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Marc Faber Warns “Frankenstein” Global Financial System To Collapse!

implosion_demolition_DesertInn

  • Marc Faber Warns “Frankenstein” Global Financial System To Collapse! 
    by http://www.kingworldnews.com
    On the heels of increased geopolitical tensions, particularly in Ukraine, and the Greeks manevering to avoid default, today legendary Marc Faber warned King World News that the Frankenstein global financial system is going to collapse.

    Eric King:  “There are over one quadrillion dollars of derivatives that could melt down the global financial system.”

    Marc Faber:  “My take on this is simply that derivatives will not survive for the next 2,000 years….  

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    Derivatives Market To Disappear Within 5 Years
    “It’s something that has developed and it will vanish.  My suspicion is it (the derivatives market) will be gone within 5 years.

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    read more!

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February 10, 2015 Posted by | Economics | , , , , , , , , , | 1 Comment

European Stocks Plunge as Greece Sticks to Anti-Austerity Policy!

  • Published on Feb 9, 2015
    European stock markets sink after Greek Prime Minister Alexis Tsipras pledges to stick to his electoral anti-austerity promises. Tsipras has pledged that he remains unshakable in his bid.

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    London’s FTSE 100 index fell by nearly one percent in early trade. Also in Paris, CAC 40 shed a little more than one percent. The impact was harder in Germany where Frankfurt DAX 30 index plunged by over one and a half percent. But, stocks took the greatest blow in Athens, plummeting by more than six percent at the opening bell. This comes on back of Greece’s refusal to ask for a bailout extension from its creditors with a deadline looming this week. Intense talks are underway in Athens to avoid a Greece default and its potential exit from the eurozone. German Finance Minister Wolfgang Schaeuble has warned that Greece needs to agree with its creditors if it wants European help.

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February 10, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment

Today’s “Dip” Is A Warning – Get Out Of The Casino!

casino_large

  • Today’s “Dip” Is A Warning—-Get Out Of The Casino! 
    by  , January 27, 2015, http://davidstockmanscontracorner.com/ 
    Shortly after today’s open, the S&P 500 was down nearly 2% and off its recent all-time high by 3.5%. But soon the robo-machines and day traders were buying the “dip” having apparently once again gotten the “all-clear” signal.

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    Don’t believe it for a second! The global financial system is literally booby-trapped with accidents waiting to happen owing to six consecutive years of massive money printing by nearly every central bank in the world.
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    Over that span, the collective balance sheet of the major central banks has soared by nearly $11 trillion, meaning that honest price discovery has been virtually destroyed. This massive “bid” for existing financial assets based on credit confected from thin air drove long-term bond yields to rock bottom levels not seen in 600 years since the Black Plague; and pinned money market costs at zero—-for 73 months running.
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    What is the consequence of this drastic financial repression along the entire yield curve? The answer is bond prices which keep rising regardless of credit risk, inflation or taxes; and rampant carry trade speculation that can’t get out of its own way because  central banks have made the financial gamblers’ cost of goods—the “funding” cost of their trades—-essentially zero.
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    Needless to say, this is all too good to be true because it has generated humungous funding mismatches. That is, on the warranted word of central bankers—-who are petrified of a Wall Street hissy fit in any event—-speculators have funded long-term debt and equity securities with overnight money which must be rolled every day. This “works”, of course, until the carry-traders are hammered by a sudden, powerful and unexpected shock owing to either a sharp drop in the price of their “long” asset or spike in the carry cost of their overnight funding.
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    Thus, the true evil of central bank “wealth effects” pegging of risk asset prices (i.e. the Greenspan/Bernanke/Yellen “put”) is not merely the undeserved windfalls which accrue to the financial asset owning households at the very top of the income ladder. An equally baleful effect is that it suppresses fear of risk and eventually drives it from the casino entirely.
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    read more!

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January 29, 2015 Posted by | Economics | , , , , , , , , | 1 Comment

A Perfect Storm: Brace Yourself for an Epic Economic Meltdown!

Global Super Storm meltdown??

Global Super Storm meltdown??

  • A Perfect Storm: Brace Yourself for an Epic Economic Meltdown! 
    by James Rickards, http://dailyreckoning.com/ 
    Over the coming months, I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown.
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    Circumstances lead me to believe it could play out like the meltdown I experienced in 1998 after Long-Term Capital Management (LTCM) failed. This time, however, there will be several crucial differences that will leave investors and regulators unprepared.
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    In fact, last week, I held a live intelligence briefing called The Perfect Storm: A 1998 Redux to alert Strategic Intelligence readers to the dangers. But what I didn’t mention during the briefing were the two intelligence triggers I used to support my outlook.
    ….
    In 1998, a financial panic almost destroyed global capital markets. It started in Thailand in June 1997 and then spread to Indonesia and Korea. By the summer of 1998, Russia had defaulted on its debt and its currency collapsed. The resulting liquidity crisis caused massive losses at hedge fund Long-Term Capital Management.
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    I know about the losses because I was there. As LTCM’s lead counsel, I was at every executive committee meeting during the height of the crisis that August and September. We were losing hundreds of millions of dollars per day. Total losses over the two-month span were almost $4 billion. But that wasn’t the most dangerous part.
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    Our losses were trivial compared with to the $1 trillion of derivatives trades we had on our books with the biggest Wall Street banks. If LTCM failed, those trillion dollars of trades would not have paid off and the Wall Street banks would have fallen like dominoes. Global markets would have completely collapsed. 

    The next financial collapse, already on our radar screen, will not come from hedge funds or home mortgages. It will come from junk bonds, especially energy-related and emerging-market corporate debt.

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    The Financial Times recently estimated that the total amount of energy-related corporate debt issued from 2009-2014 for exploration and development is over $5 trillion. Meanwhile, the Bank for International Settlements recently estimated that the total amount of emerging-market dollar-denominated corporate debt is over $9 trillion.

    Energy-sector debt has been called into question because of the collapse of oil prices. And emerging markets debt has been called into question because of a global growth slowdown, global deflation, and the strong dollar.

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    The result is a $14 trillion pile of corporate debt that cannot possibly be repaid or rolled over under current economic conditions. Not all of this debt will default, but a lot of it will. Most of the energy related debt was issued in the expectation that oil would remain in the $80 to $130 dollar per barrel range
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    read more!

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January 22, 2015 Posted by | Economics | , , , , , , , | 1 Comment

Panic At Davos After Swiss Move As Bank Runs Accelerate And Financial System Begins To Implode!

Vulcan-planet-implosion-blackhole

  • Panic At Davos After Swiss Move As Bank Runs Accelerate And Financial System Begins To Implode! 
    by http://www.kingworldnews.com
    Today a man who has been uncovering critical information for 25 years told King World News there is panic in the air at Davos as the shocking Swiss move has bolstered record attendance at a time when the bank runs in Europe are accelarating and the global financial system is beginning to implode.

    Eric King:  “Steve, as you know there is going to be record attendance at the meeting in Davos and there is definitely great concern after the surprise Swiss move.”

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    Steve Quayle:  “The derivatives market is now crumbling in the background.  What the Swiss have basically done is shattered the hall of mirrors.  Meaning, the illusion has now disappeared and we will see panic in the markets over the next two to four weeks….
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    read more!

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January 22, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , | 1 Comment

Video: Market Crash Looming: “Riots Worldwide, Wars, Extreme Volatility… Even Global Depression”!

  • Video: Market Crash Looming: “Riots Worldwide, Wars, Extreme Volatility… Even Global Depression”! 
    by Mac Slavo, January 13th, 2015,  SHTFplan.com 
    With the debt obligations of the United States at over $118 trillion dollars, it has become obvious that the collapse of our economic powerhouse, starting with the U.S. dollar, is a foregone conclusion. While it’s impossible to predict when such an event will occur or what the final trigger will be, at this point it won’t take much to send the whole thing tumbling down.
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    And when it finally does happen, as noted in the short video report from Future Money Trends, the resulting shift to a new system could very quickly devolve into the worst of what humanity has to offer.
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    A major market bubble is brewing…
    The entire monetary system is dollar based. So even though the U.S. is running around bankrupt this will continue until the world is ready for a massive shift to a new system – something that could cause riots worldwide, wars and extreme volatility in markets… even a global depression.
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    The dollar paradigm will likely be postponed for as long as possible, but have no doubt, the end of dollar dominance will happen in our lifetimes.
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    read more!

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January 15, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , | 1 Comment

Gerald Celente: What We Are Seeing Now Preceded The Great Crash Of 1987!

Global Super Storm meltdown??

Global Super Storm meltdown approaching rapidly??

  • Gerald Celente – What We Are Seeing Now Preceded The Great Crash Of 1987! 
    by http://www.kingworldnews.com
    Today the top trends forecaster in the world spoke with King World News about what we are seeing right now and how it parallels what the world witnessed just before the global stock market Crash of 1987.  Below is what Gerald Celente, founder of Trends Research, had to say in his powerful interview.

    Gerald Celente: 
    “The Federal Reserve has no other cards to play.  You are seeing it in the polling from major economists around the world not having faith in what the European Central Bank is going to do.  It’s one big con game and there is nothing left….
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    read more!
Don't you see the Illuminist pyramid and Satanic capstone on your dollar bill?

Don’t you see the Illuminist pyramid and Satanic capstone on your dollar bill?

The Satanic capstone, the Anti-Christ, on your dollar bill !

The Satanic capstone, the Anti-Christ, on your dollar bill !

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January 12, 2015 Posted by | Economics | , , , , , , , , , , , , , , , , , | Comments Off

Bill Gross Thinks 2015 Is The Year It All Falls Apart!

  • Bill Gross Thinks 2015 Is The Year It All Falls Apart! 
    by Samantha Sharf, Forbes Staff, via http://www.msn.com/en-us
    The illustration atop bond legend Bill Gross’ latest investment outlook letter features the classic New Years baby donning a top hat and 2015 sash. Sitting beside him is an old man with a long gray beard, cane and an hourglass (think Moses). Gross, who controversially joined tiny Janus Capital Group in September from Management Company the mammoth bond firm he founded in 1971, argues in the letter out Tuesday that the baby is the market’s past and the old man is its future.
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    Gross writes, “Beware the Ides of March, or the Ides of any month in 2015 for that matter. When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.” (The underline is his.) Gross declined to pinpoint an exact date for the downturn but reasons it is inevitable as low or negative yields “fail to generate sufficient economic growth,” corporations become borrowers rather than investors and structural elements (demographics, technology and globalization) shift unfavorably.
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    “There comes a time when common sense must recognize that the king has no clothes, or at least that he is down to his Fruit of the Loom briefs, when it comes to future expectations for asset returns,” he writes. “Now is that time and hopefully the next 12 monthly ‘Ides’ will provide some air cover for me in terms of an inflection point.”
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    Nods to antiquity and undergarments notwithstanding Gross’ writing here is tame when you consider in the last year alone he has compared himself to Justin Bieber and James Bond. Yet his call for minus signs marks a more negative view than he had explicitly shared previously. In October, he was far from bullish but said he did not foresee a “significant bear market” and called for returns returns of 2-4% in bonds and 5-6% in stocks over the next seven years. Gross will share his 2015 forecasts for interest rates and risk assets at Barron’s Roundtable later this month.
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    read more!

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January 8, 2015 Posted by | Economics | , , , , , , | Comments Off

10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW!

Global economic, financial and currency meltdown approaching!

Global economic, financial and currency meltdown approaching!

  • 10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW! 
    by Michael Snyder, http://theeconomiccollapseblog.com/ 
    If you do not believe that we are heading directly toward another major financial crisis, you need to read this article.  So many of the exact same patterns that preceded the great financial collapse of 2008 are happening again right before our very eyes.  History literally appears to be repeating, but most Americans seem absolutely oblivious to what is going on.  The mainstream media and our politicians are promising them that everything is going to be okay somehow, and that seems to be good enough for most people.  But the signs that another massive financial crisis is on the horizon are everywhere.  All you have to do is open up your eyes and look at them.
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    Bill Gross, considered by many to be the number one authority on government bonds on the entire planet, made headlines all over the world on Tuesday when he released his January Investment Outlook.  I don’t know if we have ever seen Gross be more negative about a new year than he is about 2015.  For example, just consider this statement
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    “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”
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    And this is how he ended the letter
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    And so that is why – at some future date – at some future Ides of March or May or November 2015, asset returns in many categories may turn negative. What to consider in such a strange new world? High-quality assets with stable cash flows. Those would include Treasury and high-quality corporate bonds, as well as equities of lightly levered corporations with attractive dividends and diversified revenues both operationally and geographically. With moments of liquidity having already been experienced in recent months, 2015 may see a continuing round of musical chairs as riskier asset categories become less and less desirable.
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    Debt supercycles in the process of reversal are not favorable events for future investment returns. Father Time in 2015 is not the babe with a top hat in our opening cartoon. He is the grumpy old codger looking forward to his almost inevitable “Ides” sometime during the next 12 months. Be cautious and content with low positive returns in 2015. The time for risk taking has passed.
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    So why are Gross and so many other financial experts being so “negative” right now? It is because they can see what is happening.
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    They can see the same patterns that we saw in early 2008 unfolding again right in front of us.  I wanted to put these patterns in a single article so that they will be easy to share with people.  The following are 10 key events that preceded the last financial crisis that are happening again right now…
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    read more!

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January 8, 2015 Posted by | Economics | , , , , , , , , , | Comments Off

Art Cashin Warns Stock Rout Will Turn Into Full-Blown Panic If Contagion Spreads!

Financial_Collapse

  • Art Cashin Warns Stock Rout Will Turn Into Full-Blown Panic If Contagion Spreads! 
    by http://www.kingworldnews.com
    On the heels of a more than 330 point plunge in the Dow and a $3 drop in the price crude, which took the oil market below $50, today legendary Art Cashin warned King World News that the rout in stocks will turn into an outright panic if contagion spreads.

    Eric King:  “Art, people are becoming increasingly concerned with the action in the stock market and also the crude oil market.  What should we expect from here?”

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    Art Cashin:  “Oil was almost in virtual freefall today when West Texas Intermediate (crude oil) went below $50.  That put extra selling pressure on stocks.  You will also notice that it put pressure on things like the high yield market, which has roughly a 15 percent exposure in the oil area.

    The other concern is Europe and the rumor circulating that Greece might consider exiting the eurozone, and that Germany might consider letting them.  Now that may be people calling each others bluff, but the market was frightened enough to think that if Greece does it, then there is a strong likelihood that Italy, Spain, or Portugal might say, ‘Hey, we don’t want this austerity either.  We’re willing to get out (of the euro).’

    So that spread the contagion throughout the zone and put the euro in real danger, which is one of the reasons it broke the 1.20 level so readily today.”
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    read more!

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January 6, 2015 Posted by | Economics | , , , , , , , , , , , , | Comments Off

Jeff Gundlach: “If Oil Drops To $40 The Geopolitical Consequences Could Be Terrifying”!

Global financial storm approaching!

Global financial storm approaching!

  • Jeff Gundlach: “If Oil Drops To $40 The Geopolitical Consequences Could Be Terrifying”! 
    by Tyler Durden, http://www.zerohedge.com
    In a recent interview with FuW, DoubleLine’s Jeff Gundlach explained his concerns about the oil market not being “unequivocally good” for everyone…
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    Question: The crash in the oil market is already causing jitters in the financial markets around the globe. What is your take on that?
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    Gundlach: Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.

    What would that mean for stocks?

    Gundlach is right historically…
    Large and rapid rises and falls in the price of crude oil have correlated oddly strongly with major geopolitical and economic crisis across the globe. Whether driven by problems for oil exporters or oil importers, the ‘difference this time’ is that, thanks to central bank largesse, money flows faster than ever and everything is more tightly coupled with that flow.
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    So is the 45% YoY drop in oil prices about to ’cause’ contagion risk concerns for the world?
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    read more!

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January 6, 2015 Posted by | Economics, GeoPolitics | , , , , , , , | 3 Comments

Oil Slump: Prices Fall Past $50 for First Time in 5 Years!

  • Published on Jan 5, 2015
    Oil prices slumped to a five-year low today. With US crude briefly breaching the symbolic $50 threshold. RT’s Marina Portnaya has more. For more on the falling markets RT is joined by economic journalist Clem Chambers.
http://rt.com/uk/215579-uk-oil-industry-crisis/

Click on image for article!

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January 6, 2015 Posted by | Economics | , , , , , | Comments Off

Financial Criminality: Wall Street Manipulates Energy Prices, Gold … and Every Other Market!

https://larouchepac.com/20141222-3

Click on image for article!

  • Financial Criminality: Wall Street Manipulates Energy Prices, Gold … and Every Other Market! 
    by Washington’s Blog, via http://www.globalresearch.ca/ 
    Energy Prices Manipulated
    The U.S. Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in  California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011.

    Pulitzer prize-winning reporter David Cay Johnston notes today that Wall Street is trying to launch Enron 2.0:

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    The price of electricity would soar under the latest scheme by Wall Street financial engineers to game the electricity markets.
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    If regulators side with Wall Street — and indications are that they will — expect the cost of electricity to rise from Maine to California as others duplicate this scheme to manipulate the markets, as Enron did on the West Coast 14 years ago, before the electricity-trading company collapsed under allegations of accounting fraud and corruption.
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    The test case is playing out in New England. Energy Capital Partners, an investment group that uses tax-avoiding offshore investing techniques and has deep ties to Goldman Sachs, paid $650 million last year to acquire three generating plant complexes, including the second largest electric power plant in New England, Brayton Point in Massachusetts.
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    Five weeks after the deal closed, Energy partners moved to shutter Brayton Point. Why would anyone spend hundreds of millions of dollars to buy the second largest electric power plant in New England and then quickly take steps to shut it down?
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    Energy partners says in regulatory filings that the plant is so old and prone to breakdowns that it is not worth operating, raising the question of why such sophisticated energy-industry investors bought it.
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    The real answer is simple: Under the rules of the electricity markets, the best way to earn huge profits is by reducing the supply of power. That creates a shortage during peak demand periods, such as hot summer evenings and cold winter days, causing prices to rise. Under the rules of the electricity markets, even a tiny shortfall between the available supply of electricity and the demand from customers results in enormous price spikes.
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    With Brayton Point closed, New England consumers and businesses will spend as much as $2.6 billion more per year for electricity, critics of the deal suggest in documents filed with the Federal Energy Regulatory Commission.
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    That estimate will turn out to be conservative, I expect, based on what Enron traders did to California, Oregon and Washington electricity customers starting in 2000. In California alone the short-term market manipulations cost each resident more than $1,300, a total burden of about $45 billion.
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    read more!

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January 6, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Comments Off

As Japan Opens, Nikkei 225 Down Over 500 Points From Overnight Highs – Below 17,000!

Global financial storm is coming!

Global financial storm is coming!

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January 6, 2015 Posted by | Economics | , , , | Comments Off

Peter Schiff & Alex Jones: Is This The Final Bubble Before Total Collapse?

  • Published on Jan 2, 2015
    Alex Jones talks with Peter Schiff about what he thinks is coming for America and what he feels will happen once this latest bubble bursts.

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January 3, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , | Comments Off

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