Moment Liam Dann realised his ‘Don’t Panic’ column last month may have been optimistic

By   /   March 4, 2018  /   10 Comments

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For the last decade, to avoid the horror of systemic financial market collapse in 2007/2008, $30Trillion has been printed and pumped into the global economy falsely creating the lowest inflation rates for 5000 years. That seems about as far removed from the concept of sound market fundamentals as The AM Show is from intellectual curiosity.

The mouthpiece of the right wing economic agenda in the NZ Herald, Liam Dann, was just one of a number of mouthpieces that rushed out ‘don’t panic’ columns last month when Wall St melted down.

Liam wanted to explain to Kiwi’s as they nervously saw their Kiwsaver accounts drop that no one should panic because as far as Liam was concerned, the market fundamentals were sound.

Which is an odd belief to hold.

For the last decade, to avoid the horror of systemic financial market collapse in 2007/2008, $30Trillion has been printed and pumped into the global economy falsely creating the lowest inflation rates for 5000 years. That seems about as far removed from the concept of sound market fundamentals as The AM Show is from intellectual curiosity.

The problem now for Wall Street is structural. All that printed money wildly speculating equities to unstable and bloated levels are ripe for a meltdown because the AI trading robots will simply cut across the human greed of now for the profit margins of tomorrow.

As bond yields rise, the droids will suck money out of stocks and plunge them into Treasuries at nanosecond speed faster than human traders can match.

This reality seems to have just dawned on Liam whose latest column acknowledges that there may well be a good reason to panic after all.

You know when the establishment tell you not to panic that it’s probably the moment for you to start quietly easing your way to the exit.

There is going to be one almighty crash because the superstructure of the system can’t keep holding up the vast sums of printed money that it’s been swamped by.

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10 Comments

  1. Sam Sam says:

    Yeah, hey, come on. Never be scared to take profit and scale out of any trade, employment, or what ever you are in if it gets… Well if youre doing stuff outside of the job description, ie the business model shifts and vevenue drys up and the works gone.

    Businesses fail all the time and so they should, but the finance sector have been bailed out to the tune of, pretty much $30 billion. I mean central banks don’t just hand retail banks $30 billion bucks, they hand out bonds, which then gets re-collateralised on the bond auction markets, because it makes that $30 billion debt a whole lot worse.

  2. Nitrium Nitrium says:

    I couldn’t put anything that Bomber said better myself. This is a very mature and overbought market based mostly on ever expanding leverage (debt), and it’s set for a crash of epic proportions. How central banksters react to this reality is anyone’s guess, but I expect a lot of freshly printed currency in yet another attempt to paper over the debt (and “too big to fails”) resulting in massive inflation (much more than last time).

  3. countryboy says:

    https://www.theguardian.com/society/2017/mar/04/crash-1929-wall-street-what-the-great-depression-reveals-about-our-future

    There’ll be plenty of cheap cars around for the discerning buyer though.

    NZ will be fine, comparatively. We have lots of the essentials. Imported foreign goods will be unaffordable, so just as well we export FOOD ! And WOOL! And TIMBER! And FISHES!

    We should also export financial advisors, banksters, insurance companies, lawyers, loan sharks and any moron who thinks buy-now pay-later is a sound financial plan.

    The only financial plan to have is one where there is no debt.

    I see a whole lot a chickens comin’ home ta’ roost.

    Sadly, the ones who should pay the highest price are the architects of the shit storm heading to the fan, but, as always, it’s the common person who must take to the roads while the crooks make off on holiday until it all blows over.

  4. Peter Bradley says:

    This is an excellent article. More like it please. There’s not enough of them in any NZ media.

  5. Historian Pete says:

    The problem for the average punter is what do you do to make it most likely that you will survive the financial cataclysm .No asset classes are guaranteed to survive intact. None. The most you can do is to have a balanced portfolio of shaky assets, and a survival pack that includes tasty recipes for road kill, and then pray to your God, knowing full well that he or her [or Transgender] has not taken a blind bit of notice any time in the past!

  6. Afewknowthetruth says:

    Well said, Martyn.

    The scumbags who are in control will, of course, do everything they can to prevent the masses knowing they are being screwed and that the system has no long-term future.

  7. Helena says:

    Aren’t we owned by China?
    https://www.nationaldebtclocks.org/debtclock/newzealand
    California and Hawaii would seem to be owned by China which also owns 96 yr lease on Darwin Port.
    http://www.rense.com/general85/give.htm
    https://www.youtube.com/watch?v=7t8xeNwTKls
    I guess the politicians, CEOs and bankers have all made sure they’re okay for when the Chinese knock on the door. And of course Winston will have done his best to warn everyone.
    Lucky old us in the country of “you don’t know how lucky you are” we were distracted by rugby, racing and beer for too long.

  8. Stripey says:

    Printing money is neither capitalism or the free market at work. It’s intervention.

    • CLEANGREEN says:

      It’s a fools paradise when youn can print money to get out of the $11.7 Billlion hole or 111.7 Billlion hole; –

      “which ever comes first.”

      Time to wake up kiwi.

      We will all repeat what ‘they’ have already done to Greece.

  9. Afewknowthetruth says:

    ‘From Euphoria To Panic: Retail Investors Fled Stocks In February’

    https://www.zerohedge.com/news/2018-03-05/euphoria-turned-panic-mom-and-pop-investors-flee-stocks-february