7/15/2015 – A negative day with the Dow Jones down 3 points (-0.02%) and the Nasdaq down 6 points (-0.12%)
Imagine a heroin addict who is knocking on death’s door after an overdose. The attending physician only has the following two options. Flash the system, then hope/pray the patient makes it. Or give the patient an adrenaline/morphine short so he/she has few more minutes to say goodbye.
It doesn’t take a genius to figure out what the EU, China and Greece did over the last two weeks.
But not everyone thinks that way. Jamie Dimon on Greece and China: Crisis? What crisis?
“You have to separate the financial markets from the economy,” he said. “You can’t expect any economy to have perpetual growth at 10%. Dimon described the recent choppiness as “bumps in the road” and that he thinks Chinese banks and regulators will be able to handle things even if loan quality in China is a bit worse than expected.
Here is the problem with the presumption above. Who gave the “All Clear” signal? Just because China had a fairly substantial bounce after a massive sell-off, something I have talked about here, doesn’t mean the worst is behind us. One look at any of the Chinese indices and you realize that China left a number of massive down gaps behind. Gaps that the market will have to close.
That is to say, at the very least the Chinese market is set to re-test recent lows (when the bounce is over).
And I don’t care what kind of GDP growth China is reporting (today’s number showed a 7% GDP growth). I’ll put it this way. When even the CNN questions China’s accounting practices, Is China cooking its books?, you know the end is near.
But it’s not only China. It’s everyone. Maybe in a more subtle way, but it is there. Today’s US Financial system is a one giant Ponzi Scheme that makes Bernie Madoff look like a boy scout. If you don’t think our financial markets are highly distorted at Shiller’s P/E of 27 though intervention, QE and stock buybacks, I am afraid you might be in for a rude awakening.
In terms of Greece, there is absolutely no way way in hell Greece can avoid default. Bailout or not and now or later. It is mathematically impossible. For Greece’s sake, the people of Greece need to overthrow their spineless Government, immediately default and then follow Iceland’s 2008 bankruptcy model. That is the only chance they have.
As I am writing this, Greek protesters are starting their clashes with police. I sincerely hope that they won’t stop until Greek default becomes a reality. I remind you, something that the entire country voted for. If they fail, they are to suffer the consequences of economic tyranny/slavery for many years to come.
So, is it possible that our adrenaline/morphine shot is wearing off. I will let you decide.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 15th, 2015 InvestWithAlex.com
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