{"id":142595,"date":"2014-12-10T21:40:16","date_gmt":"2014-12-10T21:40:16","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/?p=142595"},"modified":"2014-12-10T21:40:16","modified_gmt":"2014-12-10T21:40:16","slug":"loss-control-current-financial-bubble-busting","status":"publish","type":"post","link":"https:\/\/rinf.com\/alt-news\/money\/loss-control-current-financial-bubble-busting\/","title":{"rendered":"Loss of Control: The Current Financial Bubble is Busting?"},"content":{"rendered":"

Many who will read this work have been sitting patiently waiting for the house of cards to collapse. For me personally, I confess the current maniacal financial bubble has gone on much longer than I ever imagined. What did we miss? <\/em><\/p>\n

Are we wrong or just early? In my opinion, we were early, mathematically correct yet the \u201crules\u201d changed. For my part, I can say that I missed just how much \u201cleverage\u201d could be used to extend the game. In the current instance, we are not even talking about garden variety leverage. We live in a world where leverage is leveraged, leveraged again and again and again. <\/em><\/p>\n

We have personal, public, and \u201cprivate\u201d (OTC) leverage. The garden variety leverage is bad enough as is sovereign leverage, but the real problem are derivatives piled on top of derivatives with collateral which in many cases no longer even exists. Too much leverage in the past has always led to burst bubbles. All bubbles eventually burst \u2026and it looks like this one is bursting now.<\/em><\/p>\n

While I originally thought about talking of Venezuela and Ukraine today,\u00a0and\u00a0making\u00a0a comparison and wondering which one will bankrupt first, it dawned on me \u2026the current bubble is busting right now! From a big picture standpoint, the Fed was forced to stop QE because they were taking too much collateral from the system. The baton was then passed to Japan because the Germans said \u201cnien\u201d to the ECB. QE3 started in Sept. 2012 \u2026which is exactly the point in time where the world of asset valuations was turned further upside down. Call these last two years the \u201clast gasp\u201d or whatever you\u2019d like, the world does not have the ability to reflate any further and in fact, the \u201cbubble of all bubbles\u201d looks to be deflating piece by piece, let me explain this.<\/p>\n

Oil is arguably the most important commodity on the planet from a financial standpoint. Oil has collapsed in price by over 40% in less than 3 months. There are many repercussions from this, oil exporting nations are watching as their coffers run dry and \u00a0the economic activity from lower prices means lower individual employment.\u00a0\u00a0From a financial standpoint the oil derivatives outstanding have already killed someone (we just don\u2019t know who yet) and the \u201cunderpinning\u201d of the dollar has been weakened. My last point needs an explanation. The dollar is\u00a0otherwise known as the \u201cpetrodollar\u201d because petro revenues have been for years recycled back into dollar assets, lower oil revenues means lower recycling. This action had already begun while oil was still over $100 per barrel as less demand for dollar assets was evident. Now, on top of less \u201cwillingness\u201d on the part of petroleum exporters to recycle, they have less (or none) to recycle. No problem because the Fed will just monetize you say? Think again!<\/p>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Many who will read this work have been sitting patiently waiting for the house of cards to collapse. For me personally, I confess the current maniacal financial bubble has gone on much longer than I ever imagined. What did we miss? Are we wrong or just early? In my opinion, we were early, mathematically correct […]<\/p>\n","protected":false},"author":1,"featured_media":136713,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[487,52],"tags":[],"class_list":{"0":"post-142595","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-breaking-news","8":"category-money"},"_links":{"self":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/142595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=142595"}],"version-history":[{"count":0,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/142595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media\/136713"}],"wp:attachment":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=142595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=142595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=142595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}