Source: Bonner/Bonner And Partners
“The last leaves are falling from the trees. And the last days of December are counting down, like the quiet moments before an execution….If the stock market keeps sliding, a lot of problems will disappear – the trade war, the search for a chief of staff at the White House, the ‘shutdown’… Nancy Pelosi, Trump. Who will care about any of this when the Dow loses 10,000 points?….Worried about inequality? Just let the correction do its work. The rich will be taken down a peg. On Friday, for example, the selloff took stock prices down by more than 2%. Since the whole stock market is valued at about $30 trillion, a 2% drop shaves about $600 billion off balance sheets. And that’s in addition to the 10% or so they were already down. Or about $3 trillion in all. But hold on… there’s a long way to go. By our estimate, the rich have gained about $30 trillion in total (from their investments in stocks, bonds, real estate, rare artwork, and collectibles) from the fake money system and the manipulation of interest rates by the Fed. If the stock market gets cut in half (which we expect), that alone will take care of half the problem….Alas, it’s not just stock owners who take a beating. Stocks represent real companies. Companies have owners, bankers, suppliers, employees… and creditors. All of them lose. Employees are laid off. Bonuses are reconsidered. Expansion plans are shelved. Purchases are rescinded. Business implodes. And the weakest companies are unable to pay their debts. Then, of course, the whole credit industry gets the shakes. The weaker lenders collapse immediately. Stronger ones call in their loans – putting further pressure on the wobbly companies. But heck… it’s supposed to work that way. Panics, credit crises, and bear markets – like maggots on dead flesh – clean up market economies. And, still looking on the bright side, we personally will lose millions; but it will be worth it to see the dumbbell rich get what is coming to them. Stay tuned…”
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