Dawn Bennett Writes Article, "The Bigger the Bubble..." Regarding the Recent Drop in Markets. Learn more here.

1. Regarding the Recent Drop in Markets
DAWN BENNETT WRITES ARTICLE,
"THE BIGGER THE BUBBLE..."

2. Last month, the markets tumbled in anticipation of the
FOMC meeting: the Dow dropped 582 points (about
3.3 percent) and the S&P 500 lost 3.9 percent, 79
points. This was the steepest decline for the S&P since
August 2015. Worldwide, five central banks have raised
interest rates since the financial crisis, and all of them
were forced to reverse that decision almost as quickly
as they made it. This could easily happen in the U.S. as
well, according to Dawn J Bennett, CEO and Founder
of Bennett Financial Services and Host of Financial
Myth Busting.
A DROP IN MARKETS

3. In 2011, when the Federal Reserve released its discount window
documents, it became clear that most of the funds from the U.S.
quantitative easing actually went to foreign banks located in the
European Union. When the European banking system hit an all-time low
in 2012, the Fed coordinated with the ECB to announce QE3 to aid the
European banking system.
LOOKING BACK

4. "Across the world, central banks work together to maintain stability in the
global financial system, but when things really start getting difficult, they start
looking out for their own interests, said Dawn Bennett. "This is when
competitive devaluation of currencies begins. I believe that the cooperative
relationship between the Fed and the ECB may be set to break down. The
Euro comprises 56 percent of the basket of currencies, against which the
dollar is valued, and Europe holds over $9 trillion in U.S. dollar denominated
debt, which is called the U.S. dollar carry trade, and the FOMC move to raise
interest rates could easily cause fault lines throughout that trade. Investors
need to keep an eye on ECB monetary policy in the next months, because
their actions carry significant impact to us in the United States."
ACCORDING TO DAWN J BENNETT

5. Dawn Bennett continued, "We really do
seem to be in an echo of the '07/'08 crisis,
and one that has the potential to be
exponentially worse than that event. In
2007, the Bear Stearns High Grade
Structured Credit Fund started to show
signs of trouble, which eventually led to an
emergency loan from the New York Fed
than ultimately failed to save the company.
Just as Bear Stearns froze redemptions on
its credit hedge fund in 2008, two big
hedge funds (Third Avenue and Stone Lion
Capital) have done the same in the last few
weeks. Add that news to the increased
volatility resulting from commodity and
energy selloffs, and we should be seeing a
big red flag for risk assets."

6. Read more from Dawn J Bennett here: http://www.releasewire.com/press-
releases/dawn-bennett-writes-article-the-bigger-the-bubble-regarding-the-
recent-drop-in-markets-650714.htm
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