That Popping Noise You Hear? Wall St. Banks Warning Of “Downturn”, Finally

Bubbles gonna pop, it’s a fact of life and since we have never really recovered from the “Great Recession” of 2007 except on the worthless paper the government has been furiously trying to stuff up everyones asses ever since then, this does not bode well for the economic well being of damn near everybody but especially working people.

 

Wall Street Banks Warn Downturn Is Coming

August 22, 2017, 9:47 AM PDT August 23, 2017, 1:48 AM PDT
  • HSBC, Citigroup, Morgan Stanley say end of market boom is nigh
  • Breakdown in trading patterns is signal to get out soon

HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.

Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks, bonds and commodities as well as investors ignoring valuation fundamentals and data. It all means stock and credit markets are at risk of a painful drop.

“Equities have become less correlated with FX, FX has become less correlated with rates, and everything has become less sensitive to oil,” Andrew Sheets, Morgan Stanley’s chief cross-asset strategist, wrote in a note published Tuesday.

His bank’s model shows assets across the world are the least correlated in almost a decade, even after U.S. stocks joined high-yield credit in a selloff triggered this month by President Donald Trump’s political standoff with North Korea and racial violence in Virginia.

 

My bold and I have to give extra credit for the bullshit excuse of trying to blame this shit on Trump.

“Downturn” can be interpreted six ways from breakfast if one is so inclined to waste time and effort.

My interpretation is that “The Great Recession” is going to look like a stroll in the park when this house of cards starts coming down.

The recovery they keep lying about is only relative to those who still have money.

The Average Joe is not among those people.

The real estate market has been in a bubble, again, and we are exactly where we were just before the crash of ’07, except orders of magnitude worse in many ways.

There has been no end of doom sayers warning about this for a long time and people have become inured to it but when no less than 5 Wall St. banks start admitting it then it is all but here and the evidence must be so overwhelming that they can no longer deny it.

Quite frankly, I don’t know what to expect as I am in no way an economist but after being around and living through several of these so called downturns in my day I am going to take this shit seriously.

Expect the worst and try to prepare for it as best as one can and if it doesn’t pan out to be as bad as you expected then what are you out?

You will still be better off than if you continued to walk around with your head up your ass pretending that everything is fine despite the overwhelming evidence to the contrary.

 

 

10 thoughts on “That Popping Noise You Hear? Wall St. Banks Warning Of “Downturn”, Finally

  1. Off topic, but with the hurricane hitting Corpus Christi I was wondering if you know of what ever became of Mayberry from Keep It Simple Survival blog?? His last post seemed like a suicide note. Hope it wasn’t.

    Like

  2. Well, if the real estate bubble blows again (it rarely just “pops”!), at least we’ll have sold our California house for a good price, and will be renting a cheap place in Fort Collins. If prices really start dropping, we’ll get a better deal on a house there, and let others worry about being underwater.

    Like

    • I have been waiting and waiting for the sucker to pop but so far it just stumbles along like a fucking zombie.
      It’s just a matter of time at this point but prices are way over inflated here just like they are everywhere else.
      Somebody is working overtime to keep that going.

      Like

  3. Yeah, when our little 1167sqft house sells for $520k, something is out of whack!

    Our DIL posted on FarceBook that they can “barely afford to live in the town I grew up in”.

    I’m just glad we were paying extra every month on the principal for the last 10 years. It makes our payoff smaller on the mortgage, and we’ll walk away from here with more than most people would.

    Like

  4. We ain’t well off, but at least I’m able to walk again now…
    Got bout five years food storage for me and the Mrs.
    More ammo than a half ton pickup could haul…
    Enough outdoor stuff to stock a Cabela’s store heh heh
    Even a fair amount of junk and silver eagles
    It pays to have lived a frugal lifestyle.
    Bet a whole lot of folks in their McMansions will wish , they had done similar things too

    Like

    • Yeah, but those folks are too busy paying for the McMansion they can’t really afford, along with the leases on two “Luxury” cars they can’t afford!

      Been my experience that 90% of the people living in houses like that are about ONE paycheck away from disaster….

      Like

  5. Hi Buddy, I know all about dealing with new site building. I have 2 .net sites and they are a fricking pain in the butt. Have fun. Going to go ahead and link to this site, but will keep up links to your old place.

    Like

    • I really appreciate that. The old site is going to stay up and to tell the truth, I still use that blogroll to keep up with everyone’s latest posts.

      I still have a huge amount of work to do here but the basic framework is up and the joint will start chugging along here shortly.

      Like

Pansies, Trolls and Liberals are urged to flee this place.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s