“Houston, we have a problem!”
Wall Street (and it’s bought and paid for regulators) have done it again.
They’ve set-up where the next major crash will take place…Europe. Specifically, the European Sovereign Debt market. This is as close to criminal activities as you can get.
Here’s why.
Fear, in Europe’s bond market, has forced their regulators to outlaw naked short selling of their government debt. (For a full explanation of short selling, see “…In Plain English (HERE).
Their reason for banning short selling of their debt is to “…prevent a crisis in sovereign debt.”
What these dummies don’t realize is, this stupid law will AMPLIFY the crisis.
Let me explain.
No one wants to buy Europe’s Government debt. It’s a major Ponzi scheme and they will eventually default on it. The bond markets know this. They’re desperate and are being held together with duct tape and bailing wire.
Here’s where things get ugly. In the middle of a crash, the only people buying are the short sellers. (They buy back or “close out” their short position to realize a profit)
If there are no short sellers buying in a declining market, the bonds will go “NO BID.” (NO BID means they can’t put a price on the bonds).
The result?
First, a flash crash followed by contagion (domino effect) into other markets. (Note: the bond market is twice the size of the stock market.)
Still confused? Go here (LINK).
This month’s “…In Plain English will “connect the dots” about this oncoming tsunami and show you how to drown from it.
Get your copy (HERE).
You’ll thank us later.
P.S. Premium subscribers have full access to our archives of “How to connect the dots.” (HERE)
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