Tuesday, June 4, 2013

How bad will the next market collapse be?

First of all the markets are all so interconnected that it will be universal. When it happens that may seem overwhelming; but, the response will also be coordinated and the reset will come fairly quickly. Stay calm when it happens.

Yahoo - AP - World stock markets fall on Fed uncertainty. The article is from yesterday and the point is that the mere thought of the Federal Reserve cutting back on pumping money into the economy effected stocks worldwide and not just in the United States.

Yahoo - CNBC - Warning: 'Prepare' for Commodity Supercycle End. This crash will effect all asset markets.

Huffington Post - The World Economy's a Ticking Time Bomb (and the Fuse Is Lit). A very well respected economist is about to tell us how bad things are going to get. You should read this article. If you prefer, I have a video of him. Yahoo - CNBC - Are We Heading for a New Financial Crisis?

Forbes - Great Reflation Produces Mirage Of Recovery In Housing. Basically, the "improvement" in the housing market is false.

CNBC - El-Erian: Walk, Don't Run From Equities Risk. All asset classes are going to be effected.

I want to talk about what got us here. The good professor from England summed it up rather nicely. This is not capitalism, this is insider traderism. A system that allows more money to be made when companies do poorly is going to lead to bad decision making. He said it in economist terms; but, the result is the same.

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