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

TEC ^ | 01/06/2015 | Michael Snyder

[plain talk]

He said when the year is done there will be minus signs on returns. You can’t expect double digit returns every year. Some years will be negative. So what? One always has to be prepared for a crash by either being willing to ride it out or invest more conservatively.

[Diana in Wisconsin]

He forgot the last prediction after all of his other predictions come to fruition:

World War 3. Well, maybe World War 3.1, if we’re already battling the Muzzies here at home...

It’s a shame no one is taught actual HISTORY in Publik Skool.

[Bubba Ho-Tep]

Bill Gross has predicted 10 of the last 2 recessions.

[eyeamok]

Nothing really new here, ALL DEBT BASED monetary systems always end in disaster. It is expected and normal for this to happen when you build a giant ponzi scheme.

[faithhopecharity]

the Fed, which is owned by the big banks, will bail the big banks out again (and again, if necessary)

that’s a major reason why they set up the Fed in the first place

otherwise, it IS obvious that our economy remains ElSicko

[Osage Orange]

Or....have stops in place.

[GOP_Party_Animal]

LOL

[Toddsterpatriot]

#3 A substantial decline for 10 year bond yields. When investors get scared, there tends to be a “flight to safety” as investors move their money to safer investments. We saw this happen in 2008, and that is happening again right now.

Looks like it mostly bounced between 4% and 5% for the 3 years before the crisis. Where was the substantial drop before the bottom fell out?

#4 The price of oil crashes. As I write this, the price of U.S. oil has dipped below $48 a barrel. But back in June, it was sitting at $106 at one point. As the chart below demonstrates, there is only one other time in history when the price of oil has declined by more than $50 in less than a year…

Oh, now I see Mitch's confusion, oil tanked after the crisis, just like interest rates did.

He somehow feels that because they've dropped now, that is going to cause a crisis? LOL!

Goldman Sachs, Citicorp, Morgan Stanley, Bank of America, DeutscheBank, SocGen, all succumb to insolvency.

We'll have to revisit this thread in the next year.

[Toddsterpatriot]

the Fed, which is owned by the big banks, will bail the big banks out again (and again, if necessary)

Well, it's owned by the Treasury, but they will lend money again, if they have to.......

that’s a major reason why they set up the Fed in the first place

A lender of last resort is very useful, and Buffett is too much of an assclown to take the place of old J.P. Morgan from 1907.

[faithhopecharity]

Actually, the only ownership stock shares of the regional FR Banks are issued to, and held by their member (private) banks, pursuant to federal statute setting up the FR system.
The law provides that the member (private) banks must be paid a 6% (guaranteed, you may say) dividend on their stock shares in the FR banks. (And the member banks may not freely sell their stock in the FR banks.)
These regional FR banks then elect 6 of the 9 directors of the central FR Bank.
Profits beyond the above-noted dividends are then turned over to the Treasury. (The Treasury makes more from the Fed than the combined owner-member banks.)
And, most policy decisions of the central FR Bank are understood to be pretty well controlled by Congress.
And so on and so forth.
But yes, there are FR system stock shares out there... and they are all held by member (private) banks.
That’s as close as I can get with this, its always been a hotly contested organization,
Best,
fhc

[wideawake]

Perfect.

[Toddsterpatriot]

The law provides that the member (private) banks must be paid a 6% (guaranteed, you may say) dividend on their stock shares

Absolutely. 6% added up to about $1.6 billion in dividends in 2013. The US Treasury received about $78 billion of the Fed's earnings in 2013.

Any time the Treasury gets nearly 50 times the earnings the "owners" receive, it's safe to say they are the real owners.

[faithhopecharity]

your interprtation is not unreasonable but
1. still, the only equity shares are held by the private member banks, and
2. their rate of return on their shares is guaranteed, paid first, with any profits left over being paid into the Treasury. The Treasury’s (larger, now) payoff is not guaranteed.

At any event, it is a hybrid sort of thing, sort of like a mule...
smile
smile
smile

[ForYourChildren]

bmrk

[Starstruck]

During the first three trading days of 2015, the S&P 500 was down a total of 2.73 percent. There are only two times in history when it has declined by more than three percent during the first three trading days of a year.

And after 5 days of trading we are slightly up for the year.

[Varsity Flight]

The “Student of the Great Depression” trading collars are in place.

Meaning Extortion-Care Collars around the necks of anyone with a SS number.

They need the $. The ExtortionCare Lobby tightens the collars. Failing? ....Write new lobbyself laws, just like the Omnibus “Everything” derivative backstopping.

[SeekAndFind]

RE: And after 5 days of trading we are slightly up for the year.

The Dow and S&P 500 were similarly DOWN January 2014. This doesn’t really tell us anything much.

[Lurkina.n.Learnin]

BFL

[spawn44]

He doesn’t even mention the main cause of the last big recession, the collapse of the housing bubble.