Risk is off.. All Risk Assets are being sold Globally.... As Dennis Gartman said a week and a half ago... this is really scary.... The fact that their is no fear out their at all shows you how completely the media has yet to pick up on this ... which is typically the cash...... Japanese equities in a bear market, Chinese equities have now entered a bear market....
Brazil is melting down
RIO DE JANEIRO — Protests continued across Brazil on Sunday, capping a week of unrest that saw more than 1 million people marching across the vast country demanding an end to corruption and social inequity.
More than 60,000 marched over the weekend, and a major protest is scheduled next Sunday for the final in Rio of the Confederation Cup soccer tournament, a run-up to next year's World Cup and 2016's Olympic Games, which are being held in Brazil.
What began as a protest against a 7% rise in bus fares has ballooned to encompass long-simmering issues such as health care, education and corruption.
"We were a million people and we each had a different cause!" Cristal Moniz, 30, a teacher said of Thursday's massive demonstrations as she sat on the beach here at Copacaban
but they are all pissed off.... as investment psychologists will tell you and Elliott wave is based upon the fact that Markets are governed by the mass mood swings of the population at large... it's a pendulum that moves from periods of fear which is very acute and creates very specific culminations or capitulation.... where as Eurphoric tops tend to bubble out and different facets of speculative euphoric tops occur at different times....thus the term a market top that is rolling over and the smart money is scale selling to the dumb money... who are destined to have some losses on their investment book.... during a secular bull market , one is lucky that they can buy and hold and are bailed out of the period shake outs or even a Massive Crash such as oct 19 -20 1987....... and thus the multiyear conditioning is programmed into the minds of very smart people, lawyers, Doctors, corporate executives... very successful entreneurs... and of course the legions of 2 income families that are still pulling down 75 K..... 140 K or even 250 K a year in combined salaries and /or 1099 income... even corporate execs above these earnings and wealth levels have this reasoning process inculcated into their mind.....
Then we arrive at the secular Bear Market.... and the Secular Bear which has at least one or maybe two Liquidation Bear Markets as Richard Russell famously described the Jan 1973 to Dec 1974 complete wipe out.... It was really bad...Today even many seasoned market professionals and market historians feel that we had a Liquidation Bear Market in 2008... bottoming at SPX 666 on March 6th of 2009....
Unfortunately, many wise men such as John Taylor, the head of the world's Largest FX Hedge shop... FX Concept,.... I suspect that Bill Gross and El Erian are coming to this conclusion.... Jeremy Grantham... a most brilliant man o Grantham Mayo van Otterloo (GMO), a Boston-based asset management , Byron Wein, Barton Biggs.... John Mauldin, Jimmy Rogers, George Soros, ... I am sure Mr. Charles Munger is cognizant of this...... Marc Faber, Van Hoisington.... several additional seasoned professionals who John Mauldin features each Tuesday night on his "outside of the box" articles.... They know or are realizing that this is a SUPER CYCLE BEAR Market.... which is not your typical 30, 54 or 60 year cycle but a cycle that most likely last bottomed in 1719-1720 .... with John Law's Famous experiment with credit in France.... as the treasurer of the King and the Mississipi bubble also playing out in London......
When we look at the corruption of ficticious Fiat currencies and the policies of the major economies of the world..we need to have an economic event that brings about mass social change.....Unfortunately has not been pretty and the bankruptcies of some US municipalities is most likely the tip of the iceberg of the Insolvency of the way too many countries...
gmo.com 
worth a look
Jeremy Grantham: "We Have Been Conned"
Submitted by Tyler Durden on 05/07/2013 21:38 -0400
Ben Bernanke Gross Domestic Product Jeremy Grantham Volatility
The lessons of Jeremy Grantham's recent interview with Charlie Rose seem to be becoming increasingly prescient as the stock market surges to new highs amid a crumbling macro (and micro) economy. "Bernanke is whipping the economic donkey that can only grow at 1-2% as if it was a race horse growing above 3%," and unfortunately he will keep doing it "until the donkey is dead." As Grantham says, it is a "very dangerous situation to have the most powerful man in the world," doing this as simply put, the Fed, "does not have the tools to generate employment." But while Grantham's clarity on Bernanke's actions are unquestionable in their endgame, his views (below) on Keynes, debt, and wealth transfer are even more concerning. "We had this amazing experiment... but we have been conned into believing by the financial world that debt is everything."
Brief clip on Bernanke's actions...
zerohedge.com
the global markets are selling off and we will have some tough sledding this weekl..
your humble scribe,
John J Pitera |
