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Gregory Mannarino's  Instablog

Gregory Mannarino
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I started my financial career working for the securities and trading arm of the now defunct Bear Stearns before thedot-com bubble. I am an active trader of the capital markets. I have published several books pertaining to finance, global economics, and equity trading; My most recent book is... More
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  • The Merger Of Politics And Central Banks Assures Their Survival. What About Yours?

    President Obama with Federal Reserve Chairwoman Janet Yellen.

    *Without allowing the free market to determine fair market value what gets created are unstable distortions which at one point have to balance out.

    Today we have a lethal combination of politics morphing with central banks who refuse to allow free market forces to do their sole job, and that is to determine fair value for every single asset class across the board. In this fake environment where there are zero price discovery mechanisms, massive and very dangerous capital misallocations are occurring however, the day or reckoning is coming.

    In the crash of 2008 we all got to witness what occurs when politics and central banks conspire against a free market, we got a massive housing/credit bubble which threatened to melt down the entire global financial system. Further, the tax payers who watched their investments evaporate were forced by politicians to bail out the banks.

    What is being created right now with this continued and expanding merger between politics and world central banks, is a much more dire situation, and we are already witnessing the ramifications of this-War.

    In this manufactured environment of exaggerated warping of the entire global financial system into something which has no resemblance of a free market, a complete collapse has already been assured.

    The world central banks, none more so than the US Federal Reserve have "run out of bullets." Their only recourse is to continue to slash interest rates, even going negative, effectively turning the entire financial system upside down. The world central banks are having to resort to-IN THEIR OWN WORDS "extraordinary measures" to keep the system propped up.

    The Federal Reserve has gotten so desperate at this point that they are requiring the banks to buy debt, (this has been going on since at least 2012) directly exposing depositors to an asset which can never be paid back.

    The bottom line: what we have now is a worldwide conspiracy between the central banks and our policymakers who are determined to keep the system managed in their interest at all costs. But who will lose in the end because of this merger? We will as a collective people.

    The conflict of interest contained in this merger between politics and the central banks has assured their survival in the worst of times, but what about yours?

    Feb 25 1:15 PM | Link | 5 Comments
  • Federal Reserve Remains In Emergency Mode And Greece Confirms Debt Cave In.

    Pictured above, Janet Yellen Federal Reserve Chairwoman.

    Pictured below, Yanis Varoufakis Finance Minister of Greece.

    The title of this article really says it all and resets the stage for world central banks management and dominance over the financial world.

    Today in statements before Congress the Federal Reserve Chairwoman Janet Yellen confirmed to the world that the United States economy remains is such a poor state of "recovery" that any proposed rate hike is off the table, at least for the foreseeable future. On this news the stock markets went into rally mode.

    This move in the market was further fueled by news that the new Greek government has bowed to the demands made against the people of Greece.

    What all this means is simple: the world central banks will continue to create vast distortions across the spectrum of asset classes and as for Greece, there is no solution for the insurmountable, uncorrectable debt issue on a global scale. As Greece represents a microcosm of what is a worldwide problem-debt.

    Feb 24 1:52 PM | Link | 4 Comments
  • A Possible Warning From The Bond Market.

    Gregory Mannarino

    We may be about to witness a hard reversal in this market.

    If you are familiar with my work, then you also know I explain that if want to know where the stock market is headed, look at the bond market first.

    Have a look at the chart below of (NYSEARCA:BND).

    (click to enlarge)

    If you notice the price action (circled at the right end of the black line), it appears to be bottoming. Further, observe how volume is picking up as well. Both of these are signals of a possible strong reversal and cash about to move into bonds. This means we may be about to see drop in the stock market.

    What this says to me as a trader is we should be very cautious on the long end of this market in the short run, and "betting" that this market may be about to fall.

    Happy trading!

    Feb 23 3:33 PM | Link | 1 Comment
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