2/16/2016 – An up day with the Dow Jones up 221 points (+1.38%) and the Nasdaq up 98 points (+2.27%)
Investors are starting to wonder. If the bearish case is indeed correct, can anything be done to save the US Economy/Markets?
A “full default cycle” in the U.S. would trigger a further 20 percent downside European equities, Raedler said, but would also increase the risk of a U.S. recession. He believes that this rising cost of debt for corporates would reduce their spend on investment and hiring. Falling equity prices would also urge people to save and thereby dent consumption growth, he added.
First, its unclear if Deutsche Bank (DB) is talking about saving the overall stock market or begging the FED/ECB to bailout DB. As the company’s stock has collapsed due to various credit and balance sheet concerns.
John Cryan, the chief executive of Deutsche Bank, has described his bank as “rock solid”.
Correct me if I am wrong, but didn’t Lehman Brother’s CEO use a similar expression a few days prior to filing for bankruptcy?
But that wasn’t enough. According to Deutsche Bank most bears are idiots and the FED will have no trouble steering our economy through troubled times.
“The bears have a problem,” asserted Torsten Sløk, chief international economist at Deutsche Bank, in a research note. “The problem is that the challenges in the energy sector are not spilling over to the broader economy and the macro data is not deteriorating.”
Once again, it appears Deutsche Bank has a problem, not the bears. And in terms of the FED, I would suggest you listen to Jim Rogers: Central Banks Completely Incompetent and not some fool from a mismanaged bank.
Here is the bottom line. There is nothing the FED or anyone else can do to save the US Economy/Markets from an upcoming recession. And while some believe that negative interest rates and another round of QE will save the day, it is nothing but a pipe dream. The imbalances are simply just too great now.
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. February 16th, 2016 InvestWithAlex.com
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