Is the Everything Bubble About to Burst?

Phoenix Capital Research's Photo

by Phoenix Capital Research

Friday, Nov 19, 2021 - 13:53

We are getting DARN close to a top of some kind.

The market is being propped up by fewer and fewer stocks. This week, the NASDAQ has had more stocks making new lows than at any time in since the March 2020 CRASH.

And the NASDAQ is at all-time highs.

Again, the NASDAQ is at all-time highs, but the number of NASDAQ stocks hitting new lows is approaching levels associated with the fastest 30% market crash in history.

This is truly incredible, and it tells us that just a handful of stocks are holding up the entire market. And this is during the greatest stock market bubble of all time… a bubble so massive that it makes the Tech Bubble look like a joke in terms of speculation.

The coming bust is going to be life-changing for many people. Most will lose much if not everything. But a small number of investors will generate literal fortunes.

If you’re interested in becoming one of them, you need to check out the signals that I rely on to tell me when a crash is about to hit.

I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.

https://www.zerohedge.com/news/2021-11-19/everything-bubble-about-burst

Update (Saturday 0715 ET): The reports turned out to be correct. Protests were seen in multiple cities, and a riot was declared in Portland, Oregon, hours after Kyle Rittenhouse’s acquittal.

Protests were observed in downtown Brooklyn, New York; Boston, Massachusetts; Chicago, Illinois; and Portland, Oregon. Focusing on Portland, a riot was declared at 9 p.m. local (or 2400 ET) after hundreds of demonstrators unleashed their liberal rage by smashing windows and hurling objects at police.

Police declare #riot in #Portland amid unrest over #Rittenhouse verdict#RittenhouseVerdict pic.twitter.com/zYyqbkurvK

— Ruptly (@Ruptly) November 20, 2021

After Kyle #Rittenhouse was found not guilty, #antifa in Portland organized an attempt to break inside the Justice Center to burn it down. They attacked police & also smashed up a passing driver's vehicle & targeted nearby buildings. Police declared a riot https://t.co/KhALOWp8AC pic.twitter.com/EA8nVZMPg1

— Andy Ngô 🏳️‍🌈 (@MrAndyNgo) November 20, 2021

#Antifa launched an attack on the Justice Center in downtown Portland, Ore. overnight following the #Rittenhouse verdict. They chanted about wanting to burn down the building, which houses inmates, the central police station & the sheriff's office. https://t.co/VNYxMtszuQ pic.twitter.com/sgtZEViQpo

— Andy Ngô 🏳️‍🌈 (@MrAndyNgo) November 20, 2021

URGENT! Police in Portland Oregon have just declared a riot.

Right now Rioters dressed in black are breaking windows of several government buildings. All police precincts are responding. 911 callers will experience long wait times due to this incident. pic.twitter.com/hmqITYNkGa

— ഡേവിന്ദർ ആനന്ദ് D K ANAND 🐅 (@DAVINDERANAND3) November 20, 2021

There are calls for more demonstrations today.

Following mass #antifa violence last night in Portland, Ore., the antifa cell in Los Angeles has announced a direct action for today at Pershing Square. #Rittenhouse pic.twitter.com/FBoZk5zPK7

— Andy Ngô 🏳️‍🌈 (@MrAndyNgo) November 20, 2021

Keep an eye out this afternoon or evening for additional protests in liberal-controlled metro areas.

Update (1558ET): Reports suggest multiple protests are planned across the U.S. after the jury decided to acquit Kyle Rittenhouse of all charges.

Twitter account "Raws Alerts" reports protests are being planned in Kenosha, Wisconsin, where the trial was held. National Guard troops are on standby for action if social unrest breaks out.

Comments outside the protest include one individual who said, "when it's a state-sanctioned murder, you get to riot."

“When it’s a state-sanctioned murder, you get to riot” Comments from some opposed to the Rittenhouse acquittal outside the courthouse #RittenhouseVerdict #Kenosha pic.twitter.com/0TMB3myfIV

— Brendan Gutenschwager (@BGOnTheScene) November 19, 2021

Activists with the Revolutionary Communists @therevcoms call on people outside the #Kenosha courthouse to join their cause for an “actual revolution” following the #Rittenhouse verdict. pic.twitter.com/fIG1pk46hx

— Ford Fischer (@FordFischer) November 19, 2021

Other protests are allegedly being planned for Chicago, New York City, Portland, Washington, D.C., Philadelphia, and Los Angeles.

As of 1550 ET, there are no reports of protests or riots in any mentioned cities. This is something readers should keep a close eye on into the evening and overnight.

Update (1500ET): When asked for his opinion on the verdict, President Biden said he "stands by" the jury's decision to acquit Rittenhouse, adding "the jury system works and we have to abide by it."

NOW - Biden "stands by" on the jury's decision in the Rittenhouse trial.pic.twitter.com/INJMiUMwzG

— Disclose.tv (@disclosetv) November 19, 2021

Biden issued a lengthier statement shortly after, calling for people to "express their views peacefully."

Statement by President Biden

While the verdict in Kenosha will leave many Americans feeling angry and concerned, myself included, we must acknowledge that the jury has spoken. I ran on a promise to bring Americans together, because I believe that what unites us is far greater than what divides us. I know that were not going to heal our country’s wounds overnight, but I remain steadfast in my commitment to do everything in my power to ensure that every American is treated equally, with fairness and dignity, under the law.

https://www.zerohedge.com/political/rittenhouse-acquitted-all-charges

>>15043397

I urge everyone to express their views peacefully, consistent with the rule of law. Violence and destruction of property have no place in our democracy. The White House and Federal authorities have been in contact with Governor Evers's office to prepare for any outcome in this case, and I have spoken with the Governor this afternoon and offered support and any assistance needed to ensure public safety.

In a press conference following the verdict, defense attorney Mark Richards said it was "the longest jury deliberation I've ever been a part of."

Defense attorney says length of Rittenhouse jury's deliberation instilled "doubt" prior to verdict.

"It was the longest jury deliberation I've ever been a part of." https://t.co/osaysWVXtG pic.twitter.com/6BO1cnAyMG

— ABC News (@ABC) November 19, 2021

He also commented on Biden's assertion that Rittenhouse was a white supremacist.

NOW - Rittenhouse defense attorney Mark Richards: "Biden said some things that I think are so incorrect and untrue." pic.twitter.com/DLmHeKmHlW

— Disclose.tv (@disclosetv) November 19, 2021

• • *

Kyle Rittenhouse has been acquitted on all charges related to last year's shooting in Kenosha, Wisconsin.

The 18-year-old was charged with five felonies; first-degree intentional homicide, first-degree reckless homicide, attempted first-degree intentional homicide, and two counts of first-degree recklessly endangering safety.

BREAKING: Kyle Rittenhouse found not guilty pic.twitter.com/dl6K37mjvd

— Daily Caller (@DailyCaller) November 19, 2021

Rittenhouse hugged his attorney after the verdict was read.

The jury reached their decision after four days of deliberations, which lasted longer than anyone - including Judge Bruce Schroeder, had expected. It came amid two mistrial requests from the defense over high-definition video evidence which was withheld - possibly unintentionally - by the prosecution. Rittenhouse's attorneys claimed that an inferior copy of a potentially crucial video could have affected their defense.

Prosecutors were visibly crestfallen after the verdict was read.

On Thursday, a juror asked Schroeder if she could take the jury instructions home, which was granted. The jury also asked to review the drone footage that was a 'linchpin' in the prosecution's case, as well as the best views of all the shootings compiled from six video clips.

Rittenhouse, now 18, shot and killed two men who were pursuing him and injured a third during the 2020 riots in Kenosha. The former police youth cadet faces life in prison if convicted of the most serious charge against him.

Via the Daily Mail

Awesome! Vehicles have been driving by in Kenosha honking in celebration of the verdict, with some stopping to react outside the courthouse.

pic.twitter.com/3vwD1P0NSa

— Election Wizard (@ElectionWiz) November 19, 2021

On Thursday, Judge Schroeder banned MSNBC from the courthouse after a freelance employee was pulled over after running a red light while following the jury bus. The network acknowledged that the man was an employee, but said he "never photographed or intended to photograph them."

Never forget what they did to him pic.twitter.com/4F1Djiq8ig

— Greg Price (@greg_price11) November 19, 2021

We can't wait for the lawsuits… including one against the Biden campaign.

$100MM. Over/under on Rittenhouse settlement for Biden suggesting he was a "white supremacist"https://t.co/pC3jptvlIr

— zerohedge (@zerohedge) November 19, 2021

SUE THEM ALL, KYLE.

EVERY LAST ONE. #KyleRittenhouse #NotGuilty pic.twitter.com/j7EUcfscUs

— Candace Owens (@RealCandaceO) November 19, 2021

And cue the riots…

This is a senior Democrat calling for riots because they don't like a verdict. https://t.co/yXEAnQhPkv

— Andrew Follett (@AndrewCFollett) November 19, 2021

GET KYLE OUT OF KENOSHA

— Jack Po-So-Bik (@JackPosobiec) November 19, 2021

Rotterdam "Transformed Into A War Zone" Amid New COVID Lockdown Protests

by Tyler Durden

Saturday, Nov 20, 2021 - 09:55 AM

On Friday, social unrest flared up across Europe as governments reinstated strict COVID measures such as restrictions for unvaccinated, partial, and full lockdowns amid a wave of new infections.

COVID-19 infections are surging in Germany, the Czech Republic, and Greece, and many of these countries are imposing strict public health measures to contain the spread. Austria has gone so far as to enact a nationwide lockdown beginning Monday.

Riots broke out in downtown Rotterdam during a demonstration against partial lockdowns Friday. Mayor Ahmed Aboutaleb told reporters it was "an orgy of violence." He said, "on several occasions, the police felt it necessary to draw their weapons to defend themselves" as rioters set fires, torched cars, threw rocks and other blunt objects at police.

"They shot at protesters, and people were injured," Aboutaleb said. He couldn't provide an injury report but said police fired warning shots.

Photos and videos from last night show absolute mayhem.

NOW - Violent protests against Covid-restrictions in #Rotterdam, Netherlands.pic.twitter.com/xCTyqiy609

— Disclose.tv (@disclosetv) November 19, 2021

Police cars were torched.

Just chaos.

Protests turned violent in the Netherlands as crowds in Rotterdam marched against government plans to make a 'coronavirus pass' mandatory for some indoor venues https://t.co/zqTADgZZiW pic.twitter.com/N3haRtyRJQ

— Reuters (@Reuters) November 20, 2021

Allegedly protesters were shot by police.

At least two people shot at anti mandate protest in Rotterdam pic.twitter.com/A2XXoZFWEE

— 𝔸𝕟𝕘𝕣𝕪𝕣𝕒𝕪𝟞𝟞 #HoldTheLine (@angryray66) November 19, 2021

More gunfire.

Protesters pounce on police in the streets of #Rotterdam. The tension is at its maximum. Shots are fired into the air. #rotterdamprotest pic.twitter.com/2ainffqQZs

— AUSTROHÚNGARO (@AUSTROHNGARO2) November 19, 2021

Rotterdam riots were some of the worst the Netherlands have seen since officials enforced similar public health measures last year.

Justice Minister Ferd Grapperhaus denounced the riots:

"The riots and extreme violence against police officers, riot police and firefighters last night in Rotterdam are disgusting to see.

"Protesting is a great right in our society, but what we saw last night is simply criminal behavior. It has nothing to do with demonstrating," Grapperhaus said.

The right-wing political party Leefbaar Rotterdam condemned the riots in a tweet:

"The center of our beautiful city has this evening transformed into a war zone," it said. "Rotterdam is a city where you can disagree with things that happen, but violence is never, never the solution."

Meanwhile, Austria has introduced the most extreme restrictions out of all 27 countries in the EU, announcing full lockdown will begin on Monday.

Dozens of protests are expected across Dutch cities and other countries on Saturday. As demonstrations begin, we will update throughout the day.

https://www.zerohedge.com/political/rotterdam-transformed-war-zone-amid-new-covid-lockdown-protests

Tesla Worker Alleges "Nightmarish" Conditions, "Rampant Sexual Harassment", At Company's Fremont Factory

Tyler Durden's Photo

by Tyler Durden

Saturday, Nov 20, 2021 - 11:00 AM

Weeks after losing a workplace racism lawsuit that resulted in a $137 million award against Tesla, the automaker is now facing allegations of "rampant sexual harassment" in the workplace and a new lawsuit from a worker at its Fremont factory.

38 year old Worker Jessica Barraza is claiming she faced "nightmarish" conditions working the night shift at Tesla, Bloomberg reported late this week. Her suit alleges that co-workers and supervisors made lewd comments and gestures to her and other women "multiple times a week".

She says when she complained to supervisors and human resources, they did nothing about it.

As a result of her trauma, she says she suffers from panic attacks and “is afraid to return to work knowing that her body could be violated at any time with no repercussions."

“She is on medication and in therapy, and she is not the same person she used to be," the suit says.

Tesla has used arbitration in the past to try and settle such incidents.

David A. Lowe, an attorney for Barraza, said: “Tesla has carved out the right to go to court on the claims that are important to them while prohibiting employees from doing the same.”

“It’s such an egregious and compelling situation that Jessica describes," Lowe said, calling it "so important on the merits".

Barraza isnt' the first woman to have complaints about working at Tesla. A black woman named Rebecca Spates, who joined the company in 2019, alleged she was discriminated against for her race, gender and age. She also claimed that a co-worker touched her buttocks.

31 complaints were filed with California’s Department of Fair Employment and Housing alleging discrimination at Tesla throughout 2020, Bloomberg reported.

https://www.zerohedge.com/markets/tesla-worker-alleges-nightmarish-conditions-rampant-sexual-harassment-companys-fremont

The Fed's Moral Hazard Monster Is About To Lay Waste To "Wealth"

by Tyler Durden

Saturday, Nov 20, 2021 - 11:30 AM

Authored by Charles Hugh Smith via OfTwoMinds blog,

If the Fed set out to destroy the financial system, they're very close to finishing the job.

If you set out to destroy markets and the financial system, your most important weapon is moral hazard, the disconnection of risk and consequence. You disconnect risk from consequence by rewarding those making the riskiest bets and bailing out gamblers whose bets went bad.

You reward those making the riskiest bets by pushing markets higher regardless of any other factors. Nothing matters except your support of ever higher markets.

This implicit guarantee that any bet on markets lofting higher will be a winning gamble rewards those making the riskiest bets. The punters who played small with cash made a few bucks, but the punters who borrowed heavily and then leveraged those bets to the hilt made a killing.

In other words, moral hazard incentivizes maximizing debt and leverage to increase the risk and size of bets because every bet is a can't-lose proposition. The hesitant, the cautious, the prudent, those who hedge their riskiest bets, are all left in the dust. Anyone who doesn't max out borrowing and leverage is a loser.

By pushing markets ever higher, you bail out every participant. To make up any losses, all the punters have to do is increase the size and risk of their next bet.

To make sure everyone is properly incentivized and assured, you bail out the biggest gamblers should they somehow lose. You do this by offering them unlimited lines of credit (so they can leverage up their next bet and and win back their losses), you eliminate transparency in market pricing to mask their losses (eliminate mark-to-market requirements, etc.) and you overlook fraud, racketeering, price-fixing, collusion and embezzlement because all these activities serve to increase risk-taking and delegitimize markets.

The biggest gamblers know they can literally do anything and get away with it, and so they do literally everything that undermines markets and trust: there's no limits on fraud, racketeering, price-fixing, collusion and embezzlement, those conjuring up the most creative frauds and scams are the most richly rewarded.

The Moral Hazard Monster will now completely destroy markets and the financial system, just as you intended. Every participant will continue pyramiding debt, leverage and risk because they know you'll keep markets lofting higher regardless of any other condition: they will follow "flows" (i.e., what other punters are buying at the moment) and ride those flows higher, fully confident that you will never ever let markets decline by more than signal-noise dips that offer punters a fresh opportunity to leverage up another bet on higher markets next week and next month.

Your plan is clever because the punters are all so focused on maximizing their own gains they don't notice that the debt, leverage and risk now dwarf everything else. Having guaranteed that the riskiest, most leveraged bets will be the biggest winners, debt and leverage have exploded higher. The entire financial system is now dependent on the riskiest, most leveraged bets continuing to pay out even as they dwarf the rest of the financial system.

Your plan depends on the mispricing of risk: by implicitly guaranteeing every punter betting on a higher market next week or month will be a winner, you've reduced apparent risk to near-zero. What's the risk if everyone knows markets will loft higher regardless? There is no risk, so forget about it; hedging risk just reduces your net profits.

But since risk isn't extinguished, it's only transferred, the question becomes: where did all the risk end up? Answer: in the financial system itself. All the risks piling up as trillions of dollars are leveraged into ever larger can't-lose bets have not evaporated, they've been transferred to the financial system. So when risk exceeds the carrying capacity of the system, it will be the system which implodes, not just punters' riskiest, most highly leveraged bets.

Here is a chart of household net worth over the past 70+ years. (Yes, it included nonprofit organizations, which make up a modest percentage of the total.) Note the three bubbles inflated by Federal Reserve policies: the dot-com bubble in 2000, the housing bubble in 2007 and now the Everything Bubble in 2021.

If net worth had tracked GDP growth since the peak of the dot-com bubble in 2000, it would be about $107 trillion–$53 trillion below current bubblicious levels. This can be understood as $53 trillion in phantom wealth generated by leveraging up the Federal Reserve's $8 trillion expansion of its balance sheet since 2008 seven-fold.

https://www.zerohedge.com/markets/feds-moral-hazard-monster-about-lay-waste-wealth

>>15043562

This highly leveraged phantom wealth will evaporate once the system can no longer contain all the risk that's been piled up by the Fed's Moral Hazard Monster.

Once $50+ trillion of phantom collateral evaporates, the entire pyramid of debt and leverage will collapse, destroying the entire financial system.

One broad measure of the leverage that's been piled up in the Fed's moral hazard free-for-all is net worth relative to disposable personal income which is the ultimate collateral for the financial system, as all debt service and consumption is paid out of income.

Note the vast expansion of leverage in each bubble. Leverage in the Everything Bubble has blown past every previous extreme.

If the Fed set out to destroy the financial system, they're very close to finishing the job. Their Moral Hazard Monster is about to lay waste to phantom collateral and everything that's been borrowed and leveraged against that phantom collateral. Thanks to the Fed's Moral Hazard Monster, debt, leverage and risk now far exceed what the system can support.

Predicting the bottom is difficult when the system collapses. Historically, a return to 400% of disposable personal income would be a reasonable guess. If disposable income craters, net worth will adjust accordingly.

RICCARDO BOSI:

"This stops when we want it to stop. The moment enough Australians say, 'that's it,' it's over. If you don't put the tools down, then this will continue until they've killed all of us, and that's what this is about. This is not about health; this is not about a disease, it's about destroying the Australian people. From today, tools down, make whatever excuse you need to: stress leave, holidays, long service, whatever. Close it down and just get yourself through to Christmas. Shut down the country, make it ungovernable up until Christmas and you'll be fine.

https://twitter.com/markmaycot/status/1462078522332262405?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1462078522332262405%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=http%3A%2F%2F

AUSTRALIA: LISTEN to Australia One Party Leader. Important message for all Aussies and rest of the world. Sharing this message could save many lives.

[FULL VIDEO: https://t.me/trumpintel/19764]