The Last Bear Just Locked the Bunker Door

IMG Auteur
Published : June 10th, 2012
461 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 

My wife forwarded this (A Terrifying Vision of the End Game) to me last week. It has gone viral after all (which is the only reason a finance-o-phobe like my wife - and like most normal people outside of geeks like you and me - would have seen it). It comes courtesy of Business Insider, which saw fit to pump the bear case at the exact moment that fear could not get any more palpable in US and global stocks markets.

Now
Zero Hedge is apparently still hung up on it. I generally like ZH and marvel at the shear volume of information that these guys churn out; but come on guys, enough already. Raoul Paul (a hedge fund manager no less; oooohhhhh) thinks the system is going to end and a new one will rise from its ashes. Wow, ya think?

Here is what I think; I think the American Association of Individual Investors puked in May and remains resistant to a rally right up to this minute. I had been looking for
potential on the S&P 500 down to 1200 or so, but news items like the now viral End Game report, sentiment data and some technicals shaping up across many markets make me wonder if the top of the 1260 to 1200 target was all we will get.




AAII sentiment courtesy Sentimentrader.com


Regardless, I am expecting generally bullish themes for much of the balance of 2012. If I am wrong, then I am wrong. The system is after all, going to end sometime because it has been choked with unsustainable inputs from meddling and egomaniacal monetary autocrats most intensely since the age of Inflation onDemand took hold in 2001 when a brand new bouncing baby credit bubble began to take shape.




The credit bubble was the funding mechanism of the mortgage and housing bubbles and Wall Street's 'leveraged products' bubble. These of course already wrecked the system. But now the bubble has morphed and embedded itself into US Treasury bonds. And what a bubble this is!

With seemingly limitless power to fund itself, the US can now leverage a critically over bought T bond and relatively strong US dollar to fund operations for a limited time period, like say into the election? It is the age of Inflation onDemand and the T bond says there is demand for inflation; whether this demand was cooked up by official Treasury yield 'operations' or not.

The bear phase in the markets has done its job. Business Insider has done its job. Zero Hedge is making sure that the last doomsday survivor is tucked away safe and sound in his bunker and all is aligned for some unexpected outcomes over the intermediate term.

Long term? Yeh, the system is going to end.


 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
11 DecS W.
Thanks for letting me state my opinion! Your comment is insulting. Try as I might I am yet to find any scientific evidence of AGW or the e...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
10 Decfsvec
You are entitled to put opinions into whatever category you like . . Whether it holds any credence is for others to be convinced not you! Personall...
Peter Schiff Warns Of CRASH: ‘Everybody Is Going To Get Wiped Out!’
08 DecThe Recusant
"Schiff also said no one knows when this is going to happen for sure, only that it will happen." Peter has been warning of the next crash for years...
Meet The World’s Most Powerful Bitcoin Backers
07 Decsonora69
Why run a business or work for one when you can mine bitcoins for the price of the servers and electricity? The higher the price of bitcoin, the mo...
What Now?
04 DecDoom
Mathematically, doubling down is an amazingly powerful strategy...until it isn't. http://professorconfess.blogspot.com/2017/11/doubling-do...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
03 DecS W.
I put the Flat Earthers in the same category as those who believe there is a God, a Heaven and a Hell.
Whipping-Post Politics
02 DecMr. Gnawbone1
I couldn't agree more, Keillor's dismissal was a bridge too far, but it is reflective of the fear, by Boards of Directors across the US, guiding ...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
30 Novprljr1
The majority of Humans are ignorant. Private central banking is a prime example of what the majority will swallow as a working financial syste...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS