The Beginning of “the Ending Sequence”!
Bill Holter
MilesFranklin.com
June 29th, 2015
This coming week could be very telling. China just ended a disastrous week and finished just whiskers away from entering bear market (-20%) territory http://www.zerohedge.com/news/2015-06-27/chinas-370-billion-margin-call . Credit markets all over the world are weakening and yields are rising. Greece will not make their June 30 payment(s) and probably go through a referendum to decide whether or not to flip their creditors the bird in a meaningless vote. In fact, Greece will probably “go boom” this week. Their banks and stock markets may not open Monday morning http://www.zerohedge.com/news/2015-06-27/greek-stock-market-may-not-open-monday-greek-officials-warn . Two days later, some sort of plan will need to be concocted to classify their bankruptcy as not a “DEFAULT”, otherwise a $3 trillion fuse to a $1.4 quadrillion bomb will be lit! These and more will be very important “mid-term exams”, any failure will bleed over into derivatives and become “final and terminal exams” with zero chance of a passing grade!
We have all heard about the Greenspan, Bernanke and now the Yellen “put”.
It has been believed (and for good reason), the Fed would step in and save the stock market should it begin to buckle. Magically, and time after time as the stock market would hit critical levels, panic buying would appear. This has been written about many times by many authors. Would the Fed really buy stocks or even indices? I would ask, “why wouldn’t they, it is actually even legal” after the plunge protection team was created in 1988. This is not conspiracy theory, it is FACT! All one needs to do is look at the Bank of Japan, they openly buy stocks and even seem proud of it! As for equities, please ask yourself these questions. How “sound” is a stock market that makes continual new highs on lesser and lesser volume? http://www.zerohedge.com/news/2015-06-27/bad-breadth-milestone-warning-stocks If you are a large holder, are you bigger than the available exit? What if everyone at once took Ms. Yellen up on her “put offer”?
The Rest…HERE
