The Fed and ECB's Fatal Mistakes Will Cost Us Dearly

The great currency collapse is now charging full steam ahead.  Europe is now finding itself in the unappealing position of having wasted hundreds of billions of Euros on bailing out a minor player (Greece) only to now face debt Crises from two countries (Spain and Italy) that it can’t possibly bail out.

This is why the entire Greek bailout concept was so terrible to begin with. If you’re going to be facing a sovereign debt crisis and need to insure stability in the region, why bother shooting all your ammo at a minor player? The EU would have been much better off kicking Greece out (not to mention the Greeks want out anyway), and kept some dry powder to confront the REAL problems (Spain and Italy).

The same goes for the Fed in the US. Bernanke and pals spent some $900 billion between QE lite and QE 2 and accomplished nothing. Indeed, they didn’t even let the market operate without QE for four months before they started teasing that more was coming.

As a result of this, they’ve now shown that QE really doesn’t accomplish anything (the economy took a nose dive in a BIG way in 1Q11). And they’ve created a market that is completely dependent on more QE NOT to Crash.

Truthfully, if the Fed wanted to keep things going as long as possible, it would have let more time pass between QE lite and QE 2. That way the markets could have traded in a range with just enough juice to stay afloat.

Instead, the Fed pumped its brains out, pushed the S&P 500 up to 1,350… and now has no ammunition left what-so-ever (if the Fed announces QE 3 it’s GAME OVER as it will prove QE is a complete and utter failure).

Which comes back to my primary point over the last year: that at some point the markets will no longer respond to any Fed intervention, because it will be clear that the Fed can’t solve the problems facing the financial system.

When this happens, the result will make the 2008 Crisis look like a joke. After all, the only thing that kept the markets afloat then was investors’ faith in the Fed. Take that faith away… and you’ve got yourself a REAL Crisis.

On that note, if you’ve yet to prepare your portfolio for Round Two of the Financial Crisis, you can find actionable investment ideas that will not only protect your portfolio, but help you produce outsized profits in my FREE report, The Financial Crisis “Round Two” Survival Kit.

This report is over 17 pages long and includes detailed analysis of why the First Round of the Financial Crisis happened, why the next round (Round Two) will be even worse than 2008, and which investments can produce triple digit winners when the market crumbles.

This report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.

Good Investing!

Graham Summers

PS. We also feature two other reports, one outlining how you can purchase Gold at just $350 per ounce and another featuring two investment ideas that will skyrocket as the world’s paper currencies collapse in an Inflationary Armageddon.

These other two reports How to Buy Gold at $350 and The Inflationary Armageddon are also available at the OUR FREE REPORTS tab on http://www.gainspainscapital.com.

Average: Your rating: None Average: 1 (2 votes)

View the original article here