Click here for Martin Armstrong’s latest blog post entitled Shadow Banking dated November 30, 2013.
From the post:
The typical shadow banking system includes securitization vehicles,
asset-backed commercial paper (ABCP) conduits, money market mutual
funds, markets for repurchase agreements (repos), investment banks, and
mortgage companies. However, the shadow banking area has grown in
importance to rival traditional depository banking and was a primary
factor in the subprime mortgage crisis of 2007-2008 and global recession
Good post by Reggie Middleton on the Greek debt restructure and bailout. It is a smaller picture of the larger picture of this cycle: a wholesale wealth transfer. This is the current mode of operation going on around the world, especially Europe. It will eventually hit the US in some form (higher taxes, deflation or hyperinflation or all of the above), be prepared. The only positive thing that the US has, is the printing press. But that just means the Greek Tragedy for “advanced countries) takes 9 acts instead of 5…..but the end is the same. Massive transfer of wealth.
The news of the potentially greater financing needs comes at a sensitive time for the country. Many in Europe, particularly in Germany, are losing their patience and there has been increased talk of the country leaving the common currency zone. Over the weekend, German Finance Minister Wolfgang Schäuble reiterated his skepticism of additional aid to Greece. “We can’t put together yet another program,” he said on Saturday, adding that it was irresponsible to “throw money into a bottomless pit.”
Click here for Martin Armstrong’s latest blog post entitled How Empires, Nations, and City States Die-We Seem To Be Right on Schedule dated October 7, 2013.
Great interview with Jim Willie over at usawatchdog.com. It’s about 45 minutes. Click here.
Jim Willie suggests that the interest rate bond bubble has popped. And there is a major move behind the scenes to keep the NY Banks from imploding from these losses and moving into other markets.
Click here for Martin Armstrong’s latest blog post entitled DEBT-PENSION CRISIS- Fuel behind a Stock Rally dated September 30, 2013. Very Important read!
Click here for Martin Armstrong’s latest blog post entitled Confiscation of Pensions dated September 9, 2013.
groovygirl says: even though Syria may or may not happen, Martin illustrates an excellent point. Some crisis will cause our creditors to stop buying US debt and sell what US debt they are holding as a consequence of ridiculous US foreign policy. Since you, individually, can not change US foreign policy, make sure your retirement money is protected.
Click here for a link to the most recent Thunder Road Report. It is about 58 pages. Good charts. This report comes from Europe. This issue focuses on the effect or non-effect of Central Banking actions around the globe. They also have a section on inflationary deflation.
The SEC is issuing warnings about the money market fund industry.
There are a few conclusions to draw here.
- This was a very quiet warning on July 17th. Quiet means we want to have the record we warned you, but we don’t want to start a panic.
- Too late, gg suspects we start to see the “quiet panic” around August 7th? Just a guess
- Money Market Funds collapse because investors need liquidity to cover another collapsed market that is underwater in debt. (i.e. they do not have the capital, assets, or even cash flow, to cover the debt needed to continue business or sustain the market.) This is the way the mortgage crisis moved to completely freeze credit in the US market in 2008-2009 and thus effected every business and market in the US and around the globe.
- Money market funds are used by all business like a revolving credit card. If it drys up, business and banks must be bailed out to keep normal daily business going, for things such as payroll.
- If those businesses do not have enough cash to hold them for six months to a year without adequate cash/credit, they go bankrupt, and lay off employees. We saw this in 2008-2010.
- There will be no bail-out this time around. Your funds will disappear, it will be a bail-in. If you remember, money market funds delayed cash withdrawal requests for up to 6 months the last time around. The only reason it was only 6 months….bail outs, free loans from the government to keep the game going and the sheeple asleep.
- Notice the time line from the 2007 crash. Stocks/housing market start to decline in fall of 2007, fully clear to all in 2006 that it was coming/in process. Contagion starts to be felt by everyone and all markets by 2008-2009 as major companies/banks go under or require major bailouts. This doesn’t happen over night. It just seems to because the insiders’ panic is not announced or acknowledged or covered-up.
- We do not know what the catalyst will be this time, but we have several options: muni bond markets, continued European debt implosion, slowdown in China, derivatives from any one of these markets, war/terrorism/Arab Spring, change in law for one of these investment markets, old derivatives from 2008 mortgage crisis that have not been realized. Take your pick.
- All of the above-mentioned markets (actually all markets tied to debt/margin) are VERY FRAGILE. They will all be severely effected by whatever the catalyst is this time around. That will make this coming collapse in 2015, as suggested by Martin Armstrong, much worse than 2008.
Beware and be prepared. Groovygirl is not suggesting have absolutely no cash in money market funds, just don’t have it all in that type of investment. You are responsible for making the decisions for your own investments.
Side musing: regarding Martin Armstrong’s 2007 turning point. Groovygirl thought it very interesting that major national security websites and data systems were hacked in 2007. Just now being admitted. This could be point the history books point to as the fall of the American Empire (foreign hackers are the Barbarians at the Roman gate) and the official start of the new war: cyber warfare. very interesting. Although it was announced that the Pentagon was hacked. Apparently several other private and government infrastructure sites were hacked including electrical and water infrastructure and NASA, as well as national security sites. The hackers were downloading information and able to view current information for six months before discovery. And they aren’t even sure if it was all the Chinese. This is the new war.