBanksters's picture

To be more clear

Banks do even Betterer when they steal other peoples money or assets.

Banks are the only ones now playing in the House of Cards, so there is nobody to steal from except other Banks.

They really don't have a choice, except to make the bubble biggerer and hope outsiders want to play House of Cards.

Storm-Clouds's picture

The dead don't care...........BUT!

The "debt ceiling" is about to be eliminated in a deal selling our grandchildren's grandchildren down the river......

We are about to see deal making in DC & the EU that would make a pornstar blush!

Just a hair past full bush insanity.....

The ha-ha-markets will soar until ???

All dips cancelled until further notice.

Bonds we don't need no stinking bonds...we ain't paying just will work this time!

We promise....

buzzsaw99's picture

bank ceos drool at the thought of higher volatility and trading volume.  they aren't nervous at all they are drooling.

Anteater's picture

Alan Greenspan 'Irrational Exhuberance' DEC 1996

Gramm-Lietch-Bliley Bankster Coup NOV 1999

Peak of Post-GLB Bubble Market MAR 2000

So this Short-Seller Honey Pot propaganda is still years too early,

UNLESS the Banksters pull off a No National Debt Ceiling Coup,

which won't happen until December. 

Too early to say whether Military will overthrow the Corporate:

State in a Purple Revolution. Don't expect a market top in 2017.

Don't expect anything, then you won't be disappointed.

The most pathetic thing in life is salesmen who believe their own pitch.

"We were just talking about adoptions over borscht and crumb cake!"


Clowns on Acid's picture

I don't think that Wall St is nervous.... they are just virtue signalling.

NumbersUsa's picture

Help Flush Down Brown ! 

Sign our petition to recall Jerry Brown:

Gorgeous's picture

We are now seeing signs of bubbles in more and more..."  No duh. 

But only a "crash"? Not a full blown "implosion"?  At least a solid "tanking".  Possibly "cratering"?  At least mild "carnage".  Possibly even a "blood bath".  But it's gonna be big.  It's gonna be bad.  And its just around the corner.  Tyler's, show me the cause.  I thought stocks would drop after end of QE3.  But no...they unleashed the Bullard....then three simple words, "whatever it takes", and voila, no problemo amigo.  Love the creative doom though.

silverer's picture

Start to worry after the nuclear war starts, and a few weeks after the DOW tops out at 26,000. Then maybe it will turn down hard. Maybe. Unless Goldman can keep the generators going to keep the market open.

kenny500c's picture

Wait, shouldn't the yield on a bond be lower than the dividend yield of the same issuer?

Bonds are ahead of equities in the pecking order in the event of a liquidation.

tstpilot00101's picture

I was thinking the same thing. Dividend yields should always be higher than bonds because you're taking the risk of owning the stock which takes a back seat to bond holders.

tangent's picture

Free money isn't what it used to be. What will the elite bankers do if they can't properly exploit their discriminatory interest rates?

Buck Johnson's picture

Love that scene, and it matches perfectly what will happen when the market pops.  They have done so much to delay the inevitable that now nothing they can do can stop them from taking their fiscal medicine.


Iconoclast421's picture

That's not how markets crash.There is a peak. Then a month later it is down 2-4%, then 2 more months it goes down another 2-4%. Then a few months later is goes down another 2-4%. And interspersed at random points there are retracements. Then you get the slightly bigger wave downwards, the one that makes headlines. The market lost more during the period outside the two months surrounding Lehman's bankruptcy.

The Real Tony's picture

I'm thinking this time around the major market exchanges will be closed for 2 weeks to a month then reopen 50 to 60 percent lower. Fast market conditions. The last thing I could ever see is what you describe.

Anteater's picture

Agreed. First time around SCDOs were in the 100s BILLIONS.

This time around QEn are in the TRILLIONS, for just as long.

Hindcasters must expect a 10x worse selloff, on logorithmic

scale, so instead of -54%, it will be more like -76% and half the

time, BUT, we have PPT and QEn now, so it will recover +152%

in half the time also. Stay all cash now, and wait for the bottom.

Then, if it keeps going down, you're fucked anyway. All 1s to 0s.

Then you have to sell off your children to The Rentiers for turnips.