Federal Reserve policymakers are meeting in Jackson Hole Wyoming this week — and global investors couldn’t be more excited.
Judging from today’s market action, they’re expecting big things from the Fed at the end of the week — something; anything to save the U.S. economy and stock market.
Unfortunately, they’re likely to be bitterly disappointed: The grand announcement they’re waiting for may never come.
The simple truth is, there is no political support whatsoever for new Fed intervention in the economy! Inflation is running too hot.
Everyone and his sister knows that QE juices commodity prices — making it harder for everyday Americans to pay their bills. One major Republican presidential candidate has openly questioned the Fed’s whole reason for being, while another went so far as to call money-printing “treasonous”!
And even if Bernanke does try to print more money, it won’t matter for more than a few hours or days. Reason: We’ve already seen that Quantitative Easing doesn’t work!
The market has given up all its QE2 gains … and more. At the same time, the real economy is heading back into a double dip recession — DESPITE the hundreds of billions of dollars Washington has borrowed, spent, and printed!
Either way, Bernanke’s big speech on Friday will be a non-event. Any stock market gains we see in the meantime will be wiped out in the twinkling of an eye.
Dangerous Sleight of Hand
And while the entire world obsesses over what the Fed may or may not announce this coming Friday, the economic nightmare I’ve been warning about isn’t waiting.
Just this morning, we learned that the crisis that triggered this great financial calamity in the first place — the U.S. real estate collapse — is still intensifying.
In July, new home sales fell again — to a new five-month low.
Worse: The median price of a new home fell 6.3% between June and July.
Imagine; despite the trillions already spent to fight this crisis, new home prices are still plunging 6.3% in a single month!
Separately, an index of manufacturing activity in the Richmond Fed’s territory plunged to MINUS 10 in August. Not only did that miss economist forecasts by a country mile, it was also a fresh 26-month low!
No wonder U.S. financial stocks are getting their heads handed to them!
In fact, the banks are trading like it’s 2008 all over again. Goldman Sachs and AIG have fallen to within an eyelash of their recession lows. Bank of America is already there.
Do NOT be deceived: This great crisis is here now — and nothing the Fed says or does can stop it.
As Dr. Weiss says in our all-new video — America’s Financial Doomsday …
“An historic, world-changing event is about to end the American way of life as we know it.
“But while the vast majority of Americans will suffer, a select handful will use this crisis to build substantial wealth …”
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Just ahead — the event that will change your world forever: The monumental event that now threatens to trigger the ultimate financial doomsday — and why it will plunge vast numbers of U.S. families into the nightmare of poverty, homelessness and hunger …
The high cost of bad advice: Why most people who think they’re ready to survive this crisis have made the wrong preparations and could be even more vulnerable than those who haven’t prepared at all …
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Windfall profits available: How a handful of Americans will use this crisis to build enormous wealth — and how you can too!
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Best wishes,
Mike Larson
P.S. After you’ve seen America’s Financial Doomsday, be sure to jump over to my personal blog and tell us what you think. Each day, I’ll publish the best reviews — and yours could be one of them!