Stock Market Investor Margin Debt Reaches New High

By SRSrocco Report. – Re-Blogged From http://www.Gold-Eagle.com

The world is standing at the edge of the financial abyss while most investors are entirely in the dark.  However, specific indicators suggest the market is one giant RED BLINKING LIGHT.  One of these indicators is the amount of margin debt held by investors.  What is quite surprising about the level of investor margin debt is that it has hit a new record high even though the market has sold off 2,500 points from its peak in February.

It seems as if investors no longer believe in market cycles or fundamentals. Instead, the Wall Street saying that “This time is different” has become permanently ingrained in the market psychology.  For example, it doesn’t seem to matter to the market that Amazon makes no money on its massive online retail business.  The only segment of Amazon’s business that made a decent profit last quarter was from its Cloud hosting services.

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Purchasing Power – In Silver

By Gary Christenson – Re-Blogged From Deviant Investor

We know:

  1. Federal Reserve and U.S. government policies devalue the dollar—down about 98% since 1913.
  2. U.S. government spending is out of control, increases every year, regardless of revenues, and shows no sign of plateauing or declining.
  3. Few people encourage balanced budgets and LESS spending. All government agencies, lobbyists, congresspersons, military contractors, and many corporations encourage MORE spending, and by necessity, more debt.
  4. Debt based fiat currency units “printed” almost without limit enable deficit spending.

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This Really Is The Everything Bubble: Even Subprime Mortgage Bonds Are Back

By John Rubino – Re-Blogged From Dollar Collapse

Record student loan balances? Check. Trillion dollar credit card debt? Check. Six tech stocks dominating the Nasdaq? Check. Subprime auto loans at record levels? Check.

All that’s missing is subprime mortgages and we’d have every bubble base covered. Oh wait, those are back too, just under a different name:

Subprime mortgages make a comeback—with a new name and soaring demand

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Market Volatility Continues To Increase

By Mark J. Lundeen – Re-Blogged From http://www.Gold-Eagle.com

I didn’t miss anything by skipping last week’s posting. The Dow Jones saw its latest correction bottom on March 23rd declining to -11.58% in the BEV chart below. Since then the Dow Jones has oscillated from just below -10% and up to the -8% BEV levels as bulls and bears alike wait to see what is coming their way.

So what’s next for the Dow Jones? Well, my thinking is the Dow Jones saw its last all-time high on January 26th, and in the three months that followed its BEV plot has developed a pattern of lower highs and lower lows.

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As a Matter of INTEREST, Talk of Inflation Fear, the Fed’s Perfect Unwind, Concern about Wages is ALL Economic Denial

By David Haggith – Re-Blogged From Great Recession Blog

The Federal Reserve is now hacking its own zombie recovery to death and eating it by reversing the actions it employed to create this artificially supported recovery. Each time the Fed unwinds its balance sheet, 10-year bond rates recoil, and the stock market dances along in countermoves and wild swings. The main theme of my blog has always been that the Fed’s centrally planned economic recovery dies as soon as the artificial life-support is removed.

Blinded by economic denial because they are evangelists to the Fed’s religion, market pundits are finding any rationale they can to avoid connecting the Fed’s Great Unwind with these huge swings in long-term interest rates and the obviously corresponding counter-swings of the stock market. For those who have eyes to see, however, it should be clear that the world’s largest bond and stock markets are shuddering as the supports are removed.

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Trump Will Be ‘Fall Guy’ for Fed’s Mistakes

By Rob Williams – Re-Blogged From Newsmax

Peter Schiff, the chief executive of Euro Pacific Capital and financial commentator, said President Trump will end up getting blamed for market and economic turmoil caused by the Federal Reserve’s misguided policies.

That means Trump will lose the White House in 2020, and be replaced by a left-wing candidate who will expand the government’s role in the economy, Schiff said.

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Stock Selling Unleashed!

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling.

As a contrarian student of the markets, I watched stocks’ recent mania-blowoff surge in stunned disbelief. On fundamental, technical, and sentimental fronts, the stock markets were as or more extreme than their last major bull-market toppings in March 2000 and October 2007! I outlined all this in an essay on these hyper-risky stock markets on 2017’s final trading day. The ominous writing was on the wall for all willing to see.

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