It's Official: The Coronavirus Has Burst the Everything Bubble

The Fed Is Now in Very Serious Trouble March 16, 2020 UNSUBSCRIBE | ARCHIVES In the Markets: What should you do about the 'Corona Crash'? I fear most Americans were blindsided by the recent stock market crash... While many will run scared, what you're about to see could be the biggest opportunity of your lifetime. Click here now to see it. And please do NOT share this video with anyone... if it goes viral, there could be consequences. It's Official: The Coronavirus Has Burst the Everything Bubble Dear Money & Crisis Reader, The Fed is now in very serious trouble.  Over the weekend, the Fed announced another emergency rate cut, this time of 1%. This brings rates back down to zero. The Fed also announced a $700 billion quantitative easing (QE) program, including $200 billion of mortgage backed securities and $500 billion of Treasuries. And the futures market collapsed… LIMIT DOWN. As I write this, the stock market will be opening down some 5%. Put another way, the Fed has gone truly NUCLEAR with monetary policy… and the market is STILL imploding. In the last two weeks, the Fed has: Cut rates from 1.25% to ZERO. Launched a $1.5 TRILLION repo program. Launched a $700 billion QE program. And NONE of these items has stopped the market collapse. So, what is going on?!?! The Fed is Facing the Perfect Storm of Crises The Fed faces: An economic recession (possibly a depression) triggered by a pandemic. A corporate debt crisis with some $4-$5 trillion in debt at risk. Regarding #1, the coronavirus pandemic has resulted in the global economy stopping. The latest numbers out of China show DEPRESSION-like collapses in economic activity. The U.S. is heading there now. Restaurant traffic is down some 30%+ in the last week (60% in some markets). Events are being canceled. And people are staying home rather than going out and spending money. The Fed can do NOTHING to stop this. No amount of rate cuts of stimulus from the Fed will make people want to go out and spend money if the country is on lockdown/facing a health crisis triggered by a pandemic. This in turn is triggering #2: a corporate debt crisis with some $4-$5 trillion in debt at risk. The ONLY Marijuana Stock You'll Ever Need… Shocking news out of the marijuana industry… and Wall Street Insiders are going crazy. A massive 1.4 million-square-foot super-greenhouse is coming online… And could send a little-known marijuana stock soaring! Business Insider said… "Bottom line: What Netflix is to movies and TV series, [this company] could be to pot. But this could even be better…" But you've got to hurry… everything goes live just weeks from now. >>Click here for the details<< Heading Towards a Corporate Debt Crisis Since 2008, U.S. corporations have issued a truly INSANE amount of debt, often times using this debt to buy back their own stock. Consider that it took 50 years for the U.S. corporate bond market to hit $4 trillion. It has more than DOUBLED that to $10 trillion since 2008 alone. The economic impact of the coronavirus has brought this market under systemic duress. With corporate sales imploding, companies will suddenly have much less money to use to make debt payments. As you can see in the chart below, the bull market in junk bonds is OVER. If we take out that lower red line, we're entering a systemic crisis for corporate debt. This is a huge deal. And frankly, the Fed can't do anything about it. The corporate debt market is a $10 trillion bubble, of which $1.5 trillion is junk (think subprime) and another $4 trillion is just one step above this (probably junk as well). And unlike mortgages or Treasuries, the Fed CANNOT buy this stuff. Not unless Congress changes the Federal Reserve act. Why does this matter? Because corporate debt leads stocks. The stock market bounced at 2,500. Credit tells us stocks will be heading to 2,300 if not lower. In the simplest of terms, the next crisis is here. The coronavirus has burst the Everything Bubble. And we're heading into another 2008 type meltdown, or possibly something worse.  Please feel free to send in any questions you may have about this to Feedback@PhoenixPress.com. I will do my best to answer these questions in future correspondence. Best Regards, Graham Summers Editor, Money & Crisis Even if You Don't Read Dirty Magazines… Here's one time you should've… In 1981, a dirty magazine published an article that had the potential to make its readers filthy rich. They interviewed the author of Microcosm in 1990, Life After Television in 1994, and Telecosm in 2002. Each one of these books issued predictions of new tech that took the world by storm and would gotten you ahead of the millions of people investing in them. Today this same author has a new book and wrote: "The next paradigm could impact over $16.8 trillion in the world economy. And you could get very rich as it does." Click here to learn how to get a copy of this book showing you the companies that could make you fortunes. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, click here to unsubscribe. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. Phoenix Press, a division of Laissez Faire Books, LLC. 808 Saint Paul Street, Baltimore MD 21202. Nothing in this e-mail should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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