Friday, July 17, 2015
Is Mr. Summers Correct? "The financial media forgets: Crises do not unfold in just a few weeks."
July 17, 2015
"The markets bounced this week because... honestly it's options expiration week and Wall Street traders are using any excuse to gun the markets and shred anyone who sold call options last month.
The financial media, as usual, believes that the bounce is due to some positive change for Greece or China. Both both of those countries continue to witness their financial systems implode.
The financial media forgets: Crises do not unfold in just a few weeks.
Look at the Tech Crash... stocks experienced over EIGHT prices moves greater than 16% over the course of 16 months.
Every single bounce was heralded as a sign that that "the worst was over,"...but it wasn't... and stocks continued to work their way down DESPITE the bounces, until they lost over 77% in two years' time.
The same thing is happening today... China, the third largest economy in the world, is imploding, with both its economy AND its stock market in collapse.
Indeed, the China chart looks almost EXACTLY like the NASDAQ did when its bubble first burst.
Small wonder that institutional investors and corporate insiders are using the bounce in stocks to dump shares by the truckload. In short... the next Crisis is here... ."
Phoenix Capital Research