Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Jump 1%
By: Chris Mullen, Gold Seeker Report

The Stock Market Economy
By: Peter Schiff

Ira Epstein's Metals Video 11 14 2018
By: Ira Epstein

Another Gold Spec Short Squeeze Pending
By: Craig Hemke

Golden Arrow Chairmanís Update
By: Golden Arrow Resources Corporation

Merk Research - U.S. Equity Markets
By: Merk Research

As Oil Plunges, Energy Junk Bonds Turn Dangerous ó Again
By: John Rubino

$2.06 Crude Target Absurd but Useful
By: Rick Ackerman

Asian Metals Market Update: Nov 14 2018
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Hold Steady While Oil Slumps 7%
By: Chris Mullen, Gold Seeker Report


GoldSeek Web

Is It 2007 All Over Again?

 -- Published: Thursday, 6 November 2014 | Print  | Disqus 

By Graham Summers


The markets erupted last week to new highs on the Bank of Japanís announcement that it would increase its massive QE program.


The Yen collapsed on the news and is now on the cusp of breaking a multi-decade support line:



While US stocks eked out a new high:



This move is very reminiscent of the 2007 top. At that time we had a top, followed by a quick correction and then a final blow off to eke out new record highs:



It is not merely the market that is mirroring the 2007 top.


1.    Corporate debt is back to 2007 PEAK levels.

2.    Stock buybacks are back to 2007 PEAK levels.

3.    Investor bullishness is back to 2007 PEAK levels.

4.    Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.

5.    The leveraged loan market is flashing major warnings.

6.    Corporate insiders are dumping shares at a pace not seen since the TECH BUBBLE TOP

7.    Numerous investment legends have warned of a coming crash.

8.    Investor complacency is at a record LOW.

9.    The Fed has confirmed QE is ending this week, so the juice is cut off for now.


The Fed has succeeded in recreating the same environment that existed in 2007. Once again we have rampant risk taking, excessive leverage, and a stock market bubble.


The only difference is that WHEN (itís no longer a question of IF), stocks collapse this time around, the Fed has already spent just about ALL of its ammunition.


         Interest rates are at ZERO, so the Fed cannot cut rates.

         The Fed has spent nearly $4 trillion in QE, so announcing a new QE program wonít accomplish much.


This leaves other minor policy changes, verbal interventions, and of course, the nuclear option of outright buying stocks. The Fed has been effectively doing this via QE for four years by giving money to Wall Street to buy stocks, but the Fed could always opt to do what the Bank of Japan does and simply buy stocks itself.


However, itís not clear what any of this would accomplish. Stocks might move higher, but the accompanying economic woes wouldnít go over well, especially given that the Fed is already in the political hot seat due to its total lack of oversight and its cozy relationship with the Big Banks.


Given that the Bank of Japanís latest increase in QE was in fact made by a VERY divided board (the vote was 5-4 in favor of the increase), we can assume that the Fed would face similar pushback both internally and externally (particularly if the GOP takes the Senate).


In simple termsÖ weíre back in 2007, but the Fed will have very real limitations to what it can do when this bubble pops. And it will pop in the not so distant future.


Donít let the second round of the financial crisis crush your portfolioÖ we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.


You can pick up a FREE copy at:


Best Regards

Phoenix Capital Research

| Digg This Article
 -- Published: Thursday, 6 November 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2018 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.