The Markets As A Whole Are Setting Themselves Up For A Massive Collapse In The Near Future.

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Jim Rickards is predicting that we could see a massive crisis in the next eight months.
In this excellent video presentation, Jim Rickards tell’s us that It is inevitable the next financial crises is six to eight months away and it will be triggered by a war between the US and North Korea. He still say’s one of the best way to protect your wealth preservation is through gold.

The stock market would have to drop as much as 40% to be fairly valued, says advisor

  • Part of the thesis is rooted in CIO Brad McMillan’s belief that the lofty levels of tech stocks seem reminiscent of the dot-com bubble.
  • “Take as much risk as you want now. But you should be aware that at some point the market is going to pull back,” he says.


CIO warns this year looks like 1999 from CNBC.

DANGER: This Major Warning Indicator Just Hit An All-Time Record, But This Is Truly Shocking!
As trading continues past the midway point of September, this warning indicator just hit an all-time recored, but this is truly shocking!
This Just Hit An All-Time Record!
August 19 (King World News) – Look at this stunning note from Jason Goepfert at SentimenTrader:

Consumers Are Confident That Stress Will Remain Low:
• A record percentage of U.S. consumers are confident that stocks will keep rising
• Financial conditions are about as pristine as they’ve been in 30 years
• The combination of high confidence with low stress has never been seen to this degree
With the latest release from the University of Michigan sentiment survey, it’s apparent that the average consumer has bought into the idea that stocks will continue to rise. It’s hard not to, when media reports suggest that stock prices should either rise because everyone is expecting a correction, or nobody is…
The Last Two Times This Happened Was in 2000 and 2007.
he stock market bubble is now so massive that even Goldman Sachs is getting worried.
Let’s be clear here: Wall Street does best and makes the most money when stocks are roaring higher. So in order for a major Wall Street firm like Goldman to start openly worrying about whether or not the markets are going to crash, there has to be truly MASSIVE trouble brewing.
On that note, Goldman’s Bear Market indicator just hit levels that triggered JUST BEFORE THE LAST TWO MARKET CRASHES.
This is a major warning that a Crash is coming. And judging from the following chart, it’s going to make 2008 look like a picnic.

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Canada flagged as hidden $14 trillion credit bubble stokes global crisis fears

The world’s top financial watchdog has uncovered $14 trillion of global dollar debt hidden in bank report ‘footnotes’

Meanwhile, The “Next Big Short” Is Quietly Blowing Up

Back in March, when we detailed the ongoing catastrophic deterioration in the US retail sector, manifesting itself in empty malls, mass store closures, soaring layoffs and growing bankruptcies – demonstrated most vividly by the overnight bankruptcy of Toys “R” Us, the second largest retail bankruptcy in US history after K-Mart – we said that “just like 10 years ago, when the “big short” was putting on the RMBX trade, and to a smaller extent, its cousin the CMBX, so now too some are starting to short CMBS through the CMBX, a CDS index which tracks the values of bonds backed by various commercial properties. They are betting against securities backed by malls in weaker locations where stores could close in quick succession, triggering debt defaults.”
We dubbed this retail short via CMBX the next “Big Short” trade, and others promptly followed.

In a subsequent post just a few days later, we underscored why the correct way to short the great retail collapse was not so much through stocks, but CMBX:

The trade, as we discussed before, is not so much shorting the equities where a persistent threat of a short squeeze has burned the bears on more than one occasion, but going long default risk via CMBX or otherwise shorting the CMBS complex. Based on fundamentals, the trade indeed appears justified: Sold in 2012, the mortgage bonds have a higher concentration of loans to regional malls and shopping centers than similar securities issued since the financial crisis. And because of the way CMBS are structured, the BBB- and BB rated notes are the first to suffer losses when underlying loans go belly up.

As we also noted, cracks had started to appear. As of mid-March, prices on the BBB- pool of CMBS have slumped from roughly 96 cents on the dollar in late January to 87.08 cents last week, index data compiled by Markit show.


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