With interest rates forced this low, the pension fund managers have been forced to double down (befittingly, a Vegas term) into stocks. They lost a shitload of money in the first crash in both equities and real estate, and no longer have nearly enough money to cover their obligations to the pensioners (pension funds and 401-k’s are the only remaining store of wealth of the former middle class, and as Matt Taibbi so vividly put it, they are the remaining prey for the blood funnel of the vampire squid).
And so, since pension fund managers are dealing with OPM (other people's money) and want to hold onto their lucrative jobs as long as possible, they are betting it all on 36 red on the wheel of fortune. When the next crash hits, the pensioners will be totally wiped out. Additionally, the banksters will naked short the equities at that point, which is technically a felony analogous to counterfeiting, but they own all the branches of government now, so no one will enforce it. The result will be that they will make a huge profit on the second crash coming out of the hide of the formerly middle class.
The net result will be a huge, deflationary collapse into a depression that will make the early 1930's look like a walk in the park. This will enable the banksters to buy up all the remaining assets for pennies on the dollar. The reason that Ilargi and Stoneleigh have been scornful of the hyperinflationistas is that the Ponzi "credit money" is so much greater in sheer volume than fiat (paper) money, that it is quite impossible for the central banks, including the Fed, to "print" fast enough and get the new money into the system with any velocity, to compensate for the collapse.
Stoneleigh says that we will probably go into hyperinflation, meaning that dollar currency will be worth next to nothing, in 2-5 years, and after the credit collapse is complete. Ilargi says that the collapse will be so devastating that it is difficult to predict what the financial landscape will look like afterwards. Sort of like trying to navigate in a city you have lived in your whole life after it has been carpet bombed.
More Here..
BLAH
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BLAH.................
Another story among THOUSANDS about something that will probably never happen
Ok, where are all the dingbats that are going to tell me to buy silver and gold,LOL
It's your Funeral.
Delete456 please Please Please Please, KEEP YOUR MONEY IN THE BANK, ALL OF IT, PLEASE PLEASE LEAVE IT THERE IT IS SAFE I PROMISE, BANKS HAVE BEEN HONEST FOREVER, NO WAY THEY WOULD EVER DO ANYTHING WRONG, PLEASE PLEASE PLEASE LEAVE ALL OF IT IN THE BANK I BEG YOU TO.
ReplyDelete4:56 put your money where your mouth is and show us the link that NOTHNG WILL HAPPEN EVER..
ReplyDeleteReally, how hard will it be to print several million 500 or 1,000 dollar bills, or even 100 dollar bills? In the meantime they can keep churning out worthless dollar bills that will have no use to anyone.
ReplyDeleteGroceries are sure going up....and gas prices...and the us dollar is tanking....I think this is called INFLATION...Lindsay Williams states that by the end of this year...people will be very broke because oil is going to go up to $150 per barrel. I think I'm going to have to ride my horse to work and carry a pooper scooper. Because ALL SHI#@ is going to hit the fan very soon. Stock up on canned goods you have nothing too loose if nothing doesn't happen but if it does...you have saved alot of money at the grocery stores.
ReplyDeleteIt is really beautiful.
ReplyDeleteAll the stupid people can keep their money and stocks placed as is. Then one day without any notice: POOF!!
Bye bye stupid person.
I'm looking forward to utter impoverishment of stupid people. We need to get rid of these animals.
One more thing. People who have taken care of themselves and their families properly have this great luxury: when the chips fall they don't have to give a rats ass about stupid people.
please please please leave your money in the banks, they are honest and never cheated anyone
ReplyDelete5.59 its not hard to print dollar bills. Many kids now photocopy them and use them and play dumb. The streets are now flooded with faker of our fake fiat money.
ReplyDeleteI am living the collapse right now, my unemployment will run out in two weeks and then we will on one income. I am glad I started to stock up on necessities to some extent two years ago. No matter if it does get horrible we have planned for the different stages all the the way down to tent living. I do not relish that but if it blows this economic gangsterism to hell then fine lets go.
ReplyDeleteThe great majority of people have absolutely no clue what is going on and will be hit very hard. But then it is their own fault for being too lazy to find out.
let me see
ReplyDeletei have 50 thou in gold food coal for heat
and have a job right now
thank god ive prepared
but then again many like myself see it coming
1 in ten have been prepareing for years
thats alot of crazys soon will see
theyve been wearing the tin foil hat
and me well ill still be partying like its 1999
Carpet Bombing !
ReplyDeleteBoy; do I like the sounds of that !
I hope they start with South Florida !
Funny how this story disappeared..I clicked on the link and the story is gone.
ReplyDeleteWonder why?
The direct link doesn't work at the moment.
ReplyDeleteBack track a little to the blogger's main page:
http://theautomaticearth.blogspot.com
Then if the article isn't still at the top of the page (most recent) then look along the left side through the archive listing and click on March 22, 2010: "The Incredible Lightness of the S&P 500".
The article is not gone. I merely posted a new one on the front page. Here's the link:
ReplyDeleteThe Incredible Lightness of the S&P 500
For crest sake, WTF is it with you super "financial" wizards, its that damned BOOYA clown on CNBC and the rest of the talkin heads that push stocks all damned day. It’s the screwball day traders that buy and sell every second to some other jerk back and forth.
ReplyDeleteIt’s that Larry dude that pimps Goldie and than plants seeds, its the bald headed pig tailed half wit with his puts and shorts crap. Its that damned Ben keeping rates at 0% for the banks while they buy treasury’s at 3%, charging 30% on loans if you can even get one and giving back 1 or less % on savings. Its the GOV buying up sub primes to keep freddie and fanny from going under.
Its The Gov BSing on the CPI figures, to keep from paying COLA and telling people how there's NO Inflation , maybe you 6 or 7 figure a year type think there's no inflation, but than why would you, unless that yacht goes from 2 mil to 3 mil.
Teenagers! Geeeeshhh.... always so much drama. Awfullizing and catastrophizing.
ReplyDeleteWhy are you guys talking about money and banks and other stuff just stop its really anoying! Thank ya.
ReplyDelete