stock market collapseEmployers are cutting full-time employees back to part-time to avoid the requirement of providing health insurance under Obama Care.
Trader Karl Denninger says, “As the Obama Administration runs against the economic reality of what they passed, they are now trying to find ways to dodge it. . . . The Obama Administration’s reaction to this has been to unilaterally, and by the way illegally, put off the imposition of mandate.” This is not going to save the teetering economy as Denninger contends, “Bernanke has lost control of the bond market and, in general, his policy. . . . The reality is the Fed is not in charge, and when that confidence level breaks, you are going to see all hell break loose.” Denninger goes on to predict, “We are setting up for a collapse that is going to be worse than 1929, and it’s going to come sometime within the next two years. It could come as soon as the next couple of months, but it is going to happen, and there’s nothing that is going to stop it.” Join Greg Hunter as he goes One-on-One with Karl Denninger.

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  1. The Obama Administration’s reaction to this has been to unilaterally, and by the way illegally, put off the imposition of mandate.
    How like Obama, would you expect anything other than Illegally?

    • Most of us would not expect anything else.  Still, this seems like a very ripe case that could and should be put before a federal judge.  The only thing that stands between a rogue president and the people is a strong court.  Without a strong court to uphold the law and preserve our rights, we might as well have just another tin pot dictator in the White House.
       
      HRM George III!  All is forgiven!  Please come back and take over!  Taxation WITH representation sucks too!   ;-)
       

  2. The majority of people who take the time to post opinions and or pertinent information and analysis know that the United States is done economically culturally and morally. What remains is when it comes crashing down, not if. The mathematical certainty of our global predicament is assured. ONLY WHEN it happens can be debated,  if is no longer an option. Prior Planning Prevents Piss-poor Performance is a thing i was taught too long ago. Its a shame it is seldom taught anymore. We stack for when the day does come so that we may weather the storm a bit better than those who wont. Its going to be an interesting time in our immediate future…a bit too interesting im sure.

  3. Karl wants the Fed to stop printing now, why?  A deflationary depression is not something we want to live in, why not just print money and slowly devalue an already over-valued currency like the Euro, Yen and US dollar?
    The CB’s of the world can drag this current policy for maybe many more years, what is to stop them?    Run away inflation would be the only issue.
    “Ben has lost control of the bond market”     That is yet to be seen, a 5 year at 1.37% and a 10 year at 2.53% is not losing control, not even close.

    • Runaway inflation would trigger a civil war, the sheep are waking up to the fact that this regime is not looking out for them.

  4. The control Bernanke has lost is stability and underlying confidence. Those still in these volatile markets are not staying because of confidence but greed. The moment Ben hints at a pull back there are many in the wings waiting to unload T-bonds. The rudimentary control the Fed has had over the economy is illusionary and false. Rates may be artificially low but the 2 day spike we recently had is a fore quake, the rumblings of whats to come. The real ‘bond quake’ is yet to come and when this hits nothing the B man tries to do can stop it or the tsunami to follow!! 

    • I sure hope that you are wrong about this, Julie.  The UST bond and the US dollar are so closely joined that if either of them fails, so will the other.  It would be difficult to think of anything more catastrophic than a US dollar collapse.  The entire financial world would be plunged into utter chaos.  Those of us alive today have virtually no clue as to how destructive and pervasive the damage would be from this.  This would be the financial equivalent of WW III.

    • I believe it is not an absolute certainty but a genuine possibility that an economic collapse of WWIII proportions is heading our way.  For all we know as we move forward it could simply become a triple dip recession with a Japanese style of sluggish economic activity, contractions followed by slow growth and decades of a so called recovery. My bet is on a full blown collapse. At some point B man’s magic tricks are going to run out or stop working. I agree we have no clue how bad it can actually get….
       
      My eyes will stay on the yield of the 10 yr note as a gauge of timing and where we’re headed, don’t care one iota about the new highs of the Dow or S and P, in the mean time I will count down the days to the next instalment of The Hobbit and stack as I wait!!! :)

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