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An Expert That Correctly Called The Last Two Stock Market Crashes Is Now Predicting Another One

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Hussman ChartWhat I am about to share with you is quite stunning.  A well-respected financial expert that correctly predicted the last two stock market crashes is now warning that we are right on the verge of the next one.  John Hussman is a former professor of economics and international finance at the University of Michigan, and the information in his latest weekly market comment is staggering.  Since 1970, there have only been a handful of times when a combination of market signals that Hussman uses have indicated that a major market peak has been reached.  In 1972, 2000 and 2007 each of those peaks was followed by a dramatic stock market crash.  Now, for the first time since the last financial crisis, all four of those signals appeared once again during the week of July 17th.  If Hussman’s analysis is correct, this could very well mean that the next great stock market crash in the United States is imminent.

It was an excellent article by Jim Quinn of the Burning Platform that first alerted me to Hussman’s latest warning.  If you don’t follow Quinn’s work already, you should, because it is excellent.

When someone is repeatedly correct about the financial markets, we should all start paying attention.  Back in late 2007, Hussman warned us about what was coming in 2008, but most people did not listen.

Now he is sounding the alarm again.  According to Hussman, when there is a confluence of four key market indicators, that tells us that the market has peaked and is in danger of crashing.  The following comes from Newsmax

He cited the metric among the indicators that foreshadowed declines after peaks in 1972, 2000 and 2007:

*Less than 27 percent of investment advisers polled by Investors Intelligence who say they are bearish.

*Valuations measured by the Shiller price-to-earnings ratio are greater than 18 times.

*Less than 60 percent of S&P 500 stocks above their 200-day moving averages.

*Record high on a weekly closing basis.

The most recent warning was the week ended July 17, 2015,” Hussman said. “It’s often said that they don’t ring a bell at the top, and that’s true in many cycles. But it’s interesting that the same ‘ding’ has been heard at the most extreme peaks among them.”

It is quite rare for the market to set a new record high on a weekly closing basis and have more than 40 percent of stocks below their 200-day moving averages at the same time.  That is why a confluence of all these factors is fairly uncommon.  Hussman elaborated on this in his recent report

The remaining signals (record high on a weekly closing basis, fewer than 27% bears, Shiller P/E greater than 18, fewer than 60% of S&P 500 stocks above their 200-day average), are shown below. What’s interesting about these warnings is how closely they identified the precise market peak of each cycle. Internal divergences have to be fairly extensive for the S&P 500 to register a fresh overvalued, overbullish new high with more than 40% of its component stocks already falling – it’s evidently a rare indication of a last hurrah. The 1972 warning occurred on November 17, 1972, only 7 weeks and less than 4% from the final high before the market lost half its value. The 2000 warning occurred the week of March 24, 2000, marking the exact weekly high of that bull run. The 2007 instance spanned two consecutive weekly closing highs: October 5 and October 12. The final daily high of the S&P 500 was October 9 – right in between. The most recent warning was the week ended July 17, 2015.

The following is the chart that immediately followed the paragraph in his report that you just read…

Hussman Chart

When I first took a look at that chart I could hardly believe it.

It appears that Hussman’s signals are able to indicate major stock market crashes with stunning precision.

And considering the fact that we just hit a new “ding” for the first time since the last financial crisis, what Hussman is saying is more than just a little bit ominous.

According to Hussman this is not just a recent phenomenon either.  Even though advisory sentiment figures were not available back in 1929, he believes that his indicators would have given a signal that a market crash was imminent in August of that year as well

Though advisory sentiment figures aren’t available prior to the mid-1960’s, imputed data suggest that additional instances likely include the two consecutive weeks of August 19, 1929 and August 26, 1929. We can infer unfavorable market internals in that instance because we know that cumulative NYSE breadth was declining for months before the 1929 high. The week of the exact market peak would also be included except that stocks closed down that week after registering a final high on September 3, 1929. Another likely instance, based on imputed sentiment data, is the week of November 10, 1961, which was immediately followed by a market swoon into June 1962.

Of course the past is the past, and what has happened in the past will not necessarily happen in the future.

So is Hussman wrong this time?  With all of the other things that are happening in the financial world right now, I certainly would not bet against him.

Other financial professionals are concerned that a market crash could be imminent as well.  The following comes from a piece authored by Andrew Adams

More than 13% of stocks on the New York Stock Exchange are at 52-week lows, which is about 6 standard deviations above the average over the last three years (1.62%) and an extreme only seen one other time during said period (last October when the S&P 500 was percentage points away from a 10% correction).

This dichotomy has created what I believe to be the biggest question about the stock market right now – have we already experienced a stealth correction in the majority of stocks that will soon come to an end or will the market leaders finally succumb to the weight of the laggards and join in on the sell-off? The answer to this could end up being worth at least $2.2 trillion, which is how much money would essentially be wiped out of the stock market if we finally get the much-discussed 10% correction in the overall market (the total U.S. stock market capitalization was $22.5 trillion as of June 30, according to the Center for Research in Security Prices).

Sometimes, a picture is worth more than a thousand words.  I could share many more quotes from the “experts” about why they are concerned about a potential stock market collapse, but instead I want to share with you a “bonus chart” that Zero Hedge posted on Tuesday

Bonus Chart - Zero Hedge

Do you understand what that is saying?

In 2007 and 2008, junk bonds started crashing well before stocks did.

Now, we are witnessing a similar divergence.  If a similar pattern holds up this time, stocks have a long, long way to fall.

Like Hussman and so many others, I believe that a stock market crash and a new financial crisis are imminent.

The month of August is usually a slow month in the financial world, so hopefully we can get through it without too much chaos.  But once we roll into the months of September and October we will officially be in “the danger zone”.

Keep an eye on China, keep an eye on Europe, and keep listening for serious trouble at “too big to fail” banks all over the planet.

The next several months are going to be extremely significant, and we all need to be getting ready while we still can.

  • Alwaystomorrow

    The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015

    Published 6/25/2015

    157 days until 12/31/2015.

    For fun, lets do a count down every day until the end of 2015 and see just what happens.

    • Annette Durnal Burnett

      In a strange way I feel sorry for you Always.

      • OzSurvivalGuy

        I felt sorry for him yesterday but not today. He said he was sorry and now he’s back being a real nuisance. Definitely a troll.

        • Annette Durnal Burnett

          Oz you are very cute. Call me later when you are alone.

          • OzSurvivalGuy

            Yet another troll. Get off Michael’s site and stop being a nuisance.

          • Drowning in Debt

            It is the same idiot.

          • OzSurvivalGuy

            Yeah this place is full of idiots. I came here to read Michael’s fantastic posts and am constantly faced by stupid adult trolls who sit in their parents’ basements all day being keyboard commandoes. My advice to them is grow up! They are part of the reason why this world is such a mess that it is in. Get a job like me, become a survival instructor, put up a website, help others get prepared.

    • Drowning in Debt

      Very strange behavior.

      • OzSurvivalGuy

        Exactly

      • Drowning in Debt

        Your name can be hacked just like mine was. It sucks when that happens.

    • OzSurvivalGuy

      You just told us yesterday you are sorry and will not post this annoying message everyday! Tell me what happened to that promise?

      • Alwaystomorrow

        Go back and read yesterdays comments again.

        • OzSurvivalGuy

          What do you mean?You’re either sorry or you’re not.

          • Guest

            All, why are you giving Alwaystomorrow such a hard time. I don’t understand it. What is the big deal with counting down. I personally believe we are going to see a financial meltdown in September. Alwaystomorrow may believe otherwise. Disagreeing is healthy, why the attacks and the name calling. This is a good site, and people should post what they think. Michael himself does not even mind Alwaystomorrow tracking the days. Relax on the harsh words and aggressive behavior.

          • Alwaystomorrow

            What no one seems to get is that almost none of the posts under my name I am doing. Someone is using my Alwaystomorrow name and creating problems.

            Probably someone who is against the count down.

            I can not stop it. I have done all that I can.

            If no one understands then so be it.
            I will continue the countdown no matter who uses mu screen name.

        • OzSurvivalGuy

          You’re a troll. I have no doubts about that. If you want to lift that self esteem of yours go setup your own WordPress or Blogspot blog and that can be your soapbox. I saw what you did yesterday messing around with the Disqus system and being an imposter.

          • OzSurvivalGuy

            I feel that I need to apologize to all the fellow bloggers on this site
            and especially to Michael. I have been annoying . You see, I have never had a girlfriend and I continue to
            live with my parents. You think you have it bad?! I’m 97 now living at
            home in my folks basement. I’ve never had any true friends or
            recognition. I’m sorry, please
            I’m asking you to forgive me.

            Again it sucks when someone pretends to be someone they are not like they did to me.

          • OzSurvivalGuy

            Mate stop using my Disqus account and imposing as me. That is a criminal offence. As I said if you’re sorry then you should mean it!

          • GayPeopleLove

            If you can not figure out that when you make a comment all you have to do is sign in as a guest and type in any old name you want ( like OzSurvivalGuy
            ) without ever “Using my Disqus account” how are you ever going to make it through a collapse.

            There will be no collapse, lucky for you.

          • OzSurvivalGuy

            Yeah I know that dude. What makes you think I’m not going to make it through a collapse?! I don’t care one bit about trolls and people who ruin places like this website because they’re selfish. If you knew who you are dealing with then you wouldn’t say such things. I don’t tolerate idiots like AlwaysTommorrow – he needs to learn a lesson that’s why I come down hard. I deal with enough idiots as part of my job. He’s a grown up 47 yo adult so he should take responsibility for his own actions instead of acting like a kid.

          • Alwaystomorrow

            What no one seems to get is that almost none of the posts under my
            name I am doing. Someone is using my Alwaystomorrow name and creating
            problems.

            Probably someone who is against the count down.

            I can not stop it. I have done all that I can.

            If no one understands then so be it.
            I will continue the countdown no matter who uses mu screen name

            Sorry for the problems..

          • OzSurvivalGuy

            Why are you doing it to me then? I never imposted your account yesterday. I guess i’m just a random target of your childish stupidity.

      • OzSurvivalGuy

        Your name can be hacked just like mine was.

        • OzSurvivalGuy

          Stop acting like an idiot AlwaysTommorrow. Playing around and being an imposter is really stupid.

    • OzSurvivalGuy

      Yes Michael has released a RED ALERT. And you AlwaysTommorow will suffer like the rest of the sheeple population by not heading this warning. Now get off the computer you keyboard commando and get prepping!

    • Drowning in Debt

      Don’t feed this troll.

      • OzSurvivalGuy

        Good idea mate.

      • alwaystomorrow

        We don’t know who you are…….

    • victor

      Do You believe some thing will happen in it’s time that God has allowed according to His time clock? Or is this a joke to You? Just want to know where You are coming from, or your perspective.
      I believe some thing will happen, and it will just start to gain momentum from there.
      These things must happen, because they are written in the Word of the Lord. God is not a man, that He should Lie.
      I believe His truth, and I hope You do as well.
      God Bless

      • OzSurvivalGuy

        Amen bro!

      • gary hillerich

        spot on Victor..
        the fear of the Lord and the father
        IS the beginning of all truth & wisdom..there are no lies in Christ or the father..only in man & Satan,the father of lies..
        Jesus IS the way
        Jesus IS the light
        Jesus IS THE TRUTH!
        no one gets to the father except through Jesus Christ..
        repent & be born again.. Christ tells us God promises those that repent & live life on earth by & through his words, EVERLASTING LIFE!
        think about that for a minute..forever & ever & ever w/o end! it really does blow your mind to try to comprehend that incredible gift that can be yours..that can be all of ours!
        ,& a universe so immense it’s in- calculable because it never ends!
        simply inconceivable to a mortal earthly mind..
        we need but two simple weapons to fight Satan & his scum ilk,, the 2 perfect weapons that those that live in the dark shadows,behind the OZ curtain simply can not tolerate at any level..
        THE TRUTH AND THE LIGHT!..

    • alwaystomorrow

      Who are you?

    • durango

      I thought you told us a couple of days ago that you were going to f$ck off?

  • Drowning in Debt

    I was listening to a radio show today. They had a combination of celebrity trivia, government trivia, mathematics, and current events.
    I listened to 16 questions. It was disheartening yet comedic hearing the answers. The elites know they can get away with eviscerating the middle class. That is because America is dumbed down.
    The listeners aced the celebrity section. 4 out of 4 right! One question was where was Demi Moore born? (Roswell, New Mexico.)
    However they failed in government. Only 1 out of 4.
    One person did not know the secretary of state (John Kerry)
    Another did not know the three branches of government (Legislative,Executive, and Judicial. They got one of the three.
    One other individual did not know who the house speaker was. (John Boehner)
    One person was able to name the VP of the United States. (Joe Biden)
    They also failed math. Once again only 1 out 4.
    What is 40% of 200. The correct answer is 80. The listener guessed with 65.
    What is 9 times 7. The person said 27. (63)
    How many seconds are in an hour? 60 seconds times 60 minutes equals 3600 seconds. I don’t remember what they said.
    One person was able to figure out that 110 divided by 10 equals 11.
    The listeners did get 2 out of 4 in the current events section.
    They did not know the name of the probe that visited Pluto. (New Horizons)
    Which country did the U.S agree to open embassies with on July 1st. (Cuba) Also answered wrong.
    They knew about the nuclear deal with Iran and that South Carolina removed the Confederate flag.
    The rigged Ponzi scheme is unraveling. A lot people who fixate on celebrities are going to get a nasty slap in the face. They will have their wealth wiped out and will have no idea what to do.
    Much more emphasis needs to be placed on developing critical thinking skills. America as a whole needs to improve subjects like Math and Grammar. Just to name a few.

    • Herman

      Thanks Mike, I follow your blog everyday here in South Africa, the information is fresh and relevant!

    • Jerry C

      Long before improving Mathematics and Grammar, Americans need to learn morality first. Sad thing is that I agree it’s way too late for that.

  • JAY

    The KING of this WORLD NARENDRA MODI will save us

    • RageHard84

      Troll?

      • Infidel51

        Nut bag?

        • RageHard84

          I guessed Jay was a troll, you guessed (s)he was a nut bag. Your guess is as good as mine.

          • Infidel51

            Roger that.

  • K

    Michael always remember, the duty of the watchman on the wall. His duty is to call out a clear warning. You and some others, have done this. Those who choose not to listen, that is on them.

    • OzSurvivalGuy

      Amen!

  • Richard

    THIS IS AN OUTRAGE

    I mentioned this quite clearly before when you tried to pull this one on us, Michael. John Hussman IS ONE OF THE ABSOLUTE WORST FORECASTERS OUT THERE. He has lost his subscribers A FORTUNE. He has been bearish all the way up from 2009. Yes, THE ENTIRE RISE.

    I cannot believe you don’t know this.

    I suggest you pull this article IMMEDIATELY because otherwise you are going to have a mountain of egg on your face.

    • Balambalam

      Ooooooh Richard, Who do you think you are???

      Take the suppository out of where the sun does not shine and stop lecturing people on how and what they have to say. This is Michael’s blog, so shut the f… up and go make your own.

      You really are as much a nuisance as other troll here because you really don’t bring anything useful…

  • OzSurvivalGuy

    Michael, I would like to say thank you for your hard work putting together this blog and informing us all about the current status of the global economy. God bless from down under.

    • MichaelfromTheEconomicCollapse

      I love to hear from Australia! Thanks so much for those kind words.

      Michael

      • OzSurvivalGuy

        Glad you’re encouraged. At least you know that your words are being read all over the world. After all, the imminent economic collapse is going to be global. I believe its going to be a chain reaction. Things are going downhill very quickly in this world. I will be watching your blog closely in the coming weeks and months… do keep it up! I’m an experienced prepper and a survival blogger and am educating people around the globe on how to be prepared for all kinds of situations including an economic collapse. At the end of the day, the most important thing for us Christians is to look up and prepare for His coming!

        • RageHard84

          How global is prepping? I know there are preppers in US, Canada, South Africa, but where else? Is prepping also big in Asia Pacific? I notice Australia, Canada, America, South Africa, are all English speaking nations.

          • Jerry C

            The best preppers are probably the ones you haven’t even heard of. 😉

          • RageHard84

            Because they’re not on th’Internet or anything electronic?

          • OzSurvivalGuy

            Yes prepping is growing in Australia and NZ. Probably not in the pacific islands.

          • RageHard84

            I’d consider Australia and NZ to be Pacific Islands, as well as the American state of Hawaii. But none of the other Pacific Islands really have prepping, not even the English speaking ones?

          • OzSurvivalGuy

            That is correct.

          • RageHard84

            Ok then. Maybe the prepper community ought to expand outside of the nations listed. Disaster can strike people of any race, nation, or tongue.

        • ShirleyRManley

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        • IsaacLHawk

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      • OzSurvivalGuy

        Hi again Michael, just wondering what your thoughts are on Australia’s financial status? Do you think we will take a hard hit if things go pear shaped or will it only be “minor” in a sense? Australia as you would know like the US is in serious debt… it can’t keep going on like this.

      • Alwaystomorrow

        Mike,
        I am truly sorry for the problems but I have no control over them.

        Like everything else, hopefully these “name using” things will eventually stop.

        But I will continue the countdown.

  • Ronni

    I’m not very finance savvy, can someone tell me if I should close out my 401K? Serious responses only, please.

    • NowIHaveNoMoney

      Yes, cash it in and spend it all on pot and hookers, and yes I am serious.

    • Mike

      An easy thing to do would be to move your money from high risk funds to a money market (or whatever the lowest risk fund that is available for your 401K). A lot of imbeciles leaving comments tonight I might ad.

      • Ronni

        Thanks, I’ll do that. I sent the idiot you’re talking about!

        Subject: Re: Comment on An Expert That Correctly Called The Last Two Stock Market Crashes Is Now Predicting Another One

      • OzSurvivalGuy

        Yep that’s a good idea Mike. Yeah AlwasyTommorow is a problem troll on this website. I wish Michael got rid of him once and for all.

    • DB200

      Ronni, I did this month what Mike advises. I sold the stocks and switched to a money market fund. I’ll wait for 3-6 months to see what happens. If interest rates go up, I’ll be pretty save. If stocks or bonds get hammered, I’ll be pretty save. If nothing happens, I’ll be pretty save. Only if bonds or stocks rise with another 10-20% I’ll be crying. But with interest rates near zero, and company profits staying at the same level at best, how big are the changes that that will happen?

      • Ronni

        Thanks for the help. I’m calling T.Rowe Price tomorrow.

    • Jerry C

      A bird in the hand is worth more than two in the stock market. Cut your losses now & convert those worthless papers into something physically tangible (food, water, guns, ammo, gold, silver, etc…). It’s Cost vs Benefits Analysis. The costs of cashing 401k early is 20% penalty + current year tax rate (10%?) vs losing 30%+ or more when the stock market crashes. Isn’t that a sucker’s bet to begin with? Put your money into the stock market tax free (say tax rate would be 10%) but force you to pay an ADDITIONAL 20% penalty on early withdrawal (on top of the 10% tax rate anyways). And once you leave the 401k there, they can gamble all of it leaving you with all the losses but they get to keep the wins/gains. It’s a racket. Get out while the gett’n is good.

      Disclaimer:
      I am not a licensed financial consultant and any financial information I give is my own personal opinion, so that you cannot sue me. Blah blah blah…

      • Ronni

        Wouldn’t dream of suing you, Jerry. Thanks for your input.

  • WhoCaresFU

    Just let the fools loose their money. There is basically nothing the fed, imf, or wb can do at this point to stop the next downfall. So smile- because those that are too big to fail finally well…

  • JailBanksters

    Nice humps…
    Bad luck comes in threes, well bad luck for all those NOT a Central Bankster or your name is Jamoie Dimon, Lloyd Blankfien.

  • sigTRUTH

    Do any fundamentals still exist in the markets to even make these kind of predictions? The markets are rigged to the point we need to literally point out the gun in the room. Just look to China for a model of how the U.S. Gov will address our next “crash”. Threaten brokers who write sell orders, force buyers to by buy, international Plunge Protection injections, etc. We are living in a fiction.

    • DB200

      You are absolutely right. This fiction is called Financial Repression

  • Heinrich van Rooi

    Studied the charts already throroughly AND yes the experts are right stocks have a long long way to fall…high yield junk bonds are crashing well in advance… Indeed the months September and October will most definitely be the DANGER Zones..

  • Guest

    All, why are you giving Alwaystomorrow such a hard time. I don’t understand it. What is the big deal with counting down? Who does it hurt or who is he insulting? I personally believe we are going to see a financial meltdown in September. Alwaystomorrow may believe otherwise. Disagreeing is healthy, why the attacks and the name calling. How immature. This is an excellent website that Michael has and his posts are wonderful. People should post what they think. Michael himself does not even mind Alwaystomorrow tracking the days. So whats wrong with him tracking Michaels prediction? Truth is Michael did make a prediction and gave a timeline. I believe he is correct. If he is wrong and it happens in early 2016, who cares. Relax on the harsh words and aggressive behavior and focus on preparing for the coming storm. Its going to be ugly.

    • Concerned Citizen

      Larry Edelson of Weiss Research has been quoted several times by Michael on this blog for sounding the alarm of economic collapse. Larry is actually calling for a US Stock market expansion to take place in the next 2-3 years. He (Larry) predicts the DOW may reach 31,000 or more. I’m not saying Larry knows the future because he has certainly been burned on Gold forecasts but I’m pointing out conflicting information. You should not use Larry as a source to strengthen your position for a stock market crash when clearly he is calling for the opposite.

    • Alwaystomorrow

      Thanks for the kind words. No one seems to get someone was using my “Alwaystomorrow” name to make problems. That’s why all the harsh words towards me.

      I have lived through worse

      Thanks again..

      • alwaystomorrow

        The “guest” is also alwaystomorrow. This person really needs help.

  • Don

    Hussman’s been a terrible performer these last 6 years. Check out his track record.

    • DB200

      Mr. Hussman has been wrong because he doesn’t accept that markets are rigged. There is an elephant in the room called the FED.

      In 2013 the FED bought 92% of the debt that the US Federal Gouvernment issued that year. This is called Financial Repression because a normal financial rate of return is suppressed. Without the FED, the interest rates of gouvernment bonds would have been far higher. Savers and pensioners, are denied a fair interest rate, the debtors are given a free lunch. I don’t know how you call that but I call it a fraud.

      Another fellow that unterestimated the FED is Bill Gross and he made very bad returns in 2013.

      Michael is probably right with his prediction that markets are to crash, however when that happens probably the FED will start buying bonds and stocks (QE4). So more money printing. Which is perfectly legal in a fiat money system.

      For those of you who wonder what would be a fair rate of return, there is a rule of thumb that macro-economists use:

      interest rate = economical growth + inflation.

      Now plug in the numbers of shadow stats and see what happens to the interest rate ….

      And tnow hat you have calculated a fair interest rate, try to calculate the annual interest payments the Federal Gov. would have to pay ….

      What would be your conclusion then?

      • Scottsman

        Yea Bill Gross was wrong – at least in his timing because of the Fed QE and I agree, QE 4 is coming. I just wonder how long it can continue as our debt goes to $20 T – $22 T + etc.. all the while real unemployment is rising, welfare dependence increasing etc.. I suppose as long as we maintain the Reserve Currency status of the world, we can continue is some state – I guess. I just can’t see anything good in the future but I can’t predict a date of any impeding crash either.

  • Drud

    The big question in my mind is not whether the stock market will collapse (of course it will) or when (probably sooner, maybe later is as accurate as these things can be predicted), but what happens afterwards? We have all lived through at least 2 major market crashes (most of us 3 or more) but I fully believe this one will be far different. The previous 2 were (mostly) contained in the financial markets, will only slight spill-over into the commercial sector. The one headed our way seems much different. In 2008, according to Hank Paulson, we were only hours away from chaos in the streets and grocery stores out of milk. They were able to save the banking industry, mostly by foul means, in 2008, but they may not be able to do so this time around. So, my question is what happens then, in practical terms? Like most Americans, I have nothing to lose in a stock market crash, but like nearly all Americans, I am very much dependent on the system for food, water, gas, electricity, heat, etc. When the stock market collapses, how long until the banking system fails, assuming it will? How long from there until gas and ATM lines form (ala Greece)? Will the banks pull the plug on credit cards and what will happen if they do? Following Dimitry Orlov’s model (The Fives Stages of Collapse, if you have not read it you should) how long does it take contagion to spread from Financial Sector to Commercial to Governmental (all levels) to Social?
    I know no one has answers to these questions (and I wouldn’t believe anyone who claims to), but I would love to hear people’s thoughts. These are the very practical questions for those of us who are awake and trying to prepare.

    • Fred

      One thing I believe is that the Republic will survive the collapse in name only, not as a functioning form of democracy. The financial problems we face cannot be solved democratically.

      After a few weeks of chaos in the US an emergency will be declared and essentials will be distributed under the aegis of the Defense Production Act. As calm is restored the economy will be organized under the same.

      World wide trade will collapse, there will be riots and death, and then demagogues will arise by blaming various “villains” and predators. This is not a scenario conducive to peace. The world will begin to divide into trading/military alliances according to each country’s needs and contributions to the various alliances. Eventually wars will come after several years – they will be very bad and kill billions.

      For short term an American should have a couple of months supply of rice, beans, salt, water and other essentials plus all the cash you can hoard and defend. US$ will be safer and more useful than gold during the chaos (gold will attract attention you don’t want). The chaos will not last too long, but as it begins do not pay out any money for anything other than essentials, there will be time for settling accounts later.

      During the chaos keep your head down, your hands clean, and your mouth shut. This country will not accept anarchy.

  • DB200

    “Back in late 2007, Hussman warned us about what was coming in 2008, but most people did not listen.” Mr. Hussman was not the only one that warned us.

    I remember an interview in january 2008 on television with Jim Rogers. He told the interviewer to sell stocks because 2008 would not be a good year for stocks. I remember that because I thought at that time that Jim Rogers was making a mistake and that the world economy was strong, this being the reason that oil prices and all other commodities were going up. As I found out the hard way, Jim was right, I was wrong.

  • Gary J Hill

    I am no expert, but I moved my money to interest bearing a month ago. All you need is a good understanding of God’s Word to know what is coming.

  • sre

    Ha Ha The Dow-Jones is up today. While I don’t know much about the stock market, I do know that “up: is the opposite of “down”, therefore, the opposite of a “crash”. The stock market is rising, not falling.

    • The Stock Market does NOT define the whole Financial market little padawan…

    • andrew

      no you dont no much

    • andrew

      The market is turning now into a major bear market
      just looking at 1 day and saying there is no crash shows your lack of understanding yes there can be days during a massive selloff that drive mainstreet media wild that hasnt happened yet but it will soon also people must understand that during 2000 and 2008 when prices were crashing there were some of the best bull runs in market history albeit only lasting a short time but this phenomenon does happen during major bear markets im giving september 14th as the day of the big crash or a couple of days either side this is when there will be know hiding this collapse from the masses.

    • Marco

      Food for thought, narrow-minded one: the Dow Jones experienced several record-breaking single-day gains in the midst of the 2008 collapse. Markets go up and down and are made up of micro cycles within macro cycles. So during a long-term cycle, the daily closing price of an index will be up or down, but in a bear market it will have lower lows and lower highs.

      But you go ahead and listen to your own “intelligence” and keep your money in the markets.

      • Donald Wilson

        I got out, cashed my 401K and IRA in 2006, traded in everything for gold, silver, lead and food and other life sustaining materials. I would invest a nickel in the stock market…it’s all rigged to eventually fail. Good luck and Good night..,

  • FreedomFighter2015

    I expect another Lehman Brothers style bankrupcy of TBTF bank, probably Goldman Sachs or even JP Morgan.

  • GetReal4U2

    time is very short…

  • Renard Johnson

    I am the guy who predicted the Great Crash of 2008 and didn’t just write a few hard to interpret lines, I wrote an entire prophetic historic book on the matter. There are a few people who were paying attention back in the days of the “Credit Crunch”. Now days so many are claiming when the next crash will arrive. First let me say that in my experience of living through the biggest collapse in 2008 It created a instinctive system within my nature that gives me an clear vision of where we are right now at this financial stage of our lives. Many of the subjects the Michael writes about is just the corrupt and broken structure of the economic malicious meltdown of what I witnessed in 2006-2008. The collapse never left. It’s in full speed effect mode. This has to be so. Get ready for the best has yet to come. No Fear just love!

  • Ismail

    Michael, would you write an article explaining what you mean about “getting ready”. I think many people aren’t sure about how to get prepared for the coming crisis.

    • Jerry C

      My guess is spiritually, mentally & physically.

  • Vess

    Hussman has been harping about the markets being overvalued for more than 5 years already. One day the bull market will die and a bear market will come and Hussman will be right – as right as a stopped clock twice a day.

  • MrSmithwayne Smith

    And who are the ones selling the junk bonds, the criminals who make the most money off them and who pander to capital hill for lax laws that allow them to make huge profits off junk and derivatives, fake insurance, right up to the point they know the system will implode.. then go on capital hill and lie through their teeth how they didnt know or had any association or dealings with the very criminal activity that destroys millions of peoples lives and homes around the nations of the world. Shame on you all who know and understand this corrupt system that supports the rich and destroys the poor.

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