ARMSTRONG: Major Central Bank May Fail Next Year

Many analysts are fearful of an impending downturn as early as next year. In an exclusive interview with FS Insider, legendary forecaster Martin Armstrong of ArmstrongEconomics.com explained his outlook on the global economy and markets, including a bold call that, as early as next year, “we’re looking at a central bank that can go bankrupt” — a topic that will be the focus of a July conference in Frankfurt.

Armstrong is a unique, contrarian thinker and has made a number of accurate forecasts over the years, especially since we’ve been speaking with him on our podcast. A key theme of his analysis is that economic growth is likely to remain stagnant as nations around the globe struggle with large debt burdens. However, rather than calling for a collapse in the dollar and the US stock market, as many bears have long predicted, Martin has taken the opposite view, focusing instead on the needs of institutional investors to earn yield by increasingly allocating capital into stocks and highly-rated corporate bonds, which helps to fuel the stock market higher. Continue reading

NYSE invokes Rule 48 to curb early swings

Circuit breakers, a plunge protection team (that either doesn’t exist or is doing a very poor job)… and now Rule 48. One has to wonder how many more tricks are in the bag. Perhaps that was the last one, perhaps there’s many more. Even if there’s more, it won’t stop the ever-strengthening avalanche.

 

The New York Stock Exchange on Tuesday again invoked measures meant to promote an orderly opening as the US stock market endured heavy selling in early trading.

In contrast to the wild trading of Monday, August 24, when the exchange also invoked so called Rule 48, activity on Tuesday was mostly orderly in spite of declines, market participants said.

But some complained that it took too long for some stocks to open, which is likely to keep attention on the rule. The S&P 500 fell 3 per cent. Continue reading

Harbinger Man: ‘The time is now to prepare’

 

Author and Bible teacher Jonathan Cahn says he has been so swamped with questions and concerns about the looming end of the Shemitah year on Sept. 13 that he can’t answer them all.

“We have been deluged with people calling, emailing, asking questions from all over the country, wanting to know what’s happening. So we decided to put out a video,” Cahn told WND via email.

Continue reading

Disaster Is Inevitable When The Two Decade-Old Stock Bubble Bursts

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Six years after the Global Financial Crisis, the U.S. stock market continues to soar to new heights with nary a pullback or correction. In this piece, I will explain why the stock market is experiencing a new bubble that is actually another wave of the bubble that has existed since the mid-1990s.

A two-decade old bubble? Yes, you’ve read that correctly. Most people will consider this assertion preposterous, but the facts don’t lie. Though the U.S. stock market has been experiencing a bubble for two decades, it will not last forever. I believe that the ultimate popping of this bubble will have terrifying consequences for both investors and the global economy that is tied so closely to the stock market.

The SP500 stock index has more than tripled since its low in 2009, but that doesn’t mean that we are out of the woods. On the contrary, this is the calm before the storm. Continue reading

The Failure of the American Perspective

World War III may well be underway just as surely as it was on 26 November 1941 when Japanese Admiral Yamamoto set sail for Pearl Harbor two weeks before the formal attack. Then, like now, Americans seemed blissfully unaware that their lives were about to change forever.

Now, it is even worse, as American arrogance assumes we will always be the world’s sole superpower. We tend to look at the world exclusively from our own perspective and that can be very dangerous. A variety of headlines demonstrate this, all of which assume American supremacy. One example, now obvious in hindsight, is when the President’s spokesman Jay Carney warned against buying and actually suggested shorting Russian stocks in light of U.S. sanctions on March 18. From the time of his comments until the end of the month, Russian stocks increased over 6%, far ahead of the U.S. stock market over the same period. Even as the Administration was warning against buying Russian shares, some very successful investors have recommended them. Continue reading

Billionaires Dumping Stocks, Economist Knows Why

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods. Continue reading