As I forecast, the Fed didn't announce QE 3. In fact, it didn't announce any new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.
On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Fed's implementation of QE lite which to date has been about $300 billion give or take in scope.
Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, "there are significant downside risks to the economic outlook."
Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing/ printing. This time around, the market senses that the Fed has disappointed and that the Fed's move is largely symbolic more than anything else.
The end result of this: the market is Crashing just as I warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.
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We're just getting started here. Today we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.
It's just triggered again... which means that today's sell off is JUST the beginning of what's coming.
Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.
We're also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.
Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke.
Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It's going to be a dark dark time.
Comrades, Graham Summers is a financial expert. He says the collapse has begun. Is he right? Well, I don't know, but seeing as he's a financial analyst, he knows a hell of a lot more about these matters than I do. I can't say he's right for certain, but he probably is.
Even without being experts, we all knew this would happen sooner or later. All we can do now is wait and see how long it takes for things to totally deteriorate.
I don't mean to get religious, because I'm not a religious man, but the Bible says, "The Day Of The Lord shall come as a thief in the night."
That means that in the first days of the End Times, you wouldn't know anything was up. It would be business as usual - for awhile. I imagine it will be the same with the Great Collapse. We really won't see any difference, and and we will go on with our regular daily routines - for awhile.
How long? Who the heck knows. Even Mr. Summers doesn't know for sure. What we must do now is remain alert and vigilant - and ready for the worst.
Got your MRE's? I'd get some now, if I were you. You just never know. Better to have it and not need it, than need it and not have it.