Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Financial Collapse - A Tale of How It All Went Down

Stock-Markets / Financial Crash Dec 26, 2014 - 09:31 PM GMT

By: Dr_Jeff_Lewis

Stock-Markets

“Memory is fiction. So is the future.
But there is some truth in fiction.”

When they woke Thursday morning, the banks had been closed on the east coast for 2 hours. Electronic payment systems worked select areas only, government services, food, and energy distribution.


In 24 hours those remaining systems were overwhelmed with volume and confusion. Forty-eight hours later a Federal state of emergency had been issued. All broadcasts were official. The media now fully blackened. Hospitals closed. Panic had taken over. In the lead up:

Low (manipulated) interest rates had created a false dawn in oil production. It was like salt in the open wound of failed banking policy. Higher real estate and equity prices were one thing. But energy inflation was threatening the credibility of central bankers.

They would need the political cover to continue propping markets.

They were spinning plates in order to keep the plates spinning, but they couldn’t keep spinning forever. Beginning in June, they started knocking down the price. A series of end of the day low volume spoof trades triggered technical fund selling.

It was enough to get the whole complex over the short side. The machines came in and the price went down. And the dollar began rising relative to its basket. The stronger U.S. dollar began having an inverse impact on dollar-denominated commodity prices, including oil.

Emerging market credit quality began to fail quietly in the background of the news cycle.

Less over all dollars — or recycled petrodollars sent waves of uncertainty and impact on loan markets and Treasury yields. Very soon after the manufactured oil plunge, energy exporters from the emerging market saw a massive drain on the global capital.

Essentially, a full one-third of emerging market GDP disappeared as energy exports fell.

As a consequence, credit ratings fell - putting even more pressure on global liquidity ratios. The death spiral had begun far more quickly and sooner than anyone could have imagined.

We all had a feeling about this:

For a long time observers wondered why they didn’t just come right out and say they are propping up/managing all markets at this point? This gradually, then suddenly, changed all at once.

Most suspected there would be direct intervention in equities. Like the Japanese were doing. But the propaganda machine ran too hot. The markets wouldn’t ‘believe it’ or there were just too many black swans arriving at once.

From domestic divisions to geopolitical tensions and hot spots boiling over - the confusion was palpable. There were too many places to look for blame. Too many contributing causes.

In the confusion, the real market re-asserted itself. Suddenly, the clearest path to safety was understood overnight. But there was no bid for precious metals. Like trying to force a fire house through the head of the needle; new measures in secret to re-stoke the engine.

The story was that it was an accident. Fear spread and as soon as markets opened they broke again. The President called in all the bankers - the Fed. To spread the liquidity, reserve ratios were removed.

And they printed. Operation Extreme liquidity was implemented. Debt cancellation commenced. The banks were nationalized, but it was too late. Prices soared, people panicked.

A series of draconian civil clashes erupted and cities were put on lockdown. Shots were fired as the looting and crime spread across the world.

Most were dumbfounded.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in