Biggest market crash in HISTORY coming, HUGE debt bubble, danger ahead

SpacePete

SpacePete

Well-Known Member
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Biggest market crash in HISTORY is coming as HUGE debt bubble bursts, top investor warns

NOW is the most dangerous time EVER to be an investor, as a giant bubble could be about to pop and derail the world's economic system, a financial expert has warned.

Since the financial crisis a market bubble has been created by the world's central banks, which have flooded stocks in the hope of stimulating an economic recovery, according to Michael Pento, president of Pento Portfolio Strategies (PPS).

But now this bubble is set to burst, which will mean the total collapse of financial markets across the world, the Wall Street expert warned.

The predicted crash is set to be so severe that there will not be a single asset that is safe, with even the value of diamonds and sports cars completely decimated, according to Mr Pento.

He said the current financial conditions are "the most dangerous I have ever witnessed in my entire life - and I've been investing for over 25 years.The membrane has been stretched so wide and so tight that its about to burst."

It comes as global central bank balance streets have gone from $6trillion in 2007 to $21trn today - and they are still being expanded at the pace of $200billion every month, according to Mr Pento.

...some corporate bonds - or debts - are now trading with negative yields, which means that investors are essentially paying to lend money in the hope the debt price will keep rising.

Mr Pento has now warned that when policymakers signal they are set to stop buying, which will stop bond prices rising, there is going to be a devastating crash - not just in bond markets but across all investment assets.

He said: "When the bond market breaks, when that bubble bursts, it will wipe out every asset, everything will collapse together I mean diamonds, sports cars, mutual funds, municipal bonds, fixed income, reits, collateralised loan obligations, stocks, bonds - even commodities - will collapse in tandem along with the bond bubble burst."

...


"We are in a very bad situation..and this is not going to end very well."

http://www.express.co.uk/finance/ci...ster-debt-bubble-explodes-warns-investment-ex
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TL;DR

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AAA securitise all the things!!

Wall Street's newest alchemy: Bundling people's cellphone bills into bonds

Mortgages. Car loans. Even credit cards.

The many consumer loan products Wall Street has "securitized" packaged up, sliced and diced, and sold to investors have had their ups and downs over the years.

Now add to that list mobile-phone payments.

...

Moody's said that mobile phone contracts have a particular strength as an asset, "owing to the fact that they represent an essential component of Americans' daily lives and routines." But it also wrote that the new contracts have not yet "been tested in a difficult economic environment."

Securitizations like these will help carriers diversify their funding sources, making their balance sheets look a little better than if they simply issued more debt. Debt based on what Joseph Lau, a managing director with RBC Capital Markets, calls "high-quality consumer borrowers" is likely to trade as well or better than corporate debt over time, he noted.

The Verizon deal has been very liquid in secondary market trading, Lau said, and "investors continue to call and ask about the next deal."

http://www.marketwatch.com/story/wa...erial-for-bonds-is-your-phone-bill-2016-09-19
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Source:
 
bubblebobble2 said:
it'll deflate like a silent fart....
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Man who sneaks off silent fart after heavy night of beer and kebabs may destroy underpants in a soggy explosion. No one wants to be left holding those underpants. Better to have big shorts ;)

#StreetEconomics


[youtube]http://www.youtube.com/watch?v=qDeHgwG1_r8[/youtube]

___
 
House said:
Skyrocket said:
And when this big crash happens soon all these nah sayers will go quite
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Will go quite what?
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Just wait and see. You'll be one of them I bet. :D

Won't have to wait long. Cannot keep dragging on like this. After it happens there'll be no excuse for all the nah sayers because all the signs were there.

And your precious housing market is going down big time :P
 
It will be exactly 15:31 at some point in the future.

That celebrity couple who just got married are going to have a baby.

The super-reliable Toyota you bought? It's going to break down.

It will get very dark before tomorrow morning.
 
Skyrocket said:
House said:
Skyrocket said:
And when this big crash happens soon all these nah sayers will go quite
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Will go quite what?
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Just wait and see. You'll be one of them I bet. :D

Won't have to wait long. Cannot keep dragging on like this. After it happens there'll be no excuse for all the nah sayers because all the signs were there.

And your precious housing market is going down big time :P
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One of the ones that go quite or quiet?

Housing market is not going down 'big' time. If you're so adamant in your belief it will, put a bet on it. $50k?
 
House said:
Skyrocket said:
House said:
Will go quite what?
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Just wait and see. You'll be one of them I bet. :D

Won't have to wait long. Cannot keep dragging on like this. After it happens there'll be no excuse for all the nah sayers because all the signs were there.

And your precious housing market is going down big time :P
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One of the ones that go quite or quiet?

Housing market is not going down 'big' time. If you're so adamant in your belief it will, put a bet on it. $50k?
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50k against you after you just told me you misplaced the kilo silver coin you would give me if our housing market crashes this year? Unlike you I put the proof coin in my SDB if I lose against you.
 
It was misplaced well before then (and by the look of things it will stay that way) but I'd obviously buy a new one if I lost. But if that's your excuse for playing chicken, so be it :)
 
You can never be sure about the future so best to have a bet each way.
Gold would be the best bet.
 
House said:
It was misplaced well before then and I'd obviously buy a new one if I lost. But if that's your excuse for playing chicken, so be it :)
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Well, that is a relief hearing you say that in case you lose the bet. :) Although I expected the crash to happen by now but year not over yet.

Yep, I'm chicken with 50k bet :D
 
House said:
It was misplaced well before then (and by the look of things it will stay that way) but I'd obviously buy a new one if I lost. But if that's your excuse for playing chicken, so be it :)
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With near 75% of the year over it doesn't appear that it being misplaced will be an issue.
 
The big crash will come but lucky for me I am quite confident it will be after I die of old age and see technology wonders we have yet even dreamt about.

There will have to a crash maybe I predict after 100 years

China still has 3.5 trillion in the bank and the economy is still growing.

If it get real bad in 10 or 20 years (we are just seeing a hiccup) china could pump out 30 trillion in QE and anther 30 trillion or so of borrowings.

So nothing to worry about.

Note there will be recessions but just run of the mill ones, a little worse than the last non event recession
 
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