Multiple charts exist which predict another recession this year!
Now, I am normally a very positive person. In fact my first post for the new year was very hopeful. But recently I found not one but two charts which show we could have a repeat of the recent Great Recession.
The first chart above shows how the Federal Reserve and Quantitative Easing have allowed financial institutions to run wild again. In summary, the leveraged lending is out of control. For the past year it has risen as fast and to the same level as the year before the 2008 Great Recession.
The second chart above shows how the Dow Jones Industrial Average (DJIA) is the same as 1929. It has followed almost identically as it did in the years leading up to the Great Depression in 1929.
Big name investors like Warren Buffet and George Soros have cut their stock investments or shorted the market.
If another Great Recession occurs, riots will take place that are greater than the Occupy Wall Street demonstrations and President Obama will face impeachment.
Can another Great Recession be stopped? Yes, the Federal Reserve can take two actions.
1. Put restrictions on QE funds to minimize leveraged lending.
2. Stop issuing QE funds to institutions that use “expected rent” as collateral.
You can make a difference by voting for the following White House Petition.
Thanks for reading this.
Central bankers are watching this chart too. They won’t let this drop
Agree that central bankers have been watching this chart and have been trying hard to reverse it. But leveraged loans have been rising fast despite their repeated warnings. Mergers are out of control. Just look at the recent one involving Saks. What goes up 50% in one year when inflation is supposedly 1%? I smell trouble in River City. Anybody want to buy an instrument?
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