The Stock Market is Perfectly Set Up For Another 2008 Crisis

[stockholmer]

http://www.zerohedge.com/article/market-perfectly-set-another-2008-crisis

With analysts and commentators everywhere coming up with all kinds of nonsensical “fundamental” reasons why the market has rallied (strangely performance gaming and manipulation never seem to get mentioned), I thought it worth seeing if indeed there were investors who were “buying” stocks today.

Few metrics gauge this as well as mutual fund cash levels. With over $10 trillion in assets, stock-based mutual funds are a decent benchmark for the “herd.” With that in mind, it’s worth noticing that mutual fund cash levels are at their lowest levels in over 40 years!



That’s right, mutual fund cash levels are lower than they’ve been in 40+ years. Lower than they were during the Tech bubble and lower than they were when the market put in an all time top at the peak of the housing bubble. Put another way, mutual funds are more “all in” than they’ve been in 40+ years.



On top of this, the financial system is even MORE leveraged than it was during the Tech Bubble.




snip

[FiveGoodMen]

1. And one will be triggered any time now

Soon as the crooks what to fuck with us again.

Just like a Bin Laden tape.

(Hey, didn't we kill that guy? Aren't we safe and free now?)

[CoffeeCat]

2. Every time I turn on CNBC..

...or tune into financial-based shows on cable networks--they're suggesting that
the DOW is going to explode to high levels--and that we could even see 20,000! Anyone
else hear these baseless, bizarre predictions and wonder WTF? It's as if they're trying
to drag in naive investors.

Same with gold. When will that implode? So many fear-based gold purchases. If you
listen to the ads on Beck, Hannity, Limbaugh, etc.--they are all hocking gold and telling
people that they'd better buy MORE because Obama is turning everything to shit. When
will the insiders burst that bubble?

It's utterly ridiculous. I quit trying to guess what the market is going to do, but
what is clear--is that CNBC and other financial reporters inject so much white-hot
air into their broadcasts, that it's nearly impossible to tell what is puffery and
what is actually decent information.

Seriously, I'm done. We pulled out half of our 401 from the stock market. Hubby
insists on keeping half in, so he can pay attention to the gobbledygook.

Such a sham and I wouldn't be surprised if another bubble imploded everything to hell.

Seriously? What is propping up stock prices? We are in a horrid recession. People
are more afraid than ever, and unemployment has held at 9 percent for a long time.

I can't quite figure it out. It appears that the cocktail party circuit and the mucky mucks
have figured out how to succeed without us. Or, the numbers are all baloney.

If anyone knows, I'm all ears.

[Chimichurri]

3. CNBC and Fox Business are Wall Street's Pravda.

Most of the time, so is Bloomberg News.

[femrap]

5. All the money that Bernanke has

been printing has found its way into the market. Remember the Quantitative Easing #1 and #2? They're pretty much over now.

Corporate profits have been pretty good because they don't pay taxes...they put all of their money in Switzerland, Bermuda and other places that don't tax.

It's basically the Rich and the Corporates and the Hedge Funds playing in the market. And it is estimated that 80% of that trading is by computers (artificial intelligence).

It's only a matter of time before it explodes.

The stock markets are legalized gambling. And never mind all of the Derivatives out there....trillions of dollars in these. We're living the Decline of the American Empire.

Maybe the 'government' will use this 'explosion' to end the US Dollar and supply the 'public' with a new currency....one that is worth 1/2 that of the US dollar.

There is simply too much Global Debt...

May the Mayans and Hopis be correct and this horrible competitive paradigm ends soon so we can welcome a cooperative paradigm.

I hope this helped a bit.

I would advise you to read ZeroHedge.com ..... very good!

[CoffeeCat]

7. Thank you, that was very helpful!

Such great information! I will look at ZeroHedge.com. I appreciate the suggestion.

Your post was very interesting. Things seem really strange, and you wonder what/who
is propping up everything, or who is even trading! Your answers make complete sense.

Maybe I can talk my husband into taking all of our 401k out of this roulette wheel.

[femrap]

12. Glad I helped a bit....

the roulette wheel is better than the stock market!!!! lol

[femrap]

13. Glad I helped a bit....

the roulette wheel is better than the stock market!!!! lol

[stockholmer]

6. some good links to help

Check out some of these financial podcasts from many of the most prescient minds in global markets.


http://kingworldnews.com/kingworldnews/Broadcast/Broadcast.html

http://www.financialsense.com/financial-sense-newshour



I cannot reccomend these highly enough. My rates of return on metals far, far outstrip the stock markets, etc, over the last 12 years.



Superb article on how to buy and store.

http://solari.com/articles/Options_for_Storing_Precious_Metals/


great 'dollar cost averaging' purchase programme for long term wealth preservation

https://silversaver.com/




great 'silver streaming company' called Silver Wheaton

http://www.silverwheaton.com/

good interview with silver Wheaton's new CEO

http://www.blubrry.com/financialsensenewshour/1057341/randy-smallwood-the-new-ceo-of-silver-wheaton-6-01-2011/

Gold has increased by double digits as a percentage gained for the last 10 years in a row. Can you say the same of the NASDAQ? The Dow? The S&P? The US dollar? US Treasuries? The average US IRA? LOL! How about your paycheck? How about the value of the average American house?


I have been long gold AND silver since 1998 (in physically-held, allocated non-bank secure vault accounts), when the US trashed the Glass–Steagall Act and legalized derivatives under the Clinton/Rubin/Greenspan troika. I have an average gain of over well over 300%, whilst the Dow is utterly stagnant from the tech bubble crash of early 2001 till now. In fact, it is off greatly, due to inflation, and many were crushed in the stock crash of 2008-2009, and pulled out, locking in huge losses that they could have somewhat recovered in the QE 1 and QE 2 fueled bubble that is now unraveling. Check back with me in 3 or 4 years when those 300% figures are closing in on 1000% profits.

In 1970, the average US car cost $3900 and it took 114 ounces of gold to buy. In 2011, that same car is around $29,000 yet takes less than 19 ounces of gold to buy. Hello dollar debasement!




good luck, do your due diligence, and prosper

[n2doc]

4. They need to privatize Soc. Security first.

Then they can sell all their crappy bubble stocks to the SS 'fund', and walk away when things crash.

[CoffeeCat]

8. Sad, but true...

...you wonder how they will get that done.

Bush turned on his heels, after attempting to privatize Soc Sec. He
couldn't get it done.

Should be interesting.

[n2doc]

11. Bush had the undivided opposition of the Democrats

and he still had some in his own party who were moderate. Now we have a total nutcase Republican party and a fellow traveler in Obama who has divided his own party. Not saying that Obama is going to privatize Soc. Security, but who knows what the Repubs will ask for next crisis? And what we will give up?

[Jakes Progress]

9. Sure it is. They didn't get all of you money last time.

[girl gone mad]

10. I'm mostly out of equities..

not touching that Ponzi Scheme with a ten foot pole.

The herd stampede to 'risk-off' is going to be... interesting.