Tuesday, July 15, 2014

Why Collapse Becomes Inevitable!

Charles Hugh Smith:
"It's easy to see what's happening with debt and the real economy (as measured by GDP, gross domestic product): debt is skyrocketing while real growth is stagnant. Put another way--we have to create a ton of debt to get a pound of growth."

Monday, July 14, 2014

Signs of An Approaching Stock Market Top?

Wall St insiders know that once John and Mary Mainstreet pile into the market, the time is now to get OUT. They're jumping ship like rats, while the small investors on Main St piling into the market. One reason for this is that there's not big piles of cash left to keep pushing the market still higher. Once John and Mary pile in, who's left with mountains of cash to keep buying and pushing the market higher?

Look at the chart in this article that shows that just as the Wall St bankers are jumping OUT, small "retail" investors from Main St are finally (foolishly) piling in. This phenomenon has existed for generations in history. Many on Wall St know that this is a sign of an impending top. That's why this article was written to talk about it.

 "Individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. About $100 billion has been added to equity mutual funds and exchange-traded funds.
Professional investors, such as Nick Skiming of Ashburton Ltd., say that individuals investors are attracted to stocks after seeing others getting rich from a big rally, a time when equities are usually overpriced. The bursting of the technology bubble in March 2000 was marked by mutual funds absorbing a record $102 billion in the first quarter."

It's a commonly-understood phenomenon on Wall St that as the "dumb" money, as they often call it, or "retail" investors -- unshophisticates -- pile into the market, a market top is soon coming. These small investors tend to wait far to long to get in, and far too long to get out! They tend to lose lots and lots of money.

Goldman Sachs, by the way, internally refers to these people -- their own clients -- as "muppets". A Goldman insider blew the whistle on this a few years ago and revealed the true collusion on Wall St against small investors.