If you are an investor and are heavily long the markets, this is a good time to prepare for pending doom. US banking indicators are on the razor's edge of signaling the end of the speculative financial engineering bubble. Any further weakness in banking indicators would suggest that that bubble has begun to deflate and that we are in the early stage of a bear market in both stocks and bonds. Being this close to the edge requires a lightning quick reaction to any additional decline in these indicators coupled with a significant drop in stock prices.
US Banking Indicators Suggest The End Is Nigh
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.