The mainstream media is running stories about how an eerie comparison can be made with 2007 and what is currently happening in markets.
The first comparison that is made is that the yield curve is inverted. Let’s go back in time and examine what happened with the yield curve in 2007.
The yield curve actually went inverted in November 2006:
It took markets another 13 months from the first inverted yield curve signal to actually turn down in late 2007:
Now let’s compare history to the current market. The yield curve has not yet given any inversion signal. Use this yield curve tool on Stock Charts to verify. We haven’t even had a flat yield curve signal yet.
Comparisons of the yield curve to 2007 are simply incorrect. The comparisons are more click-bate and fear sells headlines than they are a true representation of reality. Of course the motive of mainstream media groups wanting the economy to appear worse than it really is going into the 2020 Presidential Election cycle is not lost on us either.
The next comparison that is made is that Ben Bernanke was positive about the economy in 2007, right before the stock market crashed and the economy went into a recession. Let’s go back in time and see what Ben Bernanke said.
Markets topped in October 2007 following the Fed’s September rate cut. In November 2007, Ben Bernanke said there wouldn’t be a recession. Bernanke told a congressional committee: “Our assessment is for slower growth, but positive growth, going into next year.” The U.S. economy entered into a recession in December 2007.
Now let’s compare what Ben Bernanke said to what Jerome Powell is saying in the present. In September 2019, Powell said: “We’re not forecasting or expecting a recession. The most likely outlook is still moderate growth, a strong labor market and inflation continuing to move back up. Our main expectation is not at all that there will be a recession.”
While both statements are fairly close, is it an eerie parallel that is a harbinger of what’s to come? Or instead is it what we already know, the Federal Reserve is just putting the most positive spin on the economy?
Understanding the Stock Market and the Establishment
The Federal Reserve has ALWAYS put a positive spin on the economy, regardless of where we are at in the economic cycle. The Federal Reserve will never be your trading buddy and tell you when we are going into a Bear market and economic recession. It’s never going to happen folks so stop thinking that it will.
The corporate mainstream media has never alerted the public to an imminent crash either so stop thinking that they will. The media is owned by a handful of corporations and special interest groups whose agenda is for themselves and not for you.
The corporate mainstream media and the Federal Reserve are part of a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth, and put that money into the pockets of a handful of large corporations and political entities.
We saw this first hand in the wikileaks documents where Julian Assange exposed the Democrats meeting with large international banks to plot the destruction of U.S. sovereignty in order to enrich these globalist corporations and the candidates that they give money to.
A whopping 90% of all media is owned by just 6 large corporations that support the Democrat party and greater control over the American people via socialism. The corporate media is no longer involved in journalism. They are a political special interest no different than lobbyists and other financial entities with a political agenda and that agenda is not for you it’s for themselves.
You have to understand this corporate media globalist power structure as a retail stock trader. You can not afford to fall into the trap that this corrupt corporate propaganda machine is somehow “news” that will alert you to a stock market crash or economic recession before one actually hits. You’ve got to grow up and break yourself free from the tit of mainstream media news milk if you expect to survive as a trader long-term.
Don’t get me wrong. Not everything published by the mainstream media is corporate propaganda meant to advance their own agenda. You will get good information you can make money from every so often. But don’t make the mistake that mainstream media will alert you that a recession is coming before it actually does. When the sh*t hits the fan, it’s every man for himself and institutional traders and corporate media will protect themselves first, before they report anything to you.
Why do you think that neither the mainstream media nor the Federal Reserve have EVER alerted the public to a Bear market BEFORE it actually happened? Why do you think it is that they trade over dark pools instead of over public markets like we do?
For example, back in 2008 we found out that Wall Street financial firms had rushed to Congress and that an emergency session was held to divert hundreds of billions of tax paying dollars to prop up various financial firms. We found out about this a day after it had happened. Worse, they changed trading rules and prohibited any retail trader like you and me from shorting financial stocks. Free markets are only an illusion and at rare times you can see the illusion when “free” is not in the corporations best interests. Another example, with the advent of cheap internet trading, they didn’t like how retail traders could trade in and out of stocks so quickly and so they stripped away our rights to actively trade by invoking a pattern day trader rule. Another example is that we are seeing this with the constant attacks against President Trump by globalist corporations. Peoples right to freedom of speech and to support the President over the internet is being taken away by corporations. Whether it be taking away your right as a trader to short globalist banking stocks back in 2007-2008, or taking away your right to support Republicans over social media sites, our freedom ends at the interests of the Establishment.
Take for example what happened last week with the Fed injecting $275 billion to prop up money markets last week (34% of the entire $800 billion tax payer bailout in less than a week). We found out about it many hours AFTER it happened.
In the Information Age, we are at the bottom of the totem pole when it comes to who knows what and when. Humble yourself and always remember that if you want to survive in this game long-term.