A couple of weeks ago I opined that were you caught “long” equities you’d likely get another opportunity to unload them at reasonable prices before all hell broke loose.\u00c2\u00a0 It appears that yesterday was that opportunity in the morning, as we’re now trading\u00c2\u00a0seventy S&P points, or\u00c2\u00a0about\u00c2\u00a06.6%,\u00c2\u00a0<\/strong>below where we were\u00c2\u00a0yesterday morning<\/strong>.\u00c2\u00a0 You’ve once again had your 401k and IRA whacked by the incessant lies and scams promulgated by your government and the “financial wizards” who seduced you back into the markets with half-truths and siren songs.<\/p>\n The market opened this morning down 300+ DOW points and the VIX slammed through the 40 level.\u00c2\u00a0 There will clearly be bounces along the line but as things stand right now\u00c2\u00a0the underlying financial conditions have not changed one iota from where they were in 2007.\u00c2\u00a0 Instead of allowing those who were overlevered to go bust and have capitalism do what it does best – creative destruction of the foolish – we instead took private\u00c2\u00a0effectively-defaulted\u00c2\u00a0risk and transferred it to the public balance sheet.<\/em><\/strong><\/p>\n But that’s a scam – it simply moves the deck chairs on the economic Titanic, because governments can only raise funds through two means: They can borrow\u00c2\u00a0money (increasing leverage) or they can tax it (decreasing consumption or investment by private parties.)\u00c2\u00a0 The obvious “borrow it” choice was made here in the US and elsewhere,\u00c2\u00a0but just as with private borrowing government borrowing has limits and we’re now running into them, and deficit spending creates\u00c2\u00a0false\u00c2\u00a0demand signals in the economy that must eventually end<\/em><\/strong>.<\/em><\/strong><\/p>\n Recognition that you’ve been scammed can be a truly ugly thing.\u00c2\u00a0 It\u00c2\u00a0is usually\u00c2\u00a0violent at an emotional and financial level, and more often than one would like it has a habit of being violent in the physical sense as well.<\/p>\n Well, America (and the world), you’ve been scammed by the financial institutions and governments for the last 30 years.\u00c2\u00a0 2008 was the first spasm of recognition but was short-circuited by…. you guessed it…. even more scams.\u00c2\u00a0 Rather than demand truth and an end to the games the American consumer lapped up the frauds and schemes of the politicians on\u00c2\u00a0both sides of the aisle<\/strong>\u00c2\u00a0who conspired with the financiers to rip you off once again.”<\/p>\n Don’t believe me, here’s another noted economist warning you!! You’d better read this, PLEASE!<\/p>\n “We\u00e2\u20ac\u2122ve been warning for weeks now that the Fed would disappoint with its September meeting. And boy did it.<\/p>\n As forecast, the Fed didn\u00e2\u20ac\u2122t announce QE 3. In fact, it didn\u00e2\u20ac\u2122t announce\u00c2\u00a0any<\/em>new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.<\/p>\n On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Fed\u00e2\u20ac\u2122s implementation of QE lite which to date has been about $300 billion give or take in scope.<\/p>\n Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, \u00e2\u20ac\u0153there are significant downside risks to the economic outlook.\u00e2\u20ac\u009d<\/p>\n Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing\/ printing. This time around, the market senses that the Fed has disappointed and that the Fed\u00e2\u20ac\u2122s move is largely symbolic more than anything else.<\/p>\n The end result of this: the market is Crashing just as warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.<\/p>\n It\u00e2\u20ac\u2122s just triggered again\u00e2\u20ac\u00a6 which means that today\u00e2\u20ac\u2122s sell off is JUST the beginning of what\u00e2\u20ac\u2122s coming.<\/p>\n Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.<\/p>\n We\u00e2\u20ac\u2122re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.<\/p>\n Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What\u00e2\u20ac\u2122s coming is going to make 2008 look like a joke.<\/p>\n Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It\u00e2\u20ac\u2122s going to be a dark dark time.”<\/p>\n OK, now I know this is a lot of technical financial mumbo jumbo, (which they try to use to confuse you!) and if you don’t follow the financial markets, it’s hard to understand, \u00c2\u00a0BUT, words like “lose everything” and “systematic failure” everyone should understand.<\/p>\n You have to realize, we’re broke and the bill is due and YOU are going to be the one the government looks to to pay it! Wake up, please.<\/p>\n Ok, no more for today as I don’t want to overwhelm you, if you don’t have a lot of money in some house of cards financial institution, go buy some extra food. You won’t be sorry.<\/p>\n Take care, God Bless and please, really think about what’s going on out there. Stop trusting people or institutions like “banks” just because you “always have”. Sorry to be so blunt but time is really running out. We (YOU) don’t have the luxury to ignore the facts anymore. Remember you have nothing to lose by taking precautions but everything to lose if you don’t!<\/p>\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Well today’s the day, about 26 chunks from an old satellite totaling 300+ pounds \u00c2\u00a0will smash into our planet sometime this afternoon. NASA can’t seem to tell us where until about 2 hours before it hits, and then they can … Continue reading The Fed Disappointed\u00e2\u20ac\u00a6 The Great Collapse Is Here<\/h1>\n
![\"\"](\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2011\/09\/GPC-9-22-11.gif\" "\\"GPC")
<\/a>We\u00e2\u20ac\u2122re just getting started here. Today we got a confirmed SELL on the proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.<\/p>\n