David Stockman: We Are Nearing the End, Investors Heading for Slaughter

Sunday, January 31, 2016

Greg Hunter Interviews David Stockman:
I think the world economy is plunging into an unprecedented deflation recession period of shrinkage that will bring down all the markets around the world that have been vastly overvalued as a result of this massive money printing and liquidity flow into Wall Street and other financial markets.

The CNBC interview referenced can be found here: 

Making Heads or Tails of This Market

By Elliott Wave International

As the books were closed on 2015, the Chicago Tribune reported:
"After a dismal stock finish to 2015, your natural conclusion might be: Why did I bother? 
"The Standard & Poor's 500 finished the year down 0.73%... The DJIA suffered its worst year since the 2008 financial crisis, declining 2.2%... Only the Nasdaq ended the year up... 5.7%... 
"...energy stocks as a group plunged 24%, and individually, many fell 30 or 40%. The energy plunge hurt unsuspecting retirees as master limited partnerships, or MLPs, dropped 36% -- a shock since analysts previously claimed that pipelines and other infrastructure in MLPs would be immune to an energy crash. Another retiree favorite for dividends -- utility funds -- lost 9% in 2015, according to Morningstar. 
"Bond funds weren't comforting either. The average bond fund investing in a broad mix declined about 2% … …junk bond funds have declined 4% on average, according to Morningstar."
We're only a few trading days into 2016 -- yet, so far, the new year isn't looking any more promising. Right now, you may be scrambling to make sense of the DJIA's huge tumble on Monday. (It was, in fact, the Dow's worst intraday start to the year since 1932 and worst full first day start since 2008.)

Be Like Iceland: Avoid a Second Great Depression

Saturday, January 30, 2016

Be Like Iceland in the Second Great Depression

Saturday Stories of Interest

George Bush, Obama and the Second Great Depression BOJ Stuns Markets With Negative Interest Rates
Bernanke: Fed Likely to Use Negative Rates, Too
Beware: Mining Industry in Collapse - Martin Armstrong
Is the Correction Over or is it a Primary Bear Market?
Michael Pento: Global Second Great Depression On The Way
THE ESTABLISHMENT SPEAKS: NYT Endorses Hillary for Democratic Nomination
America 2016 and the Politics of Rage: We're mad as hell and not going to take it anymore!

Can Stock Values Simply Disappear? Yes.

Mad as hell and not going to take it anymore! America 2016 and the Politics of Rage

Donald Trump and the Second Great Depression
MARSHALLTOWN, IOWA - Craig Ziemke has voted for Democrats all his life, including twice for President Barack Obama. Not this year.

Bernanke: Fed Likely to Use Negative Interest Rates, Too

Pure and simple insanity.
By Greg Robb | MarketWatch
Ben S. Bernanke, former chairman of the U.S. Federal Reserve, is now open to the use of negative rates. 
Ben Bernanke, Zero Rates and the Second Great Depression
WASHINGTON (MarketWatch) — The Federal Reserve should consider using negative rates to counter the next serious downturn, said former chairman Ben Bernanke in an interview with MarketWatch.  
“I think negative rates are something the Fed will and probably should consider if the situation arises,” Bernanke said in the interview last month.  
 Former Fed Vice Chairman Alan Blinder urged the Fed during the financial crisis to set negative interest rates for overnight deposits — essentially charging banks a fee to park funds at the central bank. 
 Blinder argued this would force banks to find more productive uses for the money. 
Bernanke and his colleagues opted not to push interest rates below zero, worried that the costs outweighed the benefits. 

Jim Grant: The Fed Will Return to Zero Rates

Mining Industry in Collapse

Friday, January 29, 2016

Gold Mining and the Second Great Depression
From Martin Armstrong's Blog:
The mining industry is collapsing. Everyone expanded dramatically because they never expected China to stop buying. The loading up of debt is likely to get many companies in trouble. We may see the entire industry downgraded on a wholesale basis. Those looking at the miner stocks should pay attention to the forecast on each one in Socrates. Some of the biggest will fall.
Beware, beware.  You have been warned.


Taxing Money: BOJ's Negative Rates Are 'Economic Kamikaze'

CNBC: The Japanese central bank has only dug the country deeper into a hole by adopting negative interest rates, Lindsey Group chief market analyst Peter Boockvar said Friday.


Martin Armstrong on the Plague Cycle: Moving into Peak 2017-2020

Wednesday, January 27, 2016

Disease Plague Cycles and the Second Great Depression
From Martin Armstrong's Blog:
In the “Cycle of War” report, we mentioned in passing our models on plagues. We reported that this cycle nearly matched the war cycle coming in at 25.15 years. Unfortunately, this has turned up also in 2014. We warned that the Ebola virus was in a bullish trend and should reach a major event in 2019. Interestingly enough, the places with the least impact should be New Zealand and Scotland.

Michael Pento: Global Depression On the Way

Tuesday, January 26, 2016

Financial expert and money manager Michael Pento is forecasting a global depression. Pento says:

Stories of Interest

Monday, January 25, 2016

David Stockman: Peak Debt & A Dead Cat Bounce
China Capital Outflows Rise to Estimated $1 Trillion in 2015
France Declares an Economic State of Emergency
How the Homeless Population Is Changing: It's Older and Sicker
Look Out! Oil company defaults are spiking
Norway's Biggest Bank Calls To Ban Cash
Can Stock Values Simply Disappear" Yes.

Marc Faber: "Expect US Market To Decline By 20-40%"

...From the May 2015 Highs."


Can Stock Values Simply "Disappear"? Yes.

And it's happened before, too -- just think back to the 2007-2009 financial crisis
By Elliott Wave International
On Wednesday (Jan. 13) CNBC reported that,
"Almost $3.2 trillion has been wiped off the value of stocks around the world since the start of 2016, according to calculations by a top market analyst. U.S. stocks are now off $1.77 trillion, while overseas stocks are down $1.4 trillion."
Stocks rallied on Thursday -- but then tanked even harder on Friday, which probably made that $3.2 trillion figure even bigger.

But how can that be? Doesn't money simply move from one asset class to another?

Our readers have asked us this question before -- especially during the 2007-2009 financial crisis, when 54% of the Dow's value got erased in just 18 months.

You may be wondering this, too. Well, here's an answer -- from Ch. 9 of Bob Prechter's New York Times Business bestseller, Conquer the Crash:

Dead Cat Bounce : Stockman On CNBC : Peak Debt Headed For Recession

Sunday, January 24, 2016


David Stockman joined CNBC’s Fast Money to discuss why we are at peak debt, and could be headed for a recession.

Source:  Bubblevision, via David Stockman's Contra Corner.

Earlier interviews:

The Magic Flying Bull Rides Again! + Video

Friday, January 22, 2016

by Evelyn Cheng | CNBC | Friday, 22 Jan 2016 
U.S. stocks closed higher Friday, for their first positive week in four, helped by a recovery in oil from multiyear lows and hopes of stimulus overseas. 
The S&P 500 closed 2 percent higher, above the psychologically key 1,900 level, with energy gaining 4.3 percent to lead all sectors higher. Oil topped $32 to settle at its highest since Jan. 8.
Video below:

France Declares "Economic State of Emergency!"

Wednesday, January 20, 2016

But the 35-hour workweek will stay.  France is doomed, along with the rest of Europe, the EU, and the Euro.

PARIS — French President Francois Hollande pledged Monday to redefine France’s business model and declared what he called “a state of economic and social emergency,” unveiling a 2-billion-euro ($2.2 billion) plan to revive hiring and catch up with a fast-moving world economy.


  More news....

Books of Interest