Celente: The "Bailout Bubble" The Bubble to End All Bubbles

Originally posted by wycky
Hi guys,
This is the latest i received from Trends Research (Gerald Celente). Thought it may interest some of you.

KINGSTON, NY, 13 May 2009 -- The biggest financial bubble in history is being inflated in plain sight, said Gerald Celente, Director of The Trends Research Institute. "This is the Mother of All Bubbles, and when it explodes," Celente warns, "it will signal the end to the boom/bust cycle that has characterized economic activity throughout the developed world."

Either unwilling or unable to call the bubble by its proper name, the media, Washington and Wall Street describe the stupendous government expenditures on rescue packages, stimulus plans, buyouts and takeovers as emergency measures needed to salvage the severely damaged economy.
"All of this terminology is econo-jargon," said Celente. "It's like calling torture 'enhanced interrogation techniques.'
Washington is inflating the biggest bubble ever: the 'Bailout Bubble.' "This is much bigger than the Dot-com and Real Estate bubbles which hit speculators, investors and financiers the hardest. However destructive the effects of these busts on employment, savings and productivity, the Free Market Capitalist framework was left intact. But when the 'Bailout Bubble' explodes, the system goes with it."
The economic framework of the United States has been restructured. Federal interventionist policies have given the government equity stakes, executive powers and management control of what was once private enterprise. To finance these buyouts, rescue and stimulus packages -- instead of letting failed businesses fail and bankrupt banks and bandit brokerages go bankrupt -- trillions of dollars are being injected into the stricken economy.
Phantom dollars, printed out of thin air, backed by nothing ... and producing next to nothing ... defines the "Bailout Bubble." Just as with the other bubbles, so too will this one burst. But unlike Dot-com and Real Estate, when the "Bailout Bubble" pops, neither the President nor the Federal Reserve will have the fiscal fixes or monetary policies available to inflate another.
With no more massive economic bubbles left to blow up, they'll set their sights on bigger targets. "Given the pattern of governments to parlay egregious failures into mega-failures, the classic trend they follow, when all else fails, is to take their nation to war," observed Celente.

Since the "Bailout Bubble" is neither called nor recognized as a bubble, its sudden and spectacular explosion will create chaos.
A panicked public will readily accept any Washington/Wall Street/Main Stream Media alibi that shifts the blame for the catastrophe away from the policy makers and onto some scapegoat.
"At this time we are not forecasting a war. However, the trends in play are ominous," Celente concluded. "While we cannot pinpoint precisely when the 'Bailout Bubble' will burst, we are certain it will. When it does, it should be understood that a major war could follow."

[edit on 13/5/2009 by wycky]

I tried to do what they are doing, and to spend money when ur not supposed to in the hope of saving myself... I tried the expirement, and to test the theory they have, and well guys - the results = more debt for me..

Oh! so now I know why in the courts for a jury they don't want you to try the expirements at home, and just listen to the cops, etc.....hmmmm

reply to post by FX44rice


It's my personal opinion that this is one of the reasons that the gov't is holding onto the stimulus money and taking so long to disperse it.

This is probably the last bit of cash they can keep on hand before this whole thing blows wide open. What the gov't is doing with this whole bailout plan is similar to you or I going to the bank, taking out a personal loan for $1M, having no way to pay it back, and declaring ourselves millionaires!

I belive they are going to blame China after. they can not make any catastrophic 911 operation any more so some cybercaused collapse could be the nice cover up off all the mess they made in economy. it could be also some war in the Middle East but the dirty deals would be still possible to track. but a really nice virus eating most of a data and systems could be wonderful solution for that banksters.

so ahead they need to already prepare people for it:

www.abovetopsecret.com...

What are you boys and girls worried about?
The Fed will find that 9 Trillion $ in their jeans in the wash!
And print another 9 Trillion $!

Theres NO problem!
Every thing is peachy!

The dollar is from 1913 or something ?
Maybe the Dollar Death is overdue, the Nwo is just holding on trying to keep it going just afew more years as they know # is mid-way there, and to have two collapses of the currency in just a few years time, is to much ...They know global disasters are on its way and chaos will unsue veryone and the economy is of no value...

All indications are that the economy is actually recovering faster than expected.

Some housing markets are now showing an upward price trend, the unemployment numbers are beginning to level out, and the stock market has shown a stellar rise of around 20% since Feb - the strongest future recovery indicator there is.

Most significantly, the dollar is kicking butt on the Forex, the pound was trading at $2 not so long ago, now it's $1.50. If you print too many banknotes, you devalue the currency, and the dollar trend is UP.

On a personal note, my 401k is up 17% and my company just made our bonus numbers - so from a personal or national perspective I'm just not seeing the problem.

This guy is a day late and a dollar short with his doom mongering. Our economy is going to emerge even stronger from this than it was in 2007.

reply to post by Retseh

Some housing markets are now showing an upward price trend, the unemployment numbers are beginning to level out, and the stock market has shown a stellar rise of around 20% since Feb - the strongest future recovery indicator there is.

Housing prices have dropped.

www2.standardandpoors.com...

Delinquencies are accelerating.

And housing prices are not "the strongest indicator of recovery" .. you are buying into all the BS fed to you from the Housing BUBBLE ...

Most significantly, the dollar is kicking butt on the Forex, the pound was trading at $2 not so long ago, now it's $1.50. If you print too many banknotes, you devalue the currency, and the dollar trend is UP.

The Dollar has dropped to several month lows compared to World currencies.. is the exchange better then it was in 07? Ya, but only because Europe has fallen harder then the US, not that the US has recovered in any way.

On a personal note, my 401k is up 17% and my company just made our bonus numbers - so from a personal or national perspective I'm just not seeing the problem.

It's not a recession until it effects you. If we use your logic I have been unemployed since January... I guess that means we are in a depression!

This guy is a day late and a dollar short with his doom mongering. Our economy is going to emerge even stronger from this than it was in 2007.

Won't be hard to do, in 2007 our economy was cancer ridden and crippled from the inside out.. while the Gov showed up once a week to tell you not to withdraw your retirement savings and that all was just peachy.. while they themselves got out.

Turn off your TV.. it's lying to you.

wrong thread post

delete

[edit on 14-5-2009 by imd12c4funn]

Originally posted by Rockpuck
Housing prices have dropped.

Not true - latest news, they are on the way UP:

news.yahoo.com...

www2.standardandpoors.com...

And housing prices are not "the strongest indicator of recovery" .. you are buying into all the BS fed to you from the Housing BUBBLE ...

No one said that, least of all me, I said the STOCK MARKET is the best future indicator, which it is, and it's up again today so far.

The Dollar has dropped to several month lows compared to World currencies.. is the exchange better then it was in 07? Ya, but only because Europe has fallen harder then the US, not that the US has recovered in any way.

Exactly. There's a world recession but we are doing better than most - hardly cause for the doom mongering in the original article.

It's not a recession until it effects you.

If we use your logic I have been unemployed since January... I guess that means we are in a depression!

I was merely pointing out that the national indicators are good, and all my personal indicators are good. Where am I to find the evidence that supports the Chicken Little Hypothesis?

Sorry you lost your job though, all the best on fixing that.

Won't be hard to do, in 2007 our economy was cancer ridden and crippled from the inside out.. while the Gov showed up once a week to tell you not to withdraw your retirement savings and that all was just peachy.. while they themselves got out.

Turn off your TV.. it's lying to you.

Actually I did exit the market and put my money overseas in time to avoid the crash early in 2008, as did my friends, only idiots whine about the unfairness of being stupid and ill informed.

But now I've moved it all back to the US, and I'm making money on the market recovery.

Personally I'm also trading currency on the Forex, and I expect to clean up. You can open a free practice account on Forex.com I highly recommend it if only for fun.

People can sit there rocking back and forth muttering about either the impending financial meltdown or the end of the world in 2012 if they so choose, me, I'll be in the Bahamas.

Sorry to be so blunt, but there's so much negativity here it's like a disease.

Originally posted by Retseh
only idiots whine about the unfairness of being stupid and ill informed.

Idiots usually don't know they are stupid and ill informed until it is too late...

Its all about money!

Retseh is making his money. The Banks are making their money. ATS is making its money, and Gerald Celente is making his.

Everyone does their bit to make a buck. Some preach good times, spend spend spend, some host doom and gloom, oops I mean deny ignorance, whilst others make a buck from 'forecasting' ....

www.youtube.com...

Even the above does their bit for a buck

In fact I have to completely agree with Mr Celente here.

The bailouts are a complete looting of the US taxpayers from beginning to end.

I'm still coming to terms with something very strange that made me understand this was completely dysfunctional, and must actually be stopped. Government regulators of banks like the Fed or the SEC aren't going to stop it. The government executive or congress aren't going to stop it. Investigative reporting in the MSM, isn't going to stop it. This means people are going to have to stop it themselves, which is a bizarre ask in itself, considering people have trusted the government generally since the second world war, and aren't particularly interested in the idea that what the US government proposes to do is insane. That printing money is simply creating more debt, and that there is very little time before printing money will have $0.00c in the dollar impact on national gross domestic product.

The strange thing was this:

The Bush Administration, just prior to an election, circumvent the revenue origin clause in the constitution by stuffing the Emergency Economic Stabilization Act into existing legislation.

As they are debating the bill, voters from around the country email, fax, phone, snail mail and visit the offices of their congressional representatives, making it very clear that they are opposed to it, 100:1.

The bill was actually sponsored by Patrick Kennedy (that's the end of the Kennedys, in case anyone gave a flying which they don't), the House actually passes the bill, and the President signs it, and HR1424 becomes enacted.




Get this: 90% of the YES HR1424 representatives who committed this are voted back in!

I wont be holding my breath

I expect this to take a few years.. just enough time for me to get my degree

I disagree but not as a skeptic or debunker I feel his analogy is incorrect.

According to CNN today they have injected 6% of the bailout into the economy.

The balloon (not bubble) has a hole in it. Instead of letting it deflate and patch the hole or replace the balloon they are just adding more air to it from a massive air tank(bailout money).

Some of the smaller companies are trying to help patch the hole but the problem is the more air that goes in and the larger the balloon becomes the bigger the hole gets causing drops at a much higher rate. So they add more air to compensate and it appears to re-inflate increasing the hole size again and deflating even faster.

The ups and downs on a daily or even weekly basis in stocks/bonds etc. means nothing right now. The question is when they run out of air in the tank and need a tank that now holds 4-5 times as much air to compensate for the size of the hole well you get the point.

In the end it's a waste of money and time. Just inject a bit more now and see everyone go ohhh housing's going up and watch a month later "in other news today housing prices plummeted again for the 4th time in 6 months".

Sure it happens normally all the time prices go up and down but when you try to force an upward trend in a poor economy all you do is make the drop that much further at the end. I'd rather jump off the roof of a 1 story house than a 15 story one as I know I can survive, might hurt but so what sometimes the better option is to get up scrape off your knee's and move on after learning the lesson.

Some of you who invest in the stock market really need to see the big picture. If the stock market going up is any indication of a US recovery we are all in trouble. US companies, atleast many of the major ones including GE are overgrown and riddled with debt. They are far from healthy. And people are going to keep pumping money into them? LOL. The stock market is one of the main reasons why we got into this mess. It was overinflated for the last 10 years. Plus so what if the stock market goes up? Who cares? If American manufacturing is dead, jobs are destroyed, and our country is up to its eyeballs in debt how is stock market going to matter? Do you think companies are going to start hiring people as fast as they've been laying them off? The minute they do that they'll start losing money again. The stock market is in no way a true indicator of the health of our economy nor the health of our corporations. If the last year doesn't prove that to you I don't know what will. All that money people think they are going to make in the market is going to be taxed and spent on the unemployed who's company you are investing in just laid off.

The guy at the Car Lot is flying his balloons and is ready to give you a loan you can't believe is true ! Zero percent down and 12 months of no payments.

The car he is selling is no longer being produced by the manufacturer, but the 'agency' giving the loan for your purchase says they will back the warrenty as long as the company is solvent.

The loan money will be printed for your car as soon as you authorize the loan .... well, as long as they assume you may purchase it, they will go ahead and print the money up ahead of the agreement.

The gentleman waiting there behind you will be given his car for free based on the equity of the loan you 'will' make, and you will also be liable for his loan as well because his SUV payments became too large for him to manage.....

What bubble?.....

Originally posted by jeffsmathers
The guy at the Car Lot is flying his balloons and is ready to give you a loan you can't believe is true ! Zero percent down and 12 months of no payments.

The car he is selling is no longer being produced by the manufacturer, but the 'agency' giving the loan for your purchase says they will back the warrenty as long as the company is solvent.

The loan money will be printed for your car as soon as you authorize the loan .... well, as long as they assume you may purchase it, they will go ahead and print the money up ahead of the agreement.

The gentleman waiting there behind you will be given his car for free based on the equity of the loan you 'will' make, and you will also be liable for his loan as well because his SUV payments became too large for him to manage.....

What bubble?.....

And you can apply that scenario to credit cards, mortgages, student loans etc. And our government wants to spend more money by nationalizing healthcare. LMAO! This country is going to # and my heart bleeds for what we as Americans once were and believed in.

On the dollar is one area where Celente is completely wrong.

Don't confuse economic collapse with a "crash" of the USD.

The USD is 80% of the currency in the world, both as paper and electronically. That means it is the currency of choice in uncertainty, it's value is RELATIVE to other currencies.

EURUSD as a security on forex will FALL in the coming months, that means the value of EURO relative to $1 will decline, which simultaeneously RAISES the value of the USD.

We saw this occur very, very clearly in the middle of 08, and if present Paulsonomics continues, there will be another one.

www.godlikeproductions.com...

here it says he is a fraud. sorry it does not come up highlighted or maybe it will once i post it. lol

But be careful going to godlike production site as it has a lot of malware and spyware and can infect your computer.