Skip to comments.The Bulls Aren't Laughing Anymore, The Stock Market Will Collapse And All Hope Will Be Lost
Posted on 05/31/2012 5:27:46 AM PDT by blam
The Bulls Aren't Laughing Anymore, The Stock Market Will Collapse And All Hope Will Be Lost
May 31, 2012, 5:54 AM
In his latest note, SocGen's famously bearish Albert Edwards looks around at interest rates falling all over the place and Europe in chaos, and gives himself a good chest-beating, while mocking the equity bulls for yapping about how cheap stocks are.
He's clearly feeling pretty good about the way things are turning out, writing: "For 15 years we were told the West is nothing like Japan. We agree. It is worse! "
The whole thing is really captured here:
As 30y German Bund yields slide below 2% and rapidly converge towards Japanese rates, we have a taster of what is to come in the US and UK in the months ahead. We still see US 10y yields even now making new all-time lows falling below 1% as hard landings occur in China and the US.
The secular equity valuation bear market began in 2000 and renewed global recession will be the trigger to catalyse the third and hopefully final, gut-wrenching phase of valuation de-rating. Expect the S&P500 to decline decisively below its March 2009, 666 intra- day low. All hope will be crushed.
Our Ice Age thesis has been our roadmap for the macro events that we have witnessed over the last 15 years. Many have laughed at our views. But much to the chagrin of the cohorts of equity bulls in the industry, their beloved and supposedly cheap equities have become cheaper and cheaper. They will get cheaper still before this is over. Mutatis mutandis for bond bears as yields continue to slide.
You can just hear his demonic HAHAHA reverberate through his words right now.
(Excerpt) Read more at businessinsider.com ...
call me a cynic with a tinfoil hat but I do not believe the powers supporting obama and the collapse of the US will allow this to happen before he is re-selected.
So I am staying in the pool a while longer despite the floaters popping up all around
Well, Obama has told us he doesn’t pay attention to the daily gyrations of the stock market. So, no worries in Liberal Obamaland.
Not going to happen.
Throughout the Obama administration, the market indexes have been very carefully and invisibly manipulated, eliminating any risk of collapse or even too much volatility.
This does not disturb the big traders, because their interest in the markets is in dividends, not speculation. And because the more speculative traders have figured this out, they are refusing to trade. The wiser ones have slowly cashed out.
The actual manipulation is simple, if you have a few billion dollars, and the ability to buy and sell without anyone seeing the trades, which only the FED and US Treasury can do.
I agree. Who ever is holding the strings won’t let go. It’s become a national security issue almost. If it looks like O is going to lose badly, all bets are off.
I don’t know Joe Weisenthal or his track record. Everything I have ever read that he has written, has convinced me he was a stupid ass writing because he gets paid to write.
Any contrary opinions about the guy? Has he been right?
The powers that be will manage to cobble this train wreck together until Nov and after that brace yourself.
Some people are saying JPM is in deep doo doo, very, very deep doo doo.
2 Billion dollar loss? Drop in the bucket!
That's my expectations....that's why I said April 2013.
The Doc spoke with financial/metals analyst Harvey Organ this weekend to discuss the escalation of the European debt crisis, JP Morgans derivatives crisis, and the gold and silver markets.
Harvey believes that the panicked reactions of multiple federal regulatory agencies indicates that JP Morgans losses are likely much more critical and severe than the mere $8 billion lost in the IG9 tranche, and states the data indicates JP Morgan is unwinding a portion of its $50 Trillion in interest rate swaps.
Harvey fears that the losses on JP Morgans interest rate swaps could already be $100 billion, and COULD BRING DOWN THE WHOLE FINANCIAL SYSTEM OF THE WORLD!
Women and minorities to be hurt most......