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Ares
4th June 2012, 05:37 AM
On June 1, market rumors were coming out of a hedge fund luncheon stating that Pimco, JP Morgan, and other financial companies were cancelling summer vacations for employees so they could prepare for a major 'Lehman type' economic crash projected for the coming months. These rumors came on a day when the markets nearly came to capitulation, with the DOW falling more than 274 points, and gold soaring over $63 as traders across the board fled stocks and moved into safer investments.

Todd Harrison tweet: Hearing (not confirmed) @PIMCO asked employees to cancel vacations to have "all hands on deck" for a Lehman-type tail event. Confirm?

Todd M. Schoenberger tweet: @todd_harrison @pimco I heard the same thing, but I also heard the same for "some" at JPM. Heard it today at a hedge fund luncheon.

Todd Harrison is the CEO of the award winning internet media company Minyanville, while Todd Shoenberger is a managing principal at the Blackbay Group, and an adjunct professor of Finance at Cecil College.

Pimco and JP Morgan Chase are not the only financial institutions worried about a potential repeat of the 2008 credit crisis. On May 31, one day before Pinco rumors began to spread around the markets, World Bank President Robert Zoellick issued the same warnings of a potential 'rerun of the great panic of 2008'.

The head of the World Bank yesterday warned that financial markets face a rerun of the Great Panic of 2008.

On the bleakest day for the global economy this year, Robert Zoellick said crisis-torn Europe was heading for the ‘danger zone’.

Mr Zoellick, who stands down at the end of the month after five years in charge of the watchdog, said it was ‘far from clear that eurozone leaders have steeled themselves’ for the looming catastrophe amid fears of a Greek exit from the single currency and meltdown in Spain. - The Daily Mail

Market indicators over the past two months in Europe have been signalling an economic slowdown, with the potential for total economic collpase increasing over the past few weeks. The US markets have dropped more than 1000 points since their highs in March, and on Friday, all gains for the year were completely wiped out after the shocking jobs report was issued.

Additionally, a new study from a former hedge fund manager on May 31st outlined that for the first time in the economic cycle, economies did not recover all their losses from prior recessions before going into a new one. The conclusions point to the need for a complete reset of the financial systems, as capitalism and central bank intervention (money printing) no longer have any real effect on economic growth.

When one company decides to cancel vacations, or impose additional workloads on their employees due to projected events, it is not considered relative news. However, when several institutions, analysts, and even the head of the World Bank acknowledge a coming crisis, then everyone needs to come to the realization that something big is on the horizon that will have an effect on both Wall Street and Main Street. The rumors out on June 1 regarding Pimco and JP Morgan should be a wake up call to all investors that Friday's market drops across the board are just the beginning of what could be a repeat of 2008, only much worse this time around.


http://www.examiner.com/article/market-rumor-pimco-and-jp-morgan-halt-vacations-to-prepare-for-economic-crash

osoab
4th June 2012, 05:41 AM
There was a thread on this over at tickerforum

PIMCO PTO CANCELLED FOR ALL HANDS ON DECK LEHMAN TYPE EVENT (http://tickerforum.org/akcs-www?post=206747)

chad
4th June 2012, 06:26 AM
sweet. good news for once.

gunDriller
4th June 2012, 06:42 AM
nothing inspires central bankers to print, more than fear.

except perhaps - greed.

Libertytree
4th June 2012, 07:09 AM
Found on Yahoo, go figure. http://news.yahoo.com/former-hedge-funder-fearful-forecast-looking-biggest-economic-190840194--finance.html

Oh, and I don't know what's up with the slide show pics but the captions kind of give ya picture (pardon pun)


Former Hedge Funder’s Fearful Forecast: We‘re Looking at ’The Biggest Economic Shock the World Has Ever Seen’ & There’s Nothing We Can Do to Stop It



Former co-manager of the GLG Global Macro Fund (http://www.globalmacroinvestor.com/About.asp) Raoul Pal has joined the growing chorus of economists who believe the global economy is headed in the absolute wrong direction.

What does the Goldman Sachs alumnus see on the horizon?
Mr. Pal, who writes for The Global Macro Investor (http://www.globalmacroinvestor.com/About.asp), a research publication intended only for larger institutions, hedge funds, and family offices, believes that a global banking collapse and massive defaults will bring about “the biggest economic shock the world has ever seen” — and there’s nothing we can do to stop it.
Well, that’s pretty dire. Does he have anything to back up his claims?
We’re glad you asked. Without further explanation, here is “The End Game,” Pal’s impressively comprehensive (and grim) presentation on the current state of the global economy:
Photo 1 of 30

The End Game


Photo 2 of 30

The world has no engine of growth


Photo 3 of 30

First recession since 1930's


Photo 4 of 30

Per Capita Durable Goods Orders



Photo 5 of 30

Percentage of U.S. population employed


Photo 6 of 30

U.K. industrial production


Photo 7 of 30

EU Industrial output


Photo 8 of 30

U.S. GDP since 1802


Photo 9 of 30

Weakest foundations to enter a recession on


Photo 10 of 30

Debt


Photo 11 of 30

Total debt to GDP ratio by country


Photo 12 of 30

Series of defaults


Photo 13 of 30

All fall down


Photo 14 of 30

No. of defaults by crisis period


Photo 15 of 30

--


Photo 16 of 30

Defaults across the board


Photo 17 of 30

End of world?


Photo 18 of 30

The end of Europe?


Photo 19 of 30

The end of finance?


Photo 20 of 30

A collapse in world trade?


Photo 21 of 30

Eye of the storm


Photo 22 of 30

Connect the dots


Photo 23 of 30

Weak foundations


Photo 24 of 30

The big reset


Photo 25 of 30

Biggest econ shock the world has ever seen


Photo 26 of 30

Nationalization of banks


Photo 27 of 30

The whole bond market will be dead


Photo 28 of 30

Closure of the banking system


Photo 29 of 30

Around 6 months left


Photo 30 of 30

Going back in time



(H/T: BI (http://www.businessinsider.com/raoul-pal-the-end-game-2012-6?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+businessinsider+%28Business+Ins ider%29&utm_content=Netvibes))
Author’s note: The final slide in the presentation isn‘t saying that we’ll revert to the economic activity of 3000 years ago. Rather, it is a reference to trade links between nations along the Indian Ocean that are thousands of years old. Pal believes this is where the opportunity is. Why? Because they have ”low debts, high savings and a young population,” as Business Insider (http://www.businessinsider.com/raoul-pal-the-end-game-2012-6?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+businessinsider+%28Business+Ins ider%29&utm_content=Netvibes) points out.

osoab
4th June 2012, 07:30 AM
To add to LT's post. ZH had something from the guy last week.

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
"The End Game: 2012 And 2013 Will Usher In The End" - The Scariest Presentation Ever? (http://www.zerohedge.com/news/big-reset-2012-and-2013-will-usher-end-scariest-presentation-ever)

If Raoul Pal was some doomsday spouting windbag, writing in all caps, arbitrarily pasting together disparate charts to create 200 page slideshows, it would be easy to ignore him. He isn't. The founder of Global Macro Investor (http://www.globalmacroinvestor.com/About.asp)"previously co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe... Raoul Pal retired from managing client money in 2004 at the age of 36 and now lives on the Valencian coast of Spain, from where he writes." It is his writing we are concerned about, and specifically his latest presentation, which is, for lack of a better word, the most disturbing and scary forecast of the future of the world we have ever seen....

And we see a lot of those.

Neuro
4th June 2012, 09:39 AM
That Raul Pal presentation was uplifting!

vacuum
4th June 2012, 10:39 AM
Wow...we've got some serious doom coming. Timeline?



Around 6 months left

Carl
4th June 2012, 10:58 AM
You know what's so funny about all of this?

All of their assumed monetary wealth is based upon the continuing good credit of others.

Awoke
4th June 2012, 11:12 AM
You know what's so funny about all of this?

All of their assumed monetary wealth is based upon the continuing good credit of others.

Yes, to some degree, however they have set up emergency netting via insurance scams. Some of these mortgages that got forclosed on for example, the banks made more money because the loans were insured, and they got to re-sell the properties a second time, plus keep all the payments that people had made up until they went broke.

They stand to make more money if you DON'T pay your mortgage, if I remember correctly. (Creature from Jekyll Island)

Carl
4th June 2012, 11:59 AM
It's all credit, promises to pay based upon promises to pay based upon promises to pay to 100's of trillions in derivatives, and not a penny to pay amongst them.

JDRock
4th June 2012, 12:04 PM
buy on rumor,sell on news...

mick silver
4th June 2012, 01:08 PM
time to stock up ... who said they alway tell what there about to do .

Uncle Salty
4th June 2012, 07:32 PM
It's all credit, promises to pay based upon promises to pay based upon promises to pay to 100's of trillions in derivatives, and not a penny to pay amongst them.

And the .gov has promised to pay them. That is why hyperinflation is the only way out.

Carl
4th June 2012, 07:44 PM
And the .gov has promised to pay them. That is why hyperinflation is the only way out. The government promised them nothing except what its credit can cover.

osoab
5th June 2012, 03:27 AM
The government promised them nothing except what its credit can cover.


They make promises all the time that cannot be kept.

Neuro
5th June 2012, 08:55 AM
They make promises all the time that cannot be kept.
Oh they'll keep them alright...

Alan Greenspan (http://20smoney.com/profiles/who-is-alan-greenspan/) speaking before a Senate committee in 2005 said the following:
We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.