Commentary: 10 bubbles blowing into biggest crash in 30 years
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch) — Yes, 2014 is an absolute total disaster just waiting to ignite. In “Doomsday poll: 87% risk of stock crash by year-end”
we analyzed 10 major crash warnings since early this year. Since then,
more incoming bogies raced across our radar screen. Ticking time bombs
from Congress, the Supreme Court, sex, carbon emissions, Big Oil, NSA,
IRS, Tea Party austerity. Relentless. Mind-numbing.
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So many are tuning out. Denial. Truth is, bubbles are everywhere. Ready
to blow. The evidence is accelerating, with only one obvious conclusion:
Max 98% risk at a flashpoint. This 2014 crash is virtually guaranteed.
There’s but a narrow 2% chance of dodging this bullet.
Here are the 10 bogies, drones targeting markets, stocks, bonds and the, global economy:
1. Bubble With No Name Yet triggers the biggest crash in 30 years
All three of the big worldwide financial bubbles that have blow up in
the last three decades have “been fueled by the Fed keeping policy rates
below the nominal growth rate of the economy far too long,” says global
strategist Kit Juckes of the French bank Societe Generale.
The three bubbles: The Asian Bubble in the early ‘90s, Dot-com Bubble of
the late ‘90s and what Juckes calls the Great Big Credit Bubble that
triggered the 2008 Wall Street meltdown.
Juckes warns that we’re now trapped in the fourth megabubble fueled by
the Federal Reserve in the last 30 years, since the rise of conservative
economics. He calls this one, the Bubble With No Name Yet. OK, we
invite you to send in your nomination to name the new bubble. But
whatever you call it, do it fast, it’s close to popping, like the Asian,
Dot-com and Credit crashes the last 30 years.
2. Marc Faber’s Doomsday warning on Bernanke’s disastrous QE scheme
Faber laughs at Bernanke’s remark that the economy would be strong
enough later this year so he could take his foot off the gas, that is
begin “tapering, or scaling back it’s stimulative quantitative easing
(QE) program later this year.” Yes, laughed.
According to BusinessInsider.com, “embracing hyperbole,” Faber
“suggested that QE would basically be a part of everyday life for the
rest of our lives,” adding that back in 2010 in the early days of
Bernanke’s disastrous experiment, Faber warned “the Fed’s headed for
QE99.”
3. Economy is already crashing, GDP will get even worse in 2014-2016
Over at Huffington Post Mark Gongloff warns: That “dramatic downgrade of
U.S. economic growth in the first quarter revealed the economy’s
lingering weakness, exposed the folly of Washington’s austerity
obsession and slapped the Federal Reserve’s newfound optimism right in
the face.” And with politics deteriorating, it’ll get worse.
Gongloff piles on the bad news about 2014: GDP “grew at a 1.8%
annualized pace in the first quarter ... revising down its earlier
estimate of 2.4% growth ... The first quarter’s dismal growth was at
least better than the 0.4% GDP growth of the fourth quarter of 2012. But
it was still far from healthy, and economists don’t see it getting much
stronger any time soon.” And that’s real bad news for the markets going
into 2014.
4. Precious metals: ‘Going dark! Economic cycles point downward’
That’s the headline flashing red warnings. After reviewing 20 cycles
tracked by 20 other experts, GoldSeek.com concluded: “There are many
cycles that suggest a stock-market correction or crash is near ...
Preparation is important. You still have a little time remaining before
the ‘window’ closes!”
Traders heading for the exits: “Unsustainable trends can survive much
longer than most people anticipate, but they do end when their “time is
up, at the culmination of their time cycles.” They analyzed more than 20
cycles: “Nearly unanimously point to tectonic shifts in the months and
years ahead.”
Yes, they hedge on the timing but the ticking time bombs are loud,
close. And “the precious-metals crash, starting in April of 2013, was
the first warning of what is coming globally.”
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