It is based on and how we expect that it will be the straw that breaks the back of Europe's bailouts and pushes their troubles over to America.
In this video, we wanted to give you a handle for the matter.
Read just past the second headline and you'll see the utter peculiarity: "NEW YORK—U.S. stocks rallied as signs of a worsening U.S. labor market and European debt picture bolstered investors' hopes that central bankers will again come to the rescue."
What this is saying is that we have a stock martket that is addicted to crack. The crack is Federal Stimulus. The Federal Reserve Bank printing more money and giving to the banks, who do not lend it, they simply put it into riskier investments likes stock or commodities, thereby causing further bubbles in those markets.
What does it say about our stock market when bad news drives it UP? Is that the new normal? Is this what you want to plan your future prosperity upon?
And each stimulus has had less and less effect, as do drugs. And eventually there is a price to pay when the addict is told "quit or die from the drugs".
My suggestion is this: If you are savvy investor, and you really know when to get in and when to get out, more power to ya. If you are someone who gets the feeling that Wall Street plays by it's own rules, then you need to step aside. Something awfully weird is going on.
See where Mom and Pop went wrong in the video above.