Investment WatchThe Bank for International Settlements (BIS) says the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.
The decision by the U.S. Federal Reserve to continue indefinitely to print money (here ) might have fallen on “orders from above”.
Apparently, the central banks dawns that it is tight.
Very narrow.
The most powerful bank in the world, the Bank for International Settlements(BIS) has published a few days ago in its quarterly report for the possible end of the flood of money directly addressed – and at the same time described the situation on the debt markets as extremely critical. The “extraordinary measures by central banks” – aka the unrestrained printing – had awakened in the markets the illusion that the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt – here ).
This clear words may have meant that Ben Bernanke and the Federal Open Market Committee, the Fed got cold feet. Instead, as expected, which is now formally announcing the end of the flood of money, the Fed has decided to just carry on as before.
If one is to the BIS experts believe that no single problem is solved.
All problems are only increasing.
Because the BIS but apparently does not know how they get the genie back in the bottle, it pays to listen to those who were part of the system – but now have no official functions and therefore more able to find clear words.
BIS veteran says global credit excess worse than pre-Lehman
Extreme forms of credit excess across the world have reached or surpassed levels seen shortly before the Lehman crisis five years ago, the Bank for International Settlements has warned.
The Swiss-based `bank of central banks’ said a hunt for yield was luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.
This is happening just as the US Federal Reserve prepares to wind down stimulus and starts to drain dollar liquidity from global markets, an inflexion point that is fraught with danger and could go badly wrong.
“This looks like to me like 2007 all over again, but even worse,” said William White, the BIS’s former chief economist, famous for flagging the wild behaviour in the debt markets before the global storm hit in 2008.
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Nouriel Roubini ‏@Nouriel 8 h
By too early taper talk starting in May the Fed caused a spike in long rates that weakened growth & forced it NOT to taper today
Gregor Peter ‏@L0gg0l 8 h
@Nouriel In other words: They don’t have the balls for taper
Ellinas ‏@BrokerTrader15 8 h
@L0gg0l @Nouriel exactly right.. They will just inflate markets even more to make it worse when they do decide to taper..
Gregor Peter ‏@L0gg0l 8 h
@BrokerTrader15 @Nouriel As the addict says: Just one last shot, then I’ll stop
Ellinas ‏@BrokerTrader15 8 h
@L0gg0l @Nouriel Then when the withdrawal begins, watch out!! the #Fed has no idea what they are creating here
Nouriel Roubini ‏@Nouriel 8 h
By too early taper talk starting in May the Fed caused a spike in long rates that weakened growth & forced it NOT to taper today
Gregor Peter ‏@L0gg0l 8 h
@Nouriel In other words: They don’t have the balls for taper
Marc Faber Warns “The Endgame Is A Total Collapse – But From A Higher Diving Board Now”
“My view was that they would taper by about $10 billion to $15 billion, but I’m not surprised that they don’t do it for the simple reason that I think we are in QE unlimited. The people at the Fed are professors, academics. They never worked a single life in the business of ordinary people. And they don’t understand that if you print money, it benefits basically a handful of people maybe–not even 5% of the population, 3% of the population. And when you look today at the market action, ok, stocks are up 1%. Silver is up more than 6%, gold up more than 4%, copper 2.9%, crude oil 2.68%, and so forth. Crude oil, gasoline are things people need, ordinary people buy everyday. Thank you very much, the Fed boosts these items that people need to go to their work, to heat their homes, and so forth and at the same time, asset prices go up, but the majority of people do not own stocks. Only 11% of Americans own directly shares.”
Former World Bank whistle blower
The meltdowns of meltdowns is coming:
Open Your Eyes
Read more at http://investmentwatchblog.com/bis-the-most-powerful-bank-in-the-world-announces-the-crash/#HO6VMByo9z6hWoTS.99
Their announcement is about six years overdue, but the fact that they are announcing it means that it’s going to become painfully obvious real soon.
Amazing that the solution to all our financial problems is staring us right in the face and nobody recognizes it. The answer is? Iceland! When they got reamed in 2008 they threw their crooked bankers in jail and the politicians in jail, then they called all citizens debt fraud so it was forgiven, and they started over, fresh. Now they are thriving and mostly debt free.