Juggling Dynamite

Having evaporated more than $16 trillion off global equity markets in the past 6 months, 40 countries have already entered bear markets, down more than 20% to date. The trouble is that during secular bear environments where the cyclical declines start from high leverage and extreme valuations (as in 1929, 1965, 2000, 2007 and 2014), the losses tend to average 40%+ before the selling exhausts. While interim rallies are to be expected, the impetus to sell into strength persists.

Billionaire investor George Soros said China’s economy is headed for a hard landing, a slump that will worsen global deflationary pressures, drag down stocks and boost U.S. government bonds.

“A hard landing is practically unavoidable,” he said in an interview with Bloomberg Television’s Francine Lacqua from the World Economic Forum in Davos on Thursday. “I’m not expecting it, I’m observing it.” Here is a direct video link.

See: Global shareholders have $27 trillion locked in bear markets.

Danielle was a guest today with Jim Goddard on Talk Digital Network talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.

A defining issue of the 2016 US election must be who pledges to break up the banking cartel and hold individual actors accountable for financial crimes within corporations.

Former regulator Bill Black and Public Banking Institute founder Ellen Brown say Hillary’s track record gives no indication that she will fulfill any promise in her 2016 campaign to implement regulations on Wall Street.

Here is a direct video link.

“Every day we roll the dice to see which big bank will blow up the global economy next.” –Bill Black