'Big Time Crash Coming' To US Economy While We Are Facing A Rare Set Of Circumstances And Bernanke Just Gave A Green Light To Congress To Go Over The Cliff!!! FED: FOMC SEES 2013 GDP GROWTH OF 2.3% TO 3.0%
RAY DALIO: The US Economy Is Facing A Rare Set Of Circumstances That Will Be Bad For Markets
A fading economy and a Fed that’s out of bullets.
At the Dealbook conference, Ray Dalio, Steve Schwarzman and David Rubinstein just wrapped up a panel on investing and markets.
Of particular interest was Ray Dalio, the hedge fund god who has been killing it throughout the crisis.
And so you have to be intrigued that he’s bearish.
He’s not wildly so (thinks stocks will do better than bonds) but his basic idea is that risk premiums are maxed out, and have to come down. In other words, people have paid up max dollar for all risk assets thanks to the Fed dropping rates to rock bottom. Now that will reverse.
His novel set of circumstances he sees is an economy that faces austerity (due to the Fiscal Cliff, etc.) coupled with a Fed that’s mostly blown its bazooka, and can’t get much more juice out of QE (he believes that QE does less and less because the Fed can’t push that much that much more money from bonds into riskier assets).
So the novel set of circumstances are:
- Yields can’t go down anymore.
- Austerity is coming.
- Economy is running out of steam.
- QE is losing its efficacy.
- Rate turn probably finally coming late in 2013.
So there you go: Rates going up, austerity coming, Fed out of bullets. Bad for risk assets.
…
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Bernanke Just Gave A Green Light To Congress To Go Over The Cliff!!! FED: FOMC SEES 2013 GDP GROWTH OF 2.3% TO 3.0%
UPDATE: The FOMC’s updated macroeconomic projections are out.
2013 GDP growth forecasts were lowered to a range of 2.3-3.0 percent, down slightly from September’s estimate of 2.5-3.0 percent.
2012 GDP growth forecasts were lowered to a range of 1.7-1.8 percent from 1.7-2.0 percent in September.
2014 GDP growth forecasts were lowered to a range of 3.0-3.5 percent from September’s estimate of 3.0-3.8 percent.
15 of the 19 Fed officials see rates below 1 percent in 2014, while 10 of 19 see rates at 1 percent or higher in 2015.
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Bring on mad maxx lol, ready 2 dumpester dive? Lol
im 48 and the way the world changed in my life time for the worse,people morals are crap,they dont want to work have no religous beliefs and if they do its twisted to what they want it to be,war a corrupt goverment and perverts i mean the list goes on and on.
so when i hear a collapse a myan prediction that we will be inlightened or earth disasters and prophiets saying destruction and so on,im excited any of those things will bring alot of death and hard times but on the plus side is afterwards people will return to what we use to be,a hard working no more perverts traditional way of life NOT A pampered i dont want to work wheres my queer lover lets go steal something type of life.im sickened by the way people are right now and i hope something happens to turn this around and also hope i survive it but if i dont i still wish it because it is what the human race must have to survive.
I share your thoughts and feelings wholeheartedly.
I am 70 Years of age and old fashioned in every way.
I left Europe with a trade coming to this Country with 100 Dollars in my pocket.
I worked hard never used the System and went occasional to church.
I fulfilled every wish in my Life and I feel very sad that kids will never have the same opportunity,because of our corrupt Governments Lawyers Judges.
I think our Youth senses somehow that the End is just around the corner,so they give up.
I feel sad but I hope if Armageddon does happen that it comes soon.
Those that are left if any can not survive in a Radioactive Environment that will spread worldwide. I am afraid to say,that if God has not stepped in by now he will fulfill the bible Prophecy. Unfortunately there is no mention of Radioactivity in the Bible.
God bless us all.
VERT WELL SAID COULDNT AGREE MORE