Welfare for Wall Street is coming.
We’re going to be subsidizing Wall Street…just like we did in 2008.
One year ago we published this article. And we thought it was worth sharing again. It was before all hell broke loose in the world. And in a way, it set the tone for what we experienced in 2020. Ironically (or NOT) it revealed the real weakness in the global markets. And while it appeared to be somewhat prophetic, 2020 was more bizarre than even we imagined. Cue up: 2021, When the Great Reset and Food Shortages Hit Home which may make 2021 even more crazy than 2020…if that’s even possible. We believe 2021 will be crazier than 2020. And at the same time offer you more opportunities to prosper AND thrive in Turbulent Times. Read our January newsletter for more details (HERE).
Wall Street Welfare
It’s bad enough that billions of our taxpayer dollars are wasted on multiple forms of welfare recipients (Cough! illegal immigrants, Cough!) let alone Wall Street being bailed out…again.
The Federal Reserve intervention in the REPO market back in September was the tell-tale sign of what’s looking like QE* redux…but it’s not QE.
(Note* The Federal Reserve and Govt intervention is the root cause of welfare for Wall Street)
Watch out for the “head fake” here.
The markets knee jerk reaction – being blamed on the “Kung-Flu” virus in China – is a cover-up for the collapsing confidence in our governments attempt to manipulate interest rates.
Last Monday we wrote: The stock markets are trading at all-time highs and the boyz in the “Club” are gonna put on a head fake soon…possibly this week.
Then, on Friday we wrote: These kinds of
distractions head fakes could cause the DOW to fall 4,000 points as early as February.
What’s really happening is the markets are demanding that interest rates rise as witnessed by the REPO market blowing up.
Unfortunately (or NOT) our governments attempt to
manipulate keep rates down is failing miserably.
Don’t be fooled by this shakeout.
The problem is not with stocks.
It’s with the REPO market and, just like in 2008, it came unglued prior to a global contagion that wiped out Trillions of dollars.
You can be like most investors, reacting to this like the proverbial Deer in the Headlights, or you can recognize the Turbulent Times we’re in as an opportunity of a lifetime.
See for yourself (HERE).
Remember: It’s Not Just About Finance.