Megabank Warns Recent Stock Crash was Only an “Appetizer” to “Main Course” of a Major Crash

By Matt Agorist

“The new law will create inflation whenever the trusts want inflation. From now on depressions will be scientifically created.” ~Congressman Charles A. Lindbergh, after the passage of the Federal Reserve act 1913.

As Morgan Stanley rakes in record-breaking billion dollar profits, their outlook on the rest of the market is bleak and according to the megabank, the recent crash in the stock market was just a taste of things to come.

“Appetizer, not the main course,” is how the bank’s strategists led by London-based Andrew Sheets described the correction of late January to early February. Although higher bond yields proved tough for equity investors to digest, the key metric of inflation-adjusted yields didn’t break out of their range for the past five years, they said in a note Monday, according to Bloomberg.

“Our cycle models suggest that [developed markets] remain in the late stages of a late-cycle environment,” said Sheets. “Rising equities, rising inflation, tightening policy, higher commodity prices and higher volatility are (in our view) a pretty normal pattern if that view is correct.”

Earlier this month, a series of market corrections sent stocks down 10% in a single day for the first time in two years. Although it was brief, the correction, according to Morgan Stanley is just the beginning. And, the megabank is not alone in their assessment.

With the market stable for now and the Dow having recouped about half of its recent losses despite Tuesday’s 255-point slide, it’s time to plan for the next scary plunge, USA Today reported.

“People should take this as a reminder of how markets behave,” says Brad Bernstein, senior vice president of wealth management at UBS Financial in Philadelphia, referring to the 10% drop that stung investors during nine worrisome days. “They have been spoiled by a long period of low volatility and no market corrections.”

To top off the ominous warning from the bankers, the president of the Federal Reserve in Texas has sounded panic this week over the level of US debt.

As ZeroHedge reports:

Nearly a decade after the US unleashed its biggest debt-issuance binge in history, doubling the US debt from $10 trillion to $20 trillion under president Obama, which was only made possible thanks to the Fed’s monetization of $4 trillion in deficits (and debt issuance), the Fed is starting to get nervous about the (un)sustainability of the US debt.

The Federal Reserve should continue to raise U.S. interest rates this year in response to faster economic growth fueled by recent tax cuts as well as a stronger global economy, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday.

“While addressing this issue involves difficult political considerations and policy choices, the U.S. may need to more actively consider policy actions that would moderate the path of projected U.S. government debt growth,” Kaplan said.

Ironically enough, the Federal Reserve has said very little over the last decade as the federal debt skyrocketed by $10 trillion. Indeed, under Trump’s new budget, the debt is on track to increase another $10 trillion in the next decade.

What’s more, as these elite money changers funnel the wealth upward from the masses using programs like quantitative easing, they are systematically destroying the US dollar through inflation and hedges against foreign countries who are moving away from it to avoid US imperialism.

When the day of reckoning comes, Americans will be left footing the bill and holding worthless paper.

This is the reason cryptocurrencies provide so much value and why they are a threat to the establishment. They take the power of a centralized form of monetary control and decentralize it.

The monetary system is set up to empower those who control it. This is why we are seeing so many attacks on the crypto world and it is also why we are seeing the money changers hedging their bets that crypto is the future.

While the outlook may seem bleak, those who pay attention and plan for the worst while hoping for the best will use this an opportunity to flourish.

As former Congressman Ron Paul recently said,

I think our stature in the world and our empire will end, and that’s when, hopefully, the doors will be open and [people will] say, ‘Hey, maybe these libertarians have some answers to this.’

Now may be a good time to get your answers ready.

Matt Agorist is an honorably discharged veteran of the USMC and former intelligence operator directly tasked by the NSA. This prior experience gives him unique insight into the world of government corruption and the American police state. Agorist has been an independent journalist for over a decade and has been featured on mainstream networks around the world. Agorist is also the Editor at Large at the Free Thought Project, where this article first appearedFollow @MattAgorist on Twitter, Steemit, and now on Facebook.

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4 Comments on "Megabank Warns Recent Stock Crash was Only an “Appetizer” to “Main Course” of a Major Crash"

  1. Woodrow ‘the treasonous’ Wilson should be exhumed and hung upside down for what he did.
    On 12/21/1913 he signed over the unfederal b.s bank of the U.S. to the unholy goat worshipers.
    Sacrifice the old goats.

    • Woodrow seems to have truly regretted his action: ”I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world …. a Government by the opinion and duress of a small group of dominant men.” And who knows what pressures were brought to bear on the man. Lincoln was assassinated for opposing the banksters with his “Greenbacks.” Probably similar motive for Garfield and McKinley.

      In re possible pressure, Wilson also said: “Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacturing are afraid of somebody, afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive that they had better not speak above their breath when they speak in condemnation of it.”

      Speaking of traitorous behavior, everyone’s popular hero, FDR, deserves top honors in that category for having deliberately left the Pearl Harbor fleet exposed, knowing full well the Japanese attack was coming. Moreover, FDR did not speak up, nor has any president since, about the Fed and its role in the Great Depression, or about the fundamental crime of international private banking/usury—the Elite’s death grip on nations and people.

  2. Article says, “People should take this as a reminder of how markets behave…” I suggest people should take this as a reminder of how markets are manipulated and made to behave by the financial elite, who invented and control it.

    Catherine Austin Fitts, Assistant Housing Secretary – Federal Housing Commissioner under Poppy Bush, and also former partner and member of the board of directors of Dillon Read investment bank, has said that anywhere from $500bn to a $trillion of laundered drug money flows annually into the US financial system. This information is given in Fitts’ 6-part series, published by the “Narco News Bulletin,” entitled, “Dillon, Read & Co. Inc. and the Aristocracy of Prison Profits.” It’s in Part II, subtitled, “Narco Dollars in Mena and LA, Insider Deals at Dillon Read and Massive Mortgage Fraud in HUD related to Iran-Contra,” in the section entitled “Narco Dollars in the 1980s —South Central, Los Angeles” in the paragraph beginning: “With the DOJ-CIA Memorandum of Understanding…” Part I, containing the index to all parts, is at Part II:

    Fitts’ series is a must read for anyone who believes that the financial system and markets operate ‘according to Hoyle,’ as we so often are led to believe by analyses such as this, and that the US has any fundamental interest in stemming the international drug trade. Also some great ‘hidden history’ there with many names named.

    Part of descriptive paragraph (3rd) in Part 1: “…we see the patterns of the dominant business model operating in our politically managed economy today. We see how private investors arrange for new laws which are contrary to societies’ [sic] best interests. With the help of revolving doors between board rooms, law firms and high level government positions, large government contracts and purchases are engineered which increase the value of private stock investments. Those who enjoy rich stock market profits then funnel large political contributions to the political parties and politicians who engineer the laws and contracts.”

  3. A comment of mine posted here on 2/24/18 is on hold for “approval.” AP seems to be doing this arbitrarily. There is no explanation, they don’t respond to queries. Some comments disappear permanently, others show up later – one of mine two weeks later. You can’t call the latter censorship, but it virtually is, since comments appear after the conversation is over for the most part, with many fewer readers having seen.

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