XJO - Bear Posts only (Factors which might cause the markets to fall), page-5959

Actually that is the very reason we are heading for a very deep recession. Never in the our history that I know of have we ever created such a market bubble by lowering interest rates to zero (or negative in some cases) and then spending and injecting insane amounts of Govt money in both the economy and the stock markets (printing press never stopped).

Now we have insane amounts of debt we can't even service or pay back for 2 generations are the estimates? The labour market is already cracking as we can see by mass layoffs beginning to try to get ahead of the recession that is coming. Global companies would not be firing and cost cutting if we weren't about to see one, they would be hiring and spending.

Once the labour market falls over (starting) so does everything else, we only a house of cards now as you can see with some world banks forced to intervene already and recession not even here yet. The reason its different to 2008 and 1987 is because they weren't artificially created by Govt insanity anywhere near to the same extent.

Now Govts and central banks are being forced to to create the exact opposite conditions to try to fix the mess they made. But, as is often said the cure is worse than the disease. And in this case it will be. Removing liquidity and raising interest rates at record speed to try to head off massive infaltion ends only one way and its not good.

We seen it all before but this time it might be worse. Good luck all but stay nimble its a long way down and the more they manipulate these way overpriced markets the greater the chance we see an actual crash versus a deeper correction.