stock market

stock market

Is the Stock Market Ready To Collapse?

1d ago
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Podcast Summary For more on this blog post click here http://smaulgld.com/stock-market-ready-to-collapse/ 0:00-4:14 Introduction 4:14-11:49 The housing market is not improving. House prices are too expensive, sales volume is down and the labor market is poor. The housing "recovery' has been a media event ever since it never happened.Attentions of the economic recovery cheerleaders have shifted from housing to the labor market.The Producer Price Index was up yet the Fed is complaining that we don't have enough inflation. More inflation just means prices go higher and doesn't lead to more economic activity. Indeed, higher prices leads to less. If prices rise, people spend and consume less and since the U.S. economy's GDP is 70% consumer spending, rising prices will make the GDP worse. Non farm payroll numbers were touted as success even though 500K+ full time jobs were lost. Discussion of how the Fed and media brush aside negative economic news and insist the economy will accelerate in the coming months. 11:49-13:56- discussion of Janet Yellen's view on the Fed's role in bursting bubble. None. They can only inflate them. Yellen mentioned, however, that there may be bubbles in bio tech and social media stocks. 13:56-18:26 discussion of the tenuous position of the stock market with sky high valuations and no underlying fundamentals to support them. The stock market could do down on a moment's notice and stay down because the companies are not doing that well and will do worse after a stock market crash, so a swift rebound may not happen even if the Fed attempts to reflate. The Fed appears to be trying to talk down the market a little perhaps to avoid a larger correction or crash.Discussion of the many ways the Fed manipulates markets. 18:26 -23:25 Discussion of how the U.S. is trying to protect the dollar by cutting out QE and threatening to raise interest rates. The dollar demise won't be a collapse but a slow decline. 23:25-25:00 Discussion how the State Department did not include the Ukraine plane crash in its daily press briefings. The Fed generally gives an accurate depiction of the state of the economy but too often gives overly optimistic projections Discussion of how the press downplayed the default of the holding company of the largest Portuguese bank and the collapse of the fourth largest Bulgarian bank. 25:00-26:45 there will be cascading effects from this default. Reuters reported that Portugal Telecom is out $1 billion because of the default and lost a large stake in a merger as a result. There will be more effects to come. One default leads to many defaults. The media is reluctant to give a realistic assessment of the state of things. 26:45-30:20 Discussion of the incessant negative gold media coverage. Why those in power do not want gold or silver to rise, especially in light of geo political risk as it is a threat to the dollar. The story of the day HAD to be about weakness in gold. 30:20-35:48 discussion of what the Fed sees as risks to their growth forecast. Discussion of Elizabeth Warren's "grilling" of Janet Yellen. Discussion of the difference between REAL questioning of the Fed, like Ron Paul vs the faux populism fake theater questioning of Elizabeth Warren. Discussion of the Fed's phony transparency exemplified by their new press conference format. They voluntarily tell the truth when they feel like it which is like lying. 35:48-41:22 Discussion of the housing "recovery" being removed from the overall economic "recovery" talking points -- even though housing was supposed to be the basis of the economic recovery. The Fed still denies inflation exists with Yellen calling it "noisy" and insisting that the Fed maintain "hoily accalmaudaytif paulicy". Discussion of inflation- only salt hasn't gone up. Discussion of "averaging" inflation targets and how traders parrot the Fed's talking points. 41:22-46:10 Market participants certainly know they are participating in a farce. When does the market stop pla...