Perfect! The Dow Jones Industrial Average hit an all time high on Friday, July 22, 2016. Get the “F” out of the market. Winter is coming.
The Panic – Run on the Fourth National Bank, No. 20 Nassau Street. Illus. in: Frank Leslie’s Illustrated Newspaper, 1873 Oct. 4, p. 67.
Billionaires Nick Hanauer and Asher Edelman have cautioned us. Liquidate your stock holdings, pay the taxes, and hold on tight.
Do you know what a BTO is? A “bespoke tranche opportunity.” Does that make it any clearer? Of course not. How could anyone understand what they are buying with that name?
Answer: BTOs are near identical to the derivatives (CDOs) that lead to the market collapse in 2007/2008. That is why they gave it that abstruse name. Financial institutions started selling BTOs in 2015.
This is like putting shaving cream on a balloon, scooping out a happy smiley face, and floating it, to sell as an airborne cream pie! Want one? Good, the market will give you a Full Disclosure memorandum which, although impossible to understand, will clearly identify that you are buying a balloon with shaving cream on it.
Most Wall Street firms are promoting a robust bull market and declaring that the American economy is the only safe investment (bet) in the world. Would you like to know how much money these same firms have in SHORT POSITIONS? I would. In fact, I think every licensed Securities Advisor should have to publish their short positions—or be barred from buying them!
It seems clear there is an inherent conflict of interest and violation of fiduciary responsibility when an advisor recommends one thing (invest in the market, making commissions, and driving up the prices) and then profits doing the exact opposite (buying leverage short positions to make a killing, when the market collapses).
I write about the financial markets in the Victorian era from the perspective of Victoria Woodull, who along with her sister, Tennessee Celeste Claflin, opened the first women-owned registered brokerage firm on Wall Street. They also published the first women-owned newspaper, and were part of the original suffragists, and forerunners of today’s Feminist Movement. They helped Cornelius Vanderbilt manipulate the Gold Scandal of 1969. (Read the historical novel: OUTRAGEOUS Rise to Riches, Volume 1 of the Victoria Woodhull Saga.)
Victoria tried to prevent the economic collapse of 1873 by becoming the first woman nominated by a National party as candidate for U.S. President. She also published the first American translation of The Communist Manifesto. Here is the Equal Rights Party platform in 1872, near identical to the issues of today.
After the re-election of Ulysses S. Grant, the boondoggle and political corruption of the Credit Moblier scandal led to The Great Depression. Yes! There was a first Great Depression.
The name was changed after the 1930s to the Panic of 1873, famous for the run on the banks, which did not have sufficient funds to honor depositors’ demands for cash. It also triggered the Long Depression in Europe, which lasted two decades. (Covered in SCANDALOUS: The Victoria Woodhull Saga, Vol. 2: Fame, Infamy and Paradise Lost, available Autumn 2016.)
Here is the timeline of past market disasters:
1873 – the original Great Depression
1930s – the current Great Depression
2016/7 – the newest, improved and biggest Greatest Depression
What will economists rename the depression that started on Black Tuesday, October 29, 1929?