Bernanke out by August, QE ends, rates up: Crash

Started by Solar, May 24, 2013, 06:34:32 AM

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Solar

Boy, that headline should get an award for being concise and on point. :laugh:
Get out while you can, if you haven't already.

Get defensive now, start preparing for a crash ... later is too late

Get it? Rates will go up. Way up. Very fast. And America's 95 million Main Street investors will be unprepared. Markets will crash. Like 1994's 24% bond crash after Fed rate increases, notes Wirz.

The big players say the crash "won't happen soon." Don't believe them. They're betting with trillions. And they are hedging their bets, already preparing for "when rates take their first turn higher," because rates will soar "swift and steep," and when that happens it will be too late to prepare.

"Dr. Doom," the economist Nouriel Roubini is also hedging his bet, misleading investors, telling us to expect a "huge rally in risky assets" the next couple years "setting markets up for a major sell-off."

Warning, a crash is more likely to happen in August 2013 than in 2015 when the next presidential election campaign is kicking into high gear. So start preparing for a crash when the new Fed chairman ends cheap money.

http://www.marketwatch.com/story/bernanke-out-by-august-qe-ends-rates-up-crash-2013-05-22
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TowardLiberty

Quote from: Solar on May 24, 2013, 06:34:32 AM
Boy, that headline should get an award for being concise and on point. :laugh:
Get out while you can, if you haven't already.

Get defensive now, start preparing for a crash ... later is too late

Get it? Rates will go up. Way up. Very fast. And America's 95 million Main Street investors will be unprepared. Markets will crash. Like 1994's 24% bond crash after Fed rate increases, notes Wirz.

The big players say the crash "won't happen soon." Don't believe them. They're betting with trillions. And they are hedging their bets, already preparing for "when rates take their first turn higher," because rates will soar "swift and steep," and when that happens it will be too late to prepare.

"Dr. Doom," the economist Nouriel Roubini is also hedging his bet, misleading investors, telling us to expect a "huge rally in risky assets" the next couple years "setting markets up for a major sell-off."

Warning, a crash is more likely to happen in August 2013 than in 2015 when the next presidential election campaign is kicking into high gear. So start preparing for a crash when the new Fed chairman ends cheap money.

http://www.marketwatch.com/story/bernanke-out-by-august-qe-ends-rates-up-crash-2013-05-22

All true- which is why QE will never end.

There will hints about ending QE, sent out like smoke signals from the FED, but this is only to dampen expectations in order to get more of a "bounce" out of further injections of money.

Solar

Quote from: TowardLiberty on May 24, 2013, 08:29:19 AM
All true- which is why QE will never end.

There will hints about ending QE, sent out like smoke signals from the FED, but this is only to dampen expectations in order to get more of a "bounce" out of further injections of money.
But at some point it will end, we can't keep printing and borrowing and going further into debt to give the appearance that we're still liquid.
I'm just wondering if we'll make it long enough to quit floating Wall st. That, or we go under, which will make Greece look like a day at Disney land by comparison.
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TowardLiberty

Quote from: Solar on May 24, 2013, 11:21:24 AM
But at some point it will end, we can't keep printing and borrowing and going further into debt to give the appearance that we're still liquid.
I'm just wondering if we'll make it long enough to quit floating Wall st. That, or we go under, which will make Greece look like a day at Disney land by comparison.
No doubt.

Everything ends at some point.

Though that end will look very different from the "orderly exit" that market watchers are hoping occurs.

I imagine it will be much more like a crack up boom.

Solar

Quote from: TowardLiberty on May 25, 2013, 01:31:00 PM
No doubt.

Everything ends at some point.

Though that end will look very different from the "orderly exit" that market watchers are hoping occurs.

I imagine it will be much more like a crack up boom.
I agree, this is going to end very badly, especially for those that have their retirement accounts tied to this Govt run Ponzi scheme.
The question is, will the next POTUS continue on this death spiral if it doesn't collapse before hand?

This thing is so out of control, I doubt it can even be fixed. The only thing that can slow it, is a real Conservative in the WH that will get the govt out of the way and let the economy do what it does best, produce.
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supsalemgr

Quote from: Solar on May 25, 2013, 01:44:02 PM
I agree, this is going to end very badly, especially for those that have their retirement accounts tied to this Govt run Ponzi scheme.
The question is, will the next POTUS continue on this death spiral if it doesn't collapse before hand?

This thing is so out of control, I doubt it can even be fixed. The only thing that can slow it, is a real Conservative in the WH that will get the govt out of the way and let the economy do what it does best, produce.

I am already protecting my principal. My advisor and I agree the market "bubble" is not far from bursting. We are finding some things with a return that is comfortable for me. When it bursts it will be ugly. That is why the unions are so hell bent on retaining defined pension plans. It is time for the governments to start phasing them out as private business has been doing. I was fortunate enough to work for a company that had a defined pension with a 401-k. They did change it about 20 years ago that folks hired after then did not have the "lump sum" option on the pension which I took.
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