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Message Subject BREAKING: The Fed is sharply increasing the amount of help it is providing to the financial system
Poster Handle Anonymous Coward
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Thanks for your feedback. If this is indeed what is happening (per Gregory Mannarino), we should expect these liquidity injections to continue and to accelerate until the end, which must be getting fairly close now.

I wish we could get a feel for how long this can go on. I suppose until one of three things happens:

(1) Public confidence in the financial system drops off a cliff, and people start pulling their money out of the system in large numbers (that is, bank runs). This is not likely to happen as most people are not paying attention and/or are locked in via 401k plans and the like, not to mention having debt which they are unable to pay off at this time.

(2) The bankers arbitrarily decide that they are ready to pull the plug, which is not likely to happen as then they will receive the blame for crashing the system.

(3) A black swan event occurs, similar to 9-11, potentially starting WW3. This event could then be blamed for huge convulsions in the financial system.


Assuming the bankers will eventually reach a point where they can't keep the situation hidden any longer, then we have to expect something like (3) to occur. It's the only way out where the bankers don't get blamed and the people keep their money in the system until it's too late. The only gauge for us will be to watch how fast the liquidity injections are accelerating, under the assumption that massive acceleration indicates we are getting very close to the end.

Again, I don't know if this is correct, but it seems logical to me. Thanks.
 
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