Fund Manager Warns: US Stock Market Is About To Go “Super Nova”…”The stock market is headed for catastrophic destruction.”
SilverDoctors.com
December 21, 2016
China is dumping Treasuries and corporate executives are dumping stocks. Total U.S. debt outstanding hits new highs daily. Once again “smart money” is unloading its paper “assets” on an unsuspecting public. The delinquency and default rates in mortgage, auto and credit card debt is beginning to spike up, according to the latest reports made available and not disseminated through the mainstream media.
The U.S. markets are going Super Nova – don’t be left holding bag…
From PM Fund Manager Dave Kranzler:
ETF flows tend to be a good contrary indicator when they become extreme, so the buying frenzy doesn’t bode well for U.S. equities. – David Santschi, CEO of TrimTabs
If the Federal Reserve were a private corporation and did not have a money tree, it would be technically insolvent – i.e. bankrupt. As of its latest balance sheet the Fed was reporting a book value (net worth) of $40.4 billion. But the Fed does not have to mark to market its assets. Given the recent 100+ basis point move in the 10-yr Treasury, if the Fed were forced to mark to market its $3.8 trillion Treasuries and mortgages, it would be forced to reduce the holding value by close to $400 billion, taking the Fed’s net worth to negative $360 billion.
This is the most conservative valuation scenario. The Fed has other holdings, on and off balance sheet, that would likely take the Fed’s book value well past negative $400 billion if mark to market accounting were applied.
Think about this for a moment: the U.S. dollar is backed by a Government and Central Bank, both of which are technically bankrupt. The only difference between what happened to Greece and the U.S. is the U.S.’ ability to print money unfettered.
The Rest…HERE
