Jim Rogers Warns : This is a Financial Crisis Like No Other - Helicopter Money Wont Fix Debt Bubble

Jim Rogers Warns : This is a Financial Crisis Like No Other - Helicopter Money Wont Fix Debt Bubble







The markets took a lot of aspirins today, but they will wear off tomorrow, and the headaches should return. Dow should finish below 20,000 tomorrow. Unless they are given more aspirins. Eventually, though, all that aspirin will create an ulcer. Legendary investor Jim Rogers warns that "the next time we are going to have a financial problem it's going to be the worst..." and right now it appears we are headed toward "the worst financial crisis of our lifetimes” and “we will know in a few months." However, Rogers noted, the reason behind such market mayhem is "not just the virus, it is certainly much more" than that. The FED created the three largest mega-bubbles in history: in housing, bonds, and equities. One is exploding; the others are not far behind. With millions now unemployed, billions in delinquent car loans, and credit card interest rates at astronomic highs, it won't be long. They should just print infinity dollars and say the Dow rose to infinity, and we're all rich. That would solve everything. It's always the same outcome: BANKERS BAILING OUT themselves in the total mess they created! Witness in action our "government" of Wall Street bankers, by Wall Street bankers, for Wall Street bankers! No matter whom the people elect, you always get JPMorgan and Goldman Sachs in charge. The Shit going on is unbelievable. All to save massively overpriced assets. All the talk of helicopter money to save the economy is insane. What good will give people who would have never made money in the first place, a giant wad of cash. They'll blow it on garbage like some did with their Katrina cards. The only money given out should be the money stolen from working Americans. Whatever was stolen in payroll taxes should be given back for one year. Warren and the rest of the oligarchs who pay nothing in payroll taxes can eat their dicks. This is the reset. Welcome to the brave new world. Welcome back to The Atlantis Report. Please take some time to subscribe to my back up channels. I do upload videos there, too, on a daily basis. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank You. Now perhaps it should be clearer. This crisis will, in all probability, be more serious than all those experienced so far. Including the Lehman crisis. More serious because its nature is different. It is not a shock from fundamentalist aggression to the West (remember September 11) and not even from financial contagion like the financial crisis drugged by the subprime of 2008-2009. This is a crisis of global economic paralysis, of interruption (it is not known how long) of the vital organs of the corpus economicus. And it is not resolved by flooding the system with liquidity or by loosening the leverage of interest rates even more. It is not a shock of demand, but it will be a shock on the supply side with chain repercussions on all the world production chains that will amplify each other. MORE THAN The Stock Market, THE REAL ECONOMY is The Real Problem . Rather than looking and being surprised by the collapses of the stock exchanges, we should look at the underlying. To the real economy, which is the real vulnus of a health crisis never known so far in its planetary dimensions. The data of the Chinese economy brought out yesterday should be enough to understand the extent of the crisis: in just two months of the epidemic, industrial production fell by 13.5%; down retail sales by 20%; and even more limited investments (as obvious at this point) are the peak investments of 24%. That script will replicate around the world. With economies collapsing everywhere. Perhaps here is the explanation for the fact that despite the drastic measures taken by the Fed on Sunday evening to bring zero interest rates at once and to re-engage in post-Lehman-like buyback policies, the stock market reacted by deepening the falls, rather than mitigate them. The market is well aware that in the face of a protracted infarction of the global economy, central banks have little room for maneuver having, among other things, spent many of the cartridges in the last decade of monetary policy which has never been so expansive. LIQUIDITY ALONE IS NOT ENOUGH. Even if you throw the money from above with the helicopter, it will not end up in a circle but will remain confined to bank accounts and deposits. No real transmission of liquidity to the productive economy. And then more money to spend on doing what, if you can't move, work or spend. And especially if goods and services are not available. Investment bank analysts around the world are refining their forecasts. That the world will go into recession in 2020 is now obvious. Still, no one can predict how intense and prolonged it will be. But the signals from the various businesses are eloquent: in the front line the carriers, tourism; then to follow the car industry; the luxury; the energy impacted by the collapse of crude oil and finally the banks that will see revenues, profits and bad debts increase. PEAK TURNOVER EVERYWHERE. Recent Cerved research foresees two scenarios: In the best case, if the epidemic in Italy ended in May, the loss of turnover of the Italian industrial system would be around 275 billion euros; in the most dramatic scenario, with a war economy lasting all 2020, then the collapse would be over 600 billion in the two-year period 2020-2021. A shock equal to almost a third of the turnover of the Italian production system. Almost no company has been able to make predictions for 2020. Among the Italians, Ferragamo did it, which said that if the current situation remained unchanged until the end of March, a 25 to 30% loss of revenues is expected in the first quarter of 2020 on an annual basis. A global look at the price lists giving by the UBS analysts , who are now talking of the fastest "Bear" market in history, referring to the sudden and rapid drop in stock exchanges. UBS analysts observe that since 1945 the most pronounced drop from the highs has been 34.5%. Applying it now, the S & P500 should find its lows around 2,200 points (yesterday it closed at 2,386). Another simulation predicts that against a 10% drop in profits and with a price/earnings of 16, the balance value of the S & P500 would be 2,375 points. But if Corporate America sees profits fall by 30% this year, as many already predict, then the S & P500 could continue to drop to 1,800 points. THE CRASH OF THE AIRLINES. The alarm launched by the airlines from British to Lufthansa to EasyJet on the blocking of flights that is likely to last for a long time will impact on profits and, therefore, on prices on the Stock Exchange. It is evident to see how much the carriers have already lost on the price lists. IAG, the holding company that controls the British Airways, has lost more than 60% of its value since February 19. Lufthansa has almost halved the prices; Easyjet has left 60% on the field. After The Airlines , the next shoe to drop is going to be The Car Industry. Another major sector that is heavily impacted is the car sector: from FCA to Peugeot to Renault. Almost everyone has announced plant closings in Europe. On the stock exchange, the result is that FCA has lost 40% of its value in less than a month. Renault more than 50%; Volkswagen -40% and so on. And even the most resistant luxury has suffered: the average fall in European fashion stocks has been 30% since mid-February. DEFENSIVE TITLES ARE NOT SAVED. And not even the most defensive stocks like pharmaceuticals and utilities have shown resistance to the outbreak of the virus. Just to give an idea, a title such as the Italian Terna which has increased the dividend policy, operates in a monopoly with regulated tariffs and has a gross margin on revenues of 70%, however, falling from 6.7 euros by February 20 at 4.8 yesterday. As you can see, no one is saved on the stock exchange. But the market is only the amplified mirror of the underlying economy. And the signals it sends are that the generalized sell-off implies very gloomy prospects for the performance of the economies in the coming months. This summarizes the picture that has never been so gloomy. The current situation is also worsened by the fact, so far, that the spread of the virus has triggered simultaneous shocks unprecedented for demand, supply, and financial conditions. The more the virus spreads, the greater the number of economic "sudden stops" around the world, and, consequently, the market will need more time to recover. Initially, we hoped that the recovery had a "V" trajectory, then "U" and, potentially, also "L." Conditions could remain unchanged or even worsen for longer than initially estimated. A simultaneous stop of supplies and a reduction in growth will necessarily translate into lower earnings and greater difficulties on the debt front. The implication of these developments is that, despite the drop in bond yields, as financial conditions become increasingly restrictive for companies, there will be a greater risk of default on the debt markets, and the wave of buybacks. Which in the past has served to bring up the stock markets, will stop abruptly ". This system is designed to benefit globalists, government bureaucrats, and aristocrats or in the USA old elite business money. If anyone else thrives, it is a byproduct of the aforementioned system. The stock market has always been a market designed to benefit the people mentioned. They will cleanse the system when they feel it needs to be cleansed as they have done with all previous market crashes. Until then, you will continue to see those stocks do their magic. For anyone outside the stock market elite, that makes money count your lucky stars. Well, if you didn't sell into 'strength' today, you're out of luck. You will not see this price range again for a while. Tomorrow (at the latest Thursday), you will see an 18,000 print. A Lil stall after that, and the REALLY big leg down. It's pretty much baked into the cake at this point. The fed is actually being gracious to investors. They're telling them to get out if they need mone. And they're giving them ample opportunity every third day. Selling today will net any long equity holder ten percent this week. I would imagine there's going to be a lot of overnight sell orders hit in the morning. Absent fed intervention, we'd be at about 10,000 right now. It's heading there anyway, but they're doing their best to give retail all the chance they need to claim some badly needed cash right now. The promise to keep the market open no matter what was real leadership, and I'm impressed with the call. Trump is starting to get back in sync with events. This was The Atlantis Report. Please Like. Share. Subscribe. And please take some time to subscribe to my back up channels. I do upload videos there, too, on a daily basis. You'll find the links in the description box. You will also find a paypal link if you want to make a donation. Thank You. Thank You.