Stocks Have A Long Way To Fall

“Once the Treasury Secretary starts to pump the stock market, you know  there’s a problem” – James Anderson, Silver Doctors / SD Bullion

The Central Bank money printing and artificial suppression of interest rates over the last 10 years did a good job of deferring the financial and economic crisis that hit in 2008. But this “treatment” served only to cover up the problems. It did not directly address and fix the problems. In fact, the monetary and fiscal policies implemented globally stimulated a record level of debt and derivative issuance at a rate that far exceeded the nominal growth rate in GDP. The markets are telling us that the system has once again exceeded the limits in its ability to “support” the amount of liabilities accumulated over the last 10 years.

Silver Doctor’s James Anderson invited me onto his podcast to discuss the Fed, the stock market, the U.S. dollar, housing, Tesla/Elon Musk and, of course, gold. There’s a humorously edited video clip featuring Elon Musk at the end (it’s hilarious):

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If you are interested in ideas for taking advantage of the inevitable systemic reset that  will hit the U.S. financial and economic system, check out either of these newsletters:   Short Seller’s Journal  information and more about the Mining Stock Journal here:   Mining Stock Journal information.

7 thoughts on “Stocks Have A Long Way To Fall

  1. If you see a long term chart of the S&P500 plotted on a linear scale it’s looking really frightening. What brutal kind of bubble have they created?! Even the .com and housing bubble look minuscule against the 2018 monster

  2. Citi down 14 trading days in a row. Something shitty in the Citi ?
    I think we just crossed the line and come Wednesday morning the
    P.P.T. will be forced to activate the circuit breakers.
    The Chinese and Russians have been noticeably absent from the Bond
    auctions. The snake is now eating it’s tail and will soon enact another
    bail out. Yes the masters of finance have finally pulled off the ultimate
    Thelma and Louise.

  3. For Gold on futures market, its a short covering, there is no buyers. ( as of 12/18 )
    Look at Producers Merchant Short and Managed Money Long on Disaggregated Cot report : they don’t move compare to Managed Money Short and Swap Short since 3 weeks.
    This means that Producers Merchant Short are only selling on Managed Money Long and not according to inflow outflow of physical to hedge.
    So they have nothing to do in commercial category.
    Producers Merchant Short can be renamed to “Manipulation category”

  4. Dave, some say pension funds bought much of the “cheap” stocks today (Wed.) in year-end book balancing. Though a few of them may have been, or are, sitting on some cash, in these low volume, illiquid holiday markets, these few might see today’s record 1000+ Dow move and reason that a good short term bottom is in. The rest might be nursing their wounds and even liquidating on these rises. But as volatility grows, accumulated mass must fling the last drops of paint off the pig.

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