Former Reagan Administration Official Is Warning Of A Financial Collapse Some Time ‘Between August And November’

By Michael Snyder – Re-Blogged From Freedom Outpost

“Decades of exceedingly foolish decisions have made the greatest economic crisis in American history inevitable, and when it fully erupts the pain is going to be absolutely off the charts.”

If a former Reagan administration official is correct, we are likely to see the next major financial collapse by the end of 2017.  According to Wikipedia, David Stockman “is an author, former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.”  He has been frequently interviewed by mainstream news outlets such as CNBC, Bloomberg and PBS, and he is a highly respected voice in the financial community.  Like other analysts, Stockman believes that the U.S. economy is in dire shape, and he told Greg Hunter during a recent interviewthat he is convinced that the S&P 500 could soon crash “by 40% or even more”…

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The Next Crisis Is The Mother Of All Counter-Party Risks (Part 2)

[This is a long article – part valuable information and part rant. -Bob]

By Gijsbert Groenewegen – Re-Blogged From http://www.Gold-Eagle.com

In Part I I explained the counter-party risk that is all around us – and will come to the fore in the next financial crisis. In this second part I reflect on the rescue operations of the Fed following the 2008/2009 recession and the following QEs and ZIRP policies that have led to diminishing returns and that will ultimately weaken the US dollar: the biggest counter-party risk of all counter-party risks.

Addendum 8 – CDS, Credit Default Swaps. Ultimately it should be considered that when we encounter these systemic events that it will impact the underlying currency.  For example when the pension underfunding gets so problematic that the Government has to print more money to meet and rescue the obligations the counter-party risk will be reflected in the devaluation of the currency or the loss of purchasing power, the goods that you can buy with the same amount of nominal money will tumble.

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Next Financial Crisis Will Come From Europe!

By Chris Vermeulen – Re-Blogged From http://www.Silver-Phoenix500.com

A financial system stability assessment report from the International Monetary Fund (IMF), about one bank in Europe identified Deutsche Bank AG (NYSE: DB) as the TOP bank that poses the greatest systemic risk to the global financial system. Systemic risk was identified as a major contributing factor in the ‘financial crisis’ of 2008. This is essentially the risk of contagion by the failure of one firm leading to failures throughout its industry.

On February 24th I talked about DB (Deutsche Bank) as the next major bank to fail. Since then price has plunged 31% and it’s likely headed much lower yet.

IMF: The Top Bank That Poses Global Financial Risk Is DEUTSCHE BANK! Continue reading

It’s A Small Club

By Bill Holter – Re–Blogged From http://www.Gold-Eagle.com

For many years we have warned of the dangers of derivatives.  We were laughed at leading up to the 2008 financial debacle when Lehman broke and nearly took the entire system down.  That turned out to be no laughing matter and here we are again at exactly the same situation where derivatives threaten to melt the financial system again.  The difference now of course is the “saving ammunition” has already been spent where sovereign treasuries and central banks have destroyed their own balance sheets.

Two weeks ago, the Fed announced a “48 hour stay in place” provision for collateral of any derivative contracts where the big banks are involved.   http://www.bloomberg.com/news/articles/2016-05-03/fed-expected-to-drag-hedge-funds-into-plan-to-halt-next-lehman  The idea here is to prevent collateral being pulled by the survivor for 48 hours should the bank counterparty become insolvent.  This will give the Fed a window of time to get the fire hose of liquidity out and reliquefy a large bank’s balance sheet before they can break the derivatives chain.  But what does this really do?  Does it make derivatives any more sound or does it really just add more risk to central bank balance sheets and thus the currencies themselves?  ( Derivatives Crisis Of Banks…Worldwide )

It is very important to understand just how important derivatives have become.  Derivatives have been used to push, pull, manhandle and outright price many global markets.  They have been used to paint a picture as “proof” the Alice in Wonderland markets are in fact real.  Not even one single market can get out of control because “truth” anywhere will lead to TRUTH everywhere!  Even one single market left alone to Mother Nature will lead to questions that cannot be logically answered.

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