Lynette’s Flash Five – Stock Market Manipulation -CalPERS Pension – World’s Oldest Bank Needs Bailout
I’m the chief market analyst here at ITM TRADING and today I’m just going to update you on some things and then talk about two very important things now there is discussion of lopping off zeros on the Indonesian currency that’s because they say they want to simplify it. Well I don’t know if they talked to the people in Venezuela or in India. I don’t think changing the currency and demonetizing it made it any simpler.. but ok?!
Stock Market Manipulation?
Another thing that’s kind of interesting in here today. You know we are we’ve been trying the Dow has been trying to break 20,000 all week and it hasn’t done it yet but i was listening to CNBC this morning and specifically Bob Pisani which is where this article is from and the number one reason why you see the Dow breaking or near breaking 2000 is with the central bank help so we know that this is artificial and the markets are now rallying on the greater fool theory which means that they are counting on somebody even dumber to be willing to pay even more for severely overvalued stocks if you have your wealth in there say thank you very much like the insiders are doing and sell out do with the smartest guys in the room are doing for themselves not what they are telling you to do ok now we’re going to get to the really important stuff and we are really starting to see a big break in the pension plans i think last week or I think was last week where we told you that the Dallas pension plans were withdrawals were halted ok now we have notification from CalPERS that they have that they have cut benefits to those people that are already getting benefits plus future benefits by sixty percent because all all of these pension plans whether their state federal or corporate are severely underfunded so this is what you’re counting on to retire you might want to rethink that choice because the veneer is now cracking really noticeably every member to going to have to read this they CalPERS says that they are only sixty-five percent or they only have sixty-five percent of the funds that they need to pay out the benefits that they are required to and they also have set everything up anticipating that they would get seven-and-a-half percent return on their investments so they lowered it now to seven percent but here’s the thing you’ve got government bonds that are issuing that are yielding less than three percent so you tell me unless they’re the manipulated markets where you going to get seven percent return that means that these funds are even more severely underfunded than what they report so remember we did a full webinar on the retirement plan time bomb in the archives go see it if you haven’t yet.
BANCA MONTE de PESCI Bailout Italy’s Banking Crisis
and then here’s the big one though because this could certainly trigger an interest rate derivative event where you have BANCA MONTE de PESCI which is the oldest bank in the world that really first they’re going to do a bail-in so you depositors those that have bought those bonds they don’t understand what they’re buying because nobody reads the contracts they will be bailed in but that isn’t nearly enough to save this bank so they are also now stepping in and bailing them out and my personal opinion is that this is what we will see more and more and more yeah depositors will be billed him first then taxpayers will do the bailing out but when the interest rate spiked to such a level they cannot be big old in or mailed out because remember eighty-two percent of the derivatives of .7 quadrillion global derivatives and that’s notional value our interest rate related and the more that this kind of thing happens the higher interest rates are likely to go once they lose full control of these markets and that’s coming so hope you have great holidays and no this was a great news but like us on FACEBOOK and subscribe and we’ll let you know the next time that we’re doing it check out our YOUTUBE channel and give us a call 888 696 4653 we are here to be of service. HOHO everybody bye-bye
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Chief Market Analyst, ITM Trading