10 Key Events That Preceded The Last Financial Crisis Are Happening Again

[marmar]

10 Key Events That Preceded The Last Financial Crisis Are Happening Again


If you do not believe that we are heading directly toward another major financial crisis, you need to read this article. So many of the exact same patterns that preceded the great financial collapse of 2008 are happening again right before our very eyes. History literally appears to be repeating, but most Americans seem absolutely oblivious to what is going on. The mainstream media and our politicians are promising them that everything is going to be okay somehow, and that seems to be good enough for most people. But the signs that another massive financial crisis is on the horizon are everywhere. All you have to do is open up your eyes and look at them.

Bill Gross, considered by many to be the number one authority on government bonds on the entire planet, made headlines all over the world on Tuesday when he released his January Investment Outlook. I don’t know if we have ever seen Gross be more negative about a new year than he is about 2015. For example, just consider this statement…

“When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”

And this is how he ended the letter…

And so that is why – at some future date – at some future Ides of March or May or November 2015, asset returns in many categories may turn negative.

What to consider in such a strange new world? High-quality assets with stable cash flows. Those would include Treasury and high-quality corporate bonds, as well as equities of lightly levered corporations with attractive dividends and diversified revenues both operationally and geographically. With moments of liquidity having already been experienced in recent months, 2015 may see a continuing round of musical chairs as riskier asset categories become less and less desirable.

Debt supercycles in the process of reversal are not favorable events for future investment returns. Father Time in 2015 is not the babe with a top hat in our opening cartoon. He is the grumpy old codger looking forward to his almost inevitable “Ides” sometime during the next 12 months. Be cautious and content with low positive returns in 2015. The time for risk taking has passed.

So why are Gross and so many other financial experts being so “negative” right now?

It is because they can see what is happening. .................(more)

The complete piece is at: http://www.zerohedge.com/news/2015-01-07/10-key-events-preceded-last-financial-crisis-are-happening-again

[CAG]

1. Sounds like he's talking about modest

Equity losses, ie 5-10%, not GWB depression numbers. Nothing out of the ordinary especially after the + double digit returns of the past several years.

[dixiegrrrrl]

2. I caught that earlier at the site...

One or 2 might be poo-poo'd, but when you look at all the things that are happening right now...

[Hutzpa]

3. .

“When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”

Is he saying this because the republicans have taken both houses of Congress and he knows something that we don't know? otherwise this is just a false alarm, the economy is rebounding nicely which to me says the country is undergoing a steady climb as oppose to a boom and burst philosophy.

[NewDeal_Dem]

4. IMO, zero hedge is a fearmonger with a poor track record.