by Mac Slavo, SHTF Plan:
The economy has gone suicidal.
It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.
While the general population is obsessed with the details of the world’s most entertaining and bizarre election in American history, the big banks are gearing up for a deadly serious economic collapse.
Just during the past few weeks, there have been major discussions about stock markets dropping, the insolvency of Europe’s biggest investment bank, the mounting debt crisis and a deeper, long-term decline for ‘everyday Americans.’
Here’s what you probably missed while the Hillary-Trump cage match has taken over the collective psyche:
1. HSBC Issues “Red Alert” Over Imminent Sell-Off of Stocks
The U.S. stock market is artificially propped up by the Federal Reserve, but their ability to stimulate the economy has worn off. Immunity has set in, and they’ve got nothing left.
It is only a matter of time until Yellen raises rates.
When the shoe drops, everything falls with it.
via Business Insider:
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks.
In late September, Gunn said the stock market’s moves looked eerily similar to those just before the 1987 stock market crash. Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. “With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT,” Gunn said.
2. I.M.F. Issues “Stability Warning” Over Deutsche Bank
Germany’s – and Europe’s – largest investment bank is in the midst of a terrible crisis with its balance sheets, overloaded with toxic debt that is big enough to topple several continents. Goldman Sachs and others, of course, have echoed their concerns.
According to the NY Times:
“The focus of investors has shifted from the level of capital to the business model, and that is why banks are under pressure,” said Peter Dattels, deputy director in the I.M.F.’s capital markets division.
In their report, the fund’s economists argued that the problems with European banks were deeply structural: a toxic brew of low levels of capital, troubled loans and business models that no longer delivered profits in an era of low growth and negative interest rates.
In particular, Mr. Dattels said, “banks are transitioning from outdated business models that rely on large scale balance sheets,” saying that Deutsche Bank fell into this bucket.
Economists and regulators have argued that Deutsche Bank, given its size and culture of risk-taking, poses more of a risk to financial markets than its peers in Europe and the United States.
As per usual with the haunting spectre of 2008, Deutsche Bank’s demise threatens contagion on a global basis, and will almost certainly infect U.S. markets as well.
Please follow SGT Report on Twitter & help share the message.