The Next Crisis is at Our Doorstep
by Phoenix Capital Research
For weeks now, I’ve been warning about a market collapse. Among the numerous items I pointed out were:
1) The US economy rolled over in a big way in Q1
2) The Euro Debt Crisis was spreading to Italy and Spain
3) China was showing signs of economic contraction
4) Mutual funds were overly invested in stocks
5) Historical patterns forecasting a collapse
6) Signs that the Fed had lost control of the markets
And on and on.
Meanwhile the mainstream financial media’s consensus was that everything was just fine and that at worse the “recovery” was slowing just a bit. The Euro issues were contained. The US debt issues weren’t a problem. And the Fed would be able to get the economy roaring in no time.
Well here we are and the markets are an absolute bloodbath. Other than hopes for QE 3 there really isn’t much to be bullish on. Indeed, we are very likely heading into the REAL Crisis in short order.
That Crisis will be a Crisis of Faith in the US Fed’s ability to contain and/or solve the problems of the financial system.