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.
Why can’t anyone submit a stock sell order with a price range? In other words with a maximum price AND a minimum price so you maximize your profit and minimize your loss? Why do we have to hope it will go up and never go down?
Why do we have to use a 100 year old process that is susceptible to flash crashes and flash freezes?
Benefits of a selling price range include less risk. A flash crash would be averted because free-falling stock prices would not happen since everyone would sell out at the lower price before a crash occurred.
But better yet, what if you allowed the maximum price to rise with the stock price? The result is more profit if your stock rises even further.
And what if this new system works for shorting stocks as well as buying stocks?
There is a patent pending process called the Low High Trailing Execution Stock Orders System.
On April 8, 2013 new more sophisticated Securities and Exchange Commission rules seeking to prevent another flash-crash tookeffect, but some observers are dubious about how effective they will be in another crisis-situation.