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Panic, Crash, Contagion now likely! Why?

March 2, 2015

The evidence is overwhelming! All our stock markets are in a bubble! Many key financial institutions could set off a financial panic, crash, and a run…which would lead to contagion and an immediate crash of our Dow or a similar Stock Market Index.  The weapons of our regulators and our Fed are now limited (as compared to 2008). Our Fed does not have the Authority to use its 13 (3) provisions as in 2008 to bail-out an institution which becomes suddenly insolvent. The Dodd-Frank legislation of 2010 has restricted the options of our Fed to provide immediate liquidity to stem a panic and contagion. Our Treasury Secretary (Jack Lew) and our President (Barrack Obama) must now decide what actions to take if a major financial institution goes insolvent and starts a trend of contagion.

Watch these two policymakers as the coming panic, crash, contagion commences! Our Fed is now on stand-by due to Dodd-Frank and the above two are the actors who must decide what to do!

The recent article in the Wall Street Journal, page A13, March 2, 2015 provides the evidence. The Committee on Capital Markets Regulation has reviewed all the evidence and they are now warning that our Financial System is still dangerous and vulnerable to a panic. Visit their website at: The top financial experts are now sensing what I have sensed for months and that is that our Markets are in a Bubble! The NASDAQ exceeded 5000 today and the index dollar reached a 11 year high of 94.49. It has been 15 years since the NASDAQ was over 5000. Remember what happened back in 2000?

The NASDAQ Composite fell another 10 on Friday the 14’th of April 2000 signaling the end of a remarkable speculative high-tech bubble starting in spring 1997. The closing of the NASDAQ Composite at 3321 corresponds to a total loss of over 35% since its all-time high of 5133 on the 10’th of March 2000.

Conclusion: all our markets are now in a huge Bubble and a panic and run on the major Exchanges could happen any day. The start of this panic could be a major SIFI financial institution (going insolvent) or a major flash crash set off my select computer traders. Today, all our markets are interconnected and global. Russia is now entering an economic depression and they would likely want to blame the Americans. Traders over in Russia might be the catalyst for setting off a global financial panic, crash, run, and contagion! Watch the markets daily for this coming calamity within our markets!

The NASDAQ exceeded 5000 today! All global exchanges are now in BUBBLE territory! A major crash and panic is in the making some time soon!

Our Fed is now mostly impotent when it comes to acting spontaneously when the panic ensues. The Dodd-Frank legislation has passed the buck to our Treasury Secretary and our President as the key policymakers for the next panic/crash. What will Jack Lew and Barrack Obama decide is the issue? Will they act in time to prevent contagion? I doubt it! Our interconnected markets can dump stocks and derivatives within seconds and no one in Authority can prevent this crash. Watch the markets daily for the coming panic in confidence which then sets off the run on our markets! I am:

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