So the ETF index market has experienced 200 billion in flowing while equities that invest in real stocks had 160 billion outflow. The market is in disarray. Investors are flowing to passive investing as if this is diskless risk. However this is unregulated SUPER RISK. A blood bath is about to take place as the World Bank and IMF have repeatedly warned. Our FED remains asleep just as it was in Sub Prime with sleep apnea of protecting the system.
Meanwhile Global banks in Japan and the EU are in revolt against negative interest rates. This policy of the EU and Japan using an untried experiment seeks to FORCE banks to when facing losses to store cash – to deploy cash to business and stimulate growth. Banks seeing cash now as a “cost” are planning to hold cash in vaults, and take it out of central bank storage.
This global BACKFIRE is a spit in the face of central bankers as to failed idiotic financial policy. The banks are having none of it. The trade war on economic terms is picking up velocity acceleration and momentum or VAM. VAM precedes contagion and SUPER CRASH.
We will of course keep a light on for you.
Berny Dohrmann – Chairman CEO SPACE