This bull market has been going since October 2011 with a slight break in Dec.2011 and June 2012, while unemployment rises and the latest earnings season not fairing well with lowered analyst earnings projections.
I am in the camp that the U.S. stock market is being heavily manipulated. You have the U.S Fed chairman saying that they are holding off on QE 3, but they are lying and in the background they are injecting more printed money to prop up the stock market.
Who knows when this will happen (my guess within 5 years), but these 2 videos (Part 1,2) gives an idea and amplitude of the ripple effects of such a historic event.
Update: These videos were removed, YouTube removed the original author’s account. So, if you don’t think that YouTube is censoring for the Government you are wrong. I have subsequently found another user that have re-uploaded it.
China slowdown and probably more money printing by ECB and the U.S. Fed in the next little while. If more bad economic data comes out of the American economy, then markets will react negatively.
Gold is good for this uncertain environment as well as credit products (bonds) from emerging economies.
Three years into this supposed “recovery”, as the U.S. Government would have you believe. The American economy is really doing worse than when they started injecting printed money into the markets. The fact is the U.S is already in a “Depression”, there are many economist and statistics that have already proven this but mainstream media controlled by the government of course will not release this to the public.
The number is staggering how many households are on foodstamps and disability amid the recent news that the level of poverty today is at its highest since 50 years ago.
There are a lot of people suffering in the U.S.A, yet I still cannot believe the U.S Government continues to advance on its war plans into Iran. The truth is the politicians say they are pulling out of Iraq and Afghanistan, however that is the furthest from their intentions which is “occupation” of those countries and it is costing American taxpayers trillions of dollars.
6 quarters (1.5 years) of slowdown, so the IMF think it is bottoming (this view is too optimistic). I think there is more slowdown to go. One thing to remember is that when Europe’s and America’s economy slows, China manufacturing will slow, which means Chinese citizens losing their jobs.
If unemployment in China gets worse, then people spend less over there as well, affecting their domestic GDP. Now, we can how see high unemployment has affected the U.S economy, it may have the same effect in China.
Here is a great documentary on Quants. Those genius mathematicians that come up with financial products to be sold to investors. Some of the formulas they come up with are so complicated that the people that sell them don’t understand them.
The investors do not understand the consequences of these financial products as well. Well, heck even the Quants do not know the true extent of the consequences if these products react to unforeseen circumstances. Some of these products were responsible for causing the 2008 crash due to complicated credit default swaps and mortgage backed securities.
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