Liquidity hunt by bears loose on Wall Street could spell disaster for 401K’s

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Cramer’s financial strategy challenged by Vlogger with contacts to German banking insiders

aura writes; I agree with the investment strategy put forward by the vlogger in the above link, and fear the recent market downturn could lead to the Enroning of Americans’ 401 K’s. The movers and shakers in the US stock market are going to be turning over ever stone and selling any stock, good, bad or indifferent, in a rush for cash. This urgent manuveuring for liquidity is being driven by the need for over leveraged investors to raise quick cash to meet margin calls in order to try to sustain their increasingly shaky financial positions. As they unload their portfolios, then alternatively buy and quickly sell stocks to make quick gains, the stock market will be steadily driven down. The only question is – how far will it go? No one’s 401K account is safe in this desperate economic environment. They are all in real danger of being Enroned as the market spirals downward during this dash for cash.

Investors are going liquid out of necessity and because they no longer trust the unregulated financial instruments (derivatives) that can lose their value virtually overnight. Brokerage houses are behind the 8 ball as they issue sweeping margin calls to over leveraged hedge fund and derivative investors, and mid level stockholders – individuals that are being unwittingly swept up in a whirlpool of Bear Market chaos. A coming market crash on a grand scale appears inevitable and threatens to be thoroughly all encompassing.

In a sign of how serious the liquidity mess has become, Fox News Channel pre-empted its usual rooster of Saturday morning business programs, which feature a laundry list of paid market analysts that make weekly stock recommendations. Instead, Neil Cavuto moderated a chat fest of many of the same analysts examining the market turmoil of the preceeding week and putting forward predictions on how it would play out in the coming weeks. This move by Fox producers to scap their regular line up of business programs based on market instability is unprecedented in recent memory. Things are so bad that they kept their market analysts from recommending any stocks, and gives credence to predictions by some that a market meltdown is underway that could cut its value by at least 30% (conservatively)

If the American people ever allow private banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and corportations that will grow up around them, will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.

~ Thomas Jefferson

Can the Fed Prevent Deflation? Does it want to?