👉Will The Pandemic Trigger A Market MegaCrash or will The FED Magic Market Rigging Continue
Channel: GeoStar TV
Date: 26/03/2020

👉Will Coronavirus Trigger The Markets MegaCrash or will The FED Continues its Magic Market Rigging ?

Nobody really knows what effect the coronavirus will have on the global and US economy.
But everybody knows that the Fed will continue kicking the can to the very limits of human perception (and beyond) for as long as their bamboozlers can bamboozle.
The Markets have been poised for turmoil for a while now.
It's already on a knife-edge because central bankers have failed the world. But the FED's plan is to keep the fire hose going full blast no matter what.
A Market overvalued,  global recession... US budget deficit growing. The only growth in the world has been more debt. organic growth has been negative for years. This virus is also being grossly underrepresented.



So why is the market still so high?

three main factors.

QE, buybacks, and 401k contributions.

each, at the margin, is buyers at any price to the tune of tens of billions A MONTH.

QE is an enabler of socialism/communism by removing any correlation between return and risk, cancellation of the time value of money combined with the assumption that the value of work can be replaced with money printing

buybacks facilitate the takeover of companies by the very management that should be accountable to shareholders

401k's are growing at the rate of a trillion a year from contributions that primarily are diverted to passive "index" funds.
We are in a recession since 2008. The boom is only emulated by the printing press.
it's not rocket science.

The unwind of QE, the outlawing of buybacks and the retirement of 401k holders will see a ten-year bear market year with drops of 40-50% like the 2000-2010 and the 1970-1980 bear markets when the S&P dropped by 40-50% - taking the S&P back to 1,500 or thereabouts.

The stock market is no more the economy per se.
Now with their coronavirus unleashed,  that day is not far down the line.
Get ready for the orange swan to get cooked.

Coronavirus fears are already having a negative impact on Chinese markets and the economy as a whole, amid concerns of a global outbreak.



Those possibilities mean falling stock prices for U.S. firms especially exposed to the Chinese market, and to the travel sector. Wynn Resorts and Las Vegas Sands, U.S.-based casino firms that own major properties in the Chinese territory of Macau, are both down more than 6 percent on Monday. U.S. airline stocks are also hurting — Delta is down 3.8 percent, American is down 5.4 percent — reflecting concerns that the epidemic will encourage people to delay or cancel travel plans. And Disney, whose theme parks in Hong Kong and Shanghai are closed due to the outbreak, is down 2.3 percent today.

China's economy is gonna go down faster than bottles of vodka and pills at Nancy Pelosi's house.




Mission accomplished. Now they can blame the virus for the upcoming financial crash and no one sees that the Baltic Dry Index was on record low already before we even heard about Corona. 
 Time to bet against the Fed. People are going to stay at home. The Chinese economy is going to be hit first, then Western economies. There will be panic buying of supplies, but it won't offset the massive reduction in overall economic activity. Interest rate cuts and money printing are not going to save the market this time.

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