Graham Summers: Great Crash of 2011

All the red flags are in place. Buy lots of puts.

"The financial markets are literally standing on the ledge of a cliff looking down into the abyss. The fact weâ??ve had a coordinated Central Bank intervention in the last week should tell you just how desperate things are getting.

The one hope for the bulls is that the Fed will announce some massive new program at its September meeting which takes place tomorrow and Wednesday. I fully believe the Fed will disappoint in a big way as Bernanke and his loose money policies have become politically toxic: see the GOP debate in which all frontrunners united in their criticism of the Fed.

The market looks to be agreeing with me."