Are You Ready For The Next Round Of The Financial Crisis?

When the Financial Crisis hit from 2007-2008, the Fed implemented a series of emergency strategies to deal with this.

Those strategies fall under numerous technical terms, but at their most basic, they consisted of cutting interest rates to zero and printing money to buy securities (US Treasuries and Asset Backed Securities).

Bear in mind, NONE of these strategies were designed to actually heal the financial system.  In fact NONE of them were really designed to even help the economy.

Basic common sense dictates that you cannot solve a debt problem by making debt cheaper. Similarly, QE was anything but revolutionary: the UK and Japan had previously engaged in QE and failed to create job growth or a sustainable uptick in GDP growth .

So what was the Fed doing?

It was saving the large Wall Street banks: the very groups that CREATED the 2008 Crisis. In doing this, the Fed failed miserably to address the roots of the Crisis. All it did was give a “FREE PASS” to the folks who created the Housing Bubble.

Which set the stage for an even bigger bubble… a bubble which is here.

By most historic metrics, the market is showing signs of a significant top. Here are just a few key metrics:

• Corporate debt is back to 2007 PEAK levels.
• Stock buybacks are back to 2007 PEAK levels.
• Investor bullishness is back to 2007 PEAK levels.
• Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.
• The leveraged loan market is flashing major warnings.
• Corporate insiders are dumping shares at a pace not seen since the TECH BUBBLE TOP
• Numerous investment legends have warned of a coming crash.
• Investor complacency is at a record LOW.
• The Fed has confirmed QE is ending this week, so the juice is cut off for now.

Note that EVERY item is back at 2007 levels: the very bubble atmosphere that caused the 2008 meltdown.

The stage is set for another Crash.

If you’ve yet to take action to prepare for the second round of the financial crisis, 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.

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You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwoge.html

Best Regards

Graham Summers

Phoenix Capital Research