Bracing For An Eventual Day Of Reckoning
By Stephen Lendman
Financial markets today reflect a total disconnect from reality. Former Reagan administration Office of Management and Budget director, David Stockman, calls the Fed “a serial bubble machine.”
“It’s only a question of time before central banks lose control,” he warns. He expects “panic when people realize that (market) values are massively overstated.”
They’re “extremely dangerous, unstable, and subject to serious trouble and dislocation in the future,” he stresses.
The Fed is responsible for “exporting lunatic policies worldwide.” All bubbles burst. They end badly. For sure this one. It’s a whopper. It’s just a matter of time until all hell breaks lose.
Market analyst Graham Summers sees dangerous equity market topping signs. They include:
margin debt hitting new all-time highs;
bearish sentiment at all-time lows;
market leaders peaking or approaching it;
declining market breadth;
earnings are falling; and
equities “diverg(ing) dramatically from earnings and revenues.
Topping takes longer than many people expect, said Summers. Recent market movements aren’t “promising.”
“(F)or certain we are in a bubble. It’s just a question of when it bursts.”