Will A'Great Earthquake' Happen In Stock Market This Winter? The Elites Are Privately Warning about a Crash!

How to determine if $SPX is overvalued. You'll be shocked what I found… pic.twitter.com/OOPxRMA5vk

— Alastair Williamson (@StockBoardAsset) September 22, 2017

Traders run for the hills in consumer staples, real state, and utilities this week. pic.twitter.com/ygDQVMonY6

— Alastair Williamson (@StockBoardAsset) September 22, 2017

As the yield curve crashes to its flattest since 2007…the same level at which both of the last recessions started!! h/t zerohedge pic.twitter.com/86OH9qPE2Y

— Alastair Williamson (@StockBoardAsset) September 22, 2017

A rising share of Wall Street CFOs think this stock market is ‘bubblicious’

Wall Street stocks have been mostly on a record-setting uptrend and that has raised concerns from C-suite executives tasked with managing a corporation’s money, according to a quarterly survey conducted by Deloitte.
More than 80% of chief financial officers surveyed by accounting firm Deloitte said U.S. stock markets are overvalued, marking the highest level since Deloitte began conducting its quarterly poll about eight years ago.

Source: Deloitte

www.marketwatch.com/story/a-rising-share-of-wall-street-cfos-think-this-stock-market-is-bubblicious-2017-09-22
The Elites Are Privately Warning about a Crash

Stocks rose on a sea of liquidity & they may crash when that liquidity is removed. This is a warning to other elites, but it’s also a warning to you
But it’s not just El-Erian who’s sounding the alarm…
You’ve heard the expression ‘the big money’. This is a reference to the largest and most plugged-in investors on Earth. Some are mega-rich individuals, and some are large banks and institutional investors with a dense network of contacts and inside information.
When it comes to big money, sovereign wealth funds are at the top of the food chain. These are funds sponsored by mostly wealthy nations to invest a country’s reserves from trade or natural resources in stocks, bonds, private equity and hedge funds.
As a result, sovereign wealth fund managers have the best information networks of any investors. The chief investment officer of a sovereign wealth fund can pick up the phone and speak to the CEO of any major corporation, private equity fund or hedge fund in the world.

www.dailyreckoning.com.au/elites-privately-warning-crash/2017/09/22/
A Bitter Winter for U.S. Stocks

Giving Up the Fight

Yesterday, Toys “R” Us went broke.
The story is being widely discussed this morning, with the usual mainstream analysts telling us that the bankruptcy was “expected” and that the brick-and-mortar toy retailer was just “another victim of Amazon.com.”
That is not untrue. But there is an important nuance…
Artificially low interest rates allowed Wall Street hustlers – notably Mitt Romney’s Bain Capital, an investor in Toys “R” Us – to borrow heavily against the company.
Apparently, Bain didn’t use this money to build a better Toys “R” Us – strengthening its online presence to compete with Amazon, for example.
More likely, it used it as the Wall Street players always do: to pay themselves off.
Bonuses, fees, dividends – typically, the private-equity suits take the capital out of capitalism. They move it from the Main Street economy to the financial economy… leaving the poor retailer to struggle to survive.
Toys “R” Us gave up the fight yesterday.

Great Unwind

This returns us to our promised theme… the Bonner Doctrine… connecting the dots to make sense of the blur we all see.
We begin by coming back to Wednesday’s news. That was when Fed chief Janet Yellen confirmed the central bank’s plan to begin lightening its balance sheet.
After an eight-year buying spree of government bonds that ballooned the size of its balance sheet from $800 billion to $4.5 trillion, the Fed now says it’s going to go the other direction.
It has announced it will shrink its balance sheet at a rate of about $10 billion a month… working up to $50 billion a month next year.
If this is true, it represents the biggest turnaround in the history of finance. From the biggest bid holding up the bond market, the Fed is about to turn into the biggest ask pushing it down.
So let’s get this straight.
The Fed created $3.6 trillion in new money… and pumped it into the financial markets to buy bonds. (Lowering interest rates… stiffing savers… and making it possible for Toys “R” Us, and many others, to borrow heavily…)
This money was apparently responsible for the bull market on Wall Street, boosting the Dow threefold.
It also made it possible for the federal government to add $10 trillion in debt over the last 10 years. Politicians did not have to make any tough choices or difficult compromises; they just had to borrow at the low rates the Fed was creating.
And now, after so many years of ultra-low interest rates… and easy credit from the Fed…
…the whole thing is going into reverse.

bonnerandpartners.com/a-bitter-winter-for-u-s-stocks/
 

Russell 2000 Reaches New Record High …as 2017 earnings expectations hit year-to-date lows…

And yes, we know financials are a major driver of the Russell 2000… so here’s some more humor…

www.zerohedge.com/news/2017-09-22/friday-humor-russell-2000-reaches-new-record-high

S&P Says China's Downgrade Won't Have Direct Impact On Sovereign Ratings Elsewhere Other Than Hong Kong

— LiveSquawk (@LiveSquawk) September 22, 2017

Theresa May calls for a 2 year exit strategy from the EU.  Household wealth hit an all time new high, but there is one catch, the majority of it is in the stock market and the top 10% earned the wealth. Ohio’s pension system is in trouble and people are getting nervous. US manufacturing is a drag on the economy. The Fed is distracting the world with their unwinding the balance sheet propaganda. The petrodollar is under attack and as the system breaks down gold will shoot higher.