Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Crewleader

(17,005 posts)
Sun Jun 15, 2014, 11:15 PM Jun 2014

Celente - This Key Bubble Will Collapse The House Of Cards

June 15, 2014



Celente - This Key Bubble Will Collapse The House Of Cards





On the heels of more chaotic trading in the markets, today the top trends forecaster in the world warned King World News that a key bubble will collapse the house of cards that is the U.S economy. Below is what Gerald Celente, founder of Trends Research and the man considered to be the top trends forecaster in the world, had to say in this fascinating interview.

Eric King: “Gerald, the Financial Times recently ran the front page headline, ‘Volatility extinguished by moves from central banks.’ When you see these types of headlines in major media, they do serve as a contrarian indicator. It’s interesting that since the day that headlined the Financial Times stocks have shown weakness.”


Celente: “There are so many outside forces that are influencing the markets. How could anyone possibly think that moves by central banks are intelligent decisions that are going to stop volatility? The central banks have been wrong continually....


Continue reading the Gerald Celente interview below...

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/6/15_Celente_-_This_Key_Bubble_Will_Collapse_The_House_Of_Cards.html
8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

Warpy

(110,908 posts)
1. I don't agree that markets have been terribly volatile. I see them as being very steady
Sun Jun 15, 2014, 11:29 PM
Jun 2014

although they're overdue for a correction. Last week the Dow came close to 17,000, and that is just plain crazy. The markets aren't inflated, they're hyperinflated because there are just so many places for capital to go and the market is still bringing real returns.

I also know that the people who will be hurt when interest spikes up again, other than people with ultra cheap ARM mortgages will be the ultra rich and the corporate, buying up housing in order to turn it into rental housing instead of housing that had the potential of being owned outright. What is left of the middle class isn't buying houses, no matter what HGTV is trying to tell us. Most of them are sitting it out, having been badly burned the last time there was an increase in overall housing prices.

Dr. Housing Bubble is finding completely trashed shacks going for half a million again, not a good sign.

I don't know who the plutocracy thinks is going to rent their former homes. Purchasing power on flat wages continues to decrease, meaning "for rent" signs will simply take the place of "for sale" signs as permanent fixture.

Finally, I do feel a bit of trepidation about a guy who prominently displays a gold ad on his page.



 

JayhawkSD

(3,163 posts)
3. How can that make any sense?
Mon Jun 16, 2014, 02:00 AM
Jun 2014

To say that markets are "not volatile" but are "very steady" and then in the very next breath say that they are "overdue for a correction" and are "hyperinflated."

Warpy

(110,908 posts)
4. The fluctuations have not been extreme ones
Mon Jun 16, 2014, 03:20 AM
Jun 2014

although old folks who remember a Dow under 1500 find the >100 point differences day to day extreme fluctuations. They need to work out the math of just how high that line graph has to be in order to be accurate as to proportion of the Dow. Corrections might make for an extreme drop when only the top of the line graph is shown. Put it into proportion and the jawdropping drops and rallies are barely noticeable at the top of the graph.

It is stable--for now. However, all that money being sucked out of the economy and funneled to the ultra rich has made it hyper inflated. Are we going to see them pulling all their money out to crash the market? Not bloody likely. There are few other places to put it.

However, there is something that could crash and take everything with it, the derivatives market. It is still unregulated and investment banks are back to selling CDOs based on iffy mortgages and now, some student loans. It's not going to take long before people notice the emperor still has no clothes and if it destabilizes the derivatives casino, the losses are likely to duplicate the 1929 crash when people said the money disappeared overnight.

Remember, nothing was really addressed as far as regulation goes after the 2008 crash, just some consumer protections which were little more than window dressing and still soon gutted.

The OP completely missed the shaky derivatives casino as well as the fact that the new home buyer driving prices back up is likely an investment bank, not the typical US family.

Then there is that gold advert.



 

JayhawkSD

(3,163 posts)
6. Maybe you need to look up the definition of the word "stable."
Mon Jun 16, 2014, 11:14 AM
Jun 2014

adj. "not likely to change or fail; firmly established."

That's pretty much the opposite of "due for a correction" or "hyperinflated."

Warpy

(110,908 posts)
7. You need to look up the definition of "small"
Mon Jun 16, 2014, 12:49 PM
Jun 2014

and read "how to lie with statistics."

You might also try reading the rest of my post.

We're done here.

gristy

(10,667 posts)
2. Now there's two words I don't usually see together.
Mon Jun 16, 2014, 12:58 AM
Jun 2014

In fact, I've never seen them together before and neither has news.google. What in heaven's name is a "key bubble"?

Crewleader

(17,005 posts)
5. Keeping Low Interest Rates For So Long is Key Bubble
Mon Jun 16, 2014, 10:35 AM
Jun 2014

That's my take in the interview and matches my posting of IMF in earlier thread sounding the alarm on new housing boom.


Celente expressing Key Bubble here I believe

"Remember, Eric, it was housing that caused the panic of 2008 and brought down the house of cards. People forget that following the dot-com bubble bust of March of 2000, and after the September 11th attacks that followed, what they did to rescue the economy was they lowered interest rates to 46 year lows. This created the housing bubble. When interest rates went up, the housing bubble popped.


The IMF is warning the same thing but in different language. Yes, they are sounding the housing alarm, and the alarm is that this new housing boom is once again nothing more than a house of cards that will collapse when interest rates go up. History is repeating itself."

Crewleader

(17,005 posts)
8. IMF cuts 2014, longer-term U.S. growth forecasts
Mon Jun 16, 2014, 03:10 PM
Jun 2014
IMF cuts 2014, longer-term U.S. growth forecasts

June 16, 2014, 9:30 a.m.

By Steve Goldstein


WASHINGTON (MarketWatch) -- The International Monetary Fund cut its growth estimate for the U.S. to 2% for 2014, down from the 2.8% it projected in April. The IMF still expects 3% growth in 2015. Though there is a "meaningful" rebound, it won't be enough to offset the first quarter that was hit by a harsh winter, inventory drawdowns, a still-struggling housing market and slower external demand, the IMF said. The IMF, in the Article IV consultation which it conducts with every member country annually, also forecasts weaker potential growth of "around 2%" for the next several years due to the effects of population aging and more modest prospects for productivity growth.

Along with comments:

http://www.marketwatch.com/story/imf-cuts-2014-longer-term-us-growth-forecasts-2014-06-16?link=MW_widget_latestnews_undefined

Latest Discussions»Issue Forums»Economy»Celente - This Key Bubble...