Tag Archives: financial markets

Pushing the big problems into the future appears to have been the working strategy for both the Fed and recent Administrations, yet the U.S. dollar and the budget deficit do matter, and the future is at hand. The day of ultimate financial reckoning has arrived, and it is playing out. Words: 1096

Interesting things have certainly been happening in the underpinnings of global markets — things that either run counter to long-standing financial logic, or represent an unusual dislocation in the “normal” state of market affairs, or were once rare occurrences but have been happening with increasing frequency. Here’s a rundown.

The level of complacency in world financial markets is downright astounding - even stupid - and only an eventual thundering crash of the system will bring the madness to an end.

These days anything with a sustained gain is called a bubble that’s just about to burst so what’s an investor to do?

For the moment, things are looking pretty good in the United States but...our financial markets are perfectly primed for a fall. Sadly, most people did not see the crash of 2008 coming, and most people will not see the next one coming either.

The financial markets endgame is 'binary' with a likely outcome of 'one of two extremes'. This is an extremely important thing for everyone to think about. Below is more of what Mohamed El-Erian believes investors ought to be considering in these prevailing uncertain times and my comments/expansion on those views.

Even as I write these words, the world's largest economy — the E.U. — is coming unglued at the seams, the world's second largest — the U.S. — is careening headlong toward a fiscal cliff that promises to gut its GDP, nearly all of Asia — including Japan, China and India — is slowing...and yet most investors still don't get the message. [Let me go on to explain just what that message is.] Words: 1357

Will global financial markets reach a breaking point during the month of October? Right now there are all kinds of signs that the financial world is about to experience a nervous breakdown. Massive amounts of investor money is being pulled out of the stock market and mammoth bets are being made against the S&P 500 in October. The European debt crisis continues to grow even worse and weird financial moves are being made all over the globe. Does all of this unusual activity indicate that something big is about to happen? Let's hope not - but historically, the biggest stock market crashes have tended to happen in the fall. So are we on the verge of a "Black October"? Words: 1200