U.S. Stock-Bubble Has Finally ‘Rolled Over’

With so much extraordinary news (and related insanity) to cover, a subject which has slipped-through-the-cracks is that the U.S. stock market bubble has now burst. Readers are excused if this “news” has escaped their own detection, since the Corporate media has been instructed by the Wall Street syndicate to keep this reality hidden for a few more months (weeks?).

However, for those more-inclined to personal sleuthing rather than accepting the propaganda of the Corporate media, the evidence is unmistakable. One of the surest signs that a stock-market bubble is on its last legs is when “margin debt” (i.e. leverage) eclipses any/all previous records. Market bubbles can only teeter-totter for so long once leverage reaches a ridiculous extreme.

U.S. markets have already seen margin debt hit a new, all-time record. This occurred in the summer of 2013. Since that time; Wall Street’s bubble-pumpers have added another 25% to this all-time record for debt/leverage (and insanity) in U.S. markets.

This is not any ordinary bubble which the banking crime syndicate has created, over a period of 7 years, but rather the Mother of All Bubbles. It could never have come into being without the enthusiastic assistance of the Federal Reserve, which force-fed more than $3 trillion in new, hyperinflationary money-printing into these markets, quintupling the U.S. monetary base in the process.

It would be far too modest for former Fed Chairman B.S. Bernanke to refer to himself as Wall Street’s “accomplice” in pumping-up these catastrophic bubbles. He was the sole tool, without which none of this would have been possible. This should be no surprise to educated readers, since the Big Banks of Wall Street own the Federal Reserve – literally. (Former) Federal Reserve Chairman, Benjamin Shalom Bernanke, was more than just “a friend of Wall Street.” He, like new Fed-head Janet Yellen, was/is their employee.

Naturally, as the Mother of All Bubbles nears its detonation-date, it’s not just the vampires of Wall Street eagerly anticipating the feeding-frenzy coming their way once these bubble-markets are crashed. We can’t forget Warren Buffett. One of the most-loyal promoters of the Wall Street crime syndicate; Buffett’s reward for years of faithful service is that he (and his shareholders) are never caught “holding the bag”, at the end of each/every one of Wall Street’s bubble-and-crash cycles.

Currently, the Oracle of Omaha has stashed-away somewhere in excess of $60 billion vampire-dollars, as Buffett looks to profit on the misery of others, one last time, before he goes to his final resting place – wherever that might be. While most of the U.S. population will be shell-shocked, and likely financially devastated at some point within the 6 – 18 months, Berkshire Hathaway shareholders will be grinning like bankers.

At this point; there might still be some intrepid gamblers reading this who don’t believe that merely the insane level of margin/leverage in U.S. markets is any reason for them to cash-out – while they are still wearing their shirt. Let the good times roll!

This is precisely the point, however. The “good times” have stopped rolling. Instead, U.S. markets have “rolled over”, an understated two-word phrase, which arguably injects more panic into market bulls than any other two-word pairing in the English language.

“A lot of people intimated when we broke out to a new high in margin debt a couple of years ago that it was out of control, but the percentage change in margin debt from the low of 2009 was almost identical to the S&P’s,” Ramsay said. “Now that trend has rolled over.”

What did this market pundit mean when he referred to U.S. markets as having “rolled over”? Ensuring that no reader could fail to deduce this from the context; he added the word “trend”. The trend is over. In other words, the seven-year, Wall Street/Federal Reserve bubble-pumping frenzy is over.