Warning – Economic Storm Clouds Gathering

mushroom_cloudI scan a lot of econ news every day. Today’s econ news is making me a little nervous, though, because there seems to be an awful lot of reports of very, very bad news. And it’s not just awful predictions from the usual doom & gloom crew. It’s coming from everywhere. And that makes me think it’s very likely that another economic hurricane is on the way.

 So take whatever steps you need to take to protect yourself as much as possible. It sounds like whatever is coming could hit any day.

 Three Government Reports Point to Fiscal Doomsday

 Soros Says US Banking System Basically Bankrupt

 Joseph Stiglitz The Market Is Irrationally Exuberant

 World Bank could run out of mone’ within 12 months

 INSIDERS CONFIRM THAT THE RALLY IS FAKE, ECONOMY IS GETTING WORSE

 Peter Schiff Agrees with Jim Rogers, Invest in Gold and Commodities

 HSBC Chief Warns Of Second Downturn

 CAUTION Stock Market Crash -Collapse Dead Ahead Say Faber, Rogers, Dent and Celente

 Bob Prechter Quite Sure Market Will Crash And Break March Low

 Entering the Greatest Depression in History: The Bank for International Settlements (BIS) Warns of Future Crises

 Note: Apparently, the BIS is a sort of uber-central bank. From this article (emphasis mine):

In September of 2009, the BIS reported that, “The global market for derivatives rebounded to $426 trillion in the second quarter as risk appetite returned, but the system remains unstable and prone to crises.” The BIS quarterly report said that derivatives rose 16% “mostly due to a surge in futures and options contracts on three-month interest rates.” The Chief Economist of the BIS warned that the derivatives market poses “major systemic risks” in the international financial sector, and that, “The danger is that regulators will again fail to see that big institutions have taken far more exposure than they can handle in shock conditions.” The economist added that, “The use of derivatives by hedge funds and the like can create large, hidden exposures.”

 The day after the report by the BIS was published, the former Chief Economist of the BIS, William White, warned that, “The world has not tackled the problems at the heart of the economic downturn and is likely to slip back into recession,” and he further “warned that government actions to help the economy in the short run may be sowing the seeds for future crises.” He was quoted as warning of entering a double-dip recession, “Are we going into a W[-shaped recession]? Almost certainly. Are we going into an L? I would not be in the slightest bit surprised.” He added, “The only thing that would really surprise me is a rapid and sustainable recovery from the position we’re in.”

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