When you think about the “herd” mentality and where we’ve been and where we’re headed - It’s easy to see that the next leg down could result in very violent aggressive selling, unlike anything that we’ve ever witnessed in our lifetimes. Next time around, some of the options the FED has to keep the ship afloat may be more limited. This is a bullet list of some of the issues that will accelerate the selling - when it does happen.
* Weakening Dollar
* Higher Interest Rates - More Expensive Debt - Loss of Risk Appetite.
* Bloated Fed Balance Sheet - Unable to Hold More worthless assets
* Increased Losses - Commercial and Residential.
* Less “Gullible” public - “We won’t get fooled again” mentality.
* Panic Selling - Buy and Hold Mentality becomes a thing of the past.
* Sellers that have gotten “Close” to even will sell and go to safe assets
* Money Markets start to Break the Buck - Government refuses to back CP market
* Yuan/Remnibi Offshore Bonds - Options for the rest of the world.
* Dollar Failure - as reserve currency - US Government Losing Control of Finances
* 10% Unemployment and Rising -
* Declining Tax Revenues - Cities and Towns.
* Angry Electorate
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