Stock Market Plunges Again – Global Stocks Down 5 Weeks In A Row – 8 Trillion Dollars In Wealth Wiped Out

It’s not over.  The worst October stock market crash since 2008 got even worse on Friday.  The Dow was down another 296 points, the S&P 500 briefly dipped into correction territory, and it was another bloodbath for tech stocks.  On Wednesday, I warned that there would be a bounce, and we saw that happen on Thursday.  But the bounce didn’t extend into Friday.  Instead, we witnessed another wave of panic selling, and that has many investors extremely concerned about what will happen next week.  Overall, global stocks have now fallen for five weeks in a row, and during that time more than 8 trillion dollars in global wealth has been wiped out.  That is the fastest plunge in global stock market wealth since the collapse of Lehman Brothers, and it is yet another confirmation that a major turning point has arrived.

The wild swings up and down that we witnessed this week are very reminiscent of what we saw in 2008.

Markets just don’t go down in a straight line.  In fact, some of the best days in all of Wall Street history happened right in the middle of the last financial crisis.

When markets are very volatile, the overall trend tends to be down.  So what investors should be hoping for are extremely boring days on Wall Street when not much happens.  That has been the usual state of affairs for much of the past decade, but now volatility has returned with a vengeance.  The following is how CNBC summarized the carnage that we witnessed on Friday…

The Dow Jones Industrial Average closed 296.24 points lower at 24,688.31 after dropping 539 points at its lows of the day. The Nasdaq Composite dropped 2.1 percent to 7,167.21. At its lows, the tech-heavy Nasdaq had fallen more than 3 percent.

The S&P 500 fell 1.7 percent to 2,658.69 and briefly entered into correction territory, trading more than 10 percent below its record high reached in September. The average stock market correction, since WWII, results in a 13 percent drop and lasts for four months if it does not turn into a full-fledged bear market.

Larry Benedict, CEO of The Opportunistic Trader, said traders “don’t want to be long heading into the weekend.” He added, “S&P now down on the year and people are more afraid to be long today than they were when market was 10 percent higher.”

And when you step back and take a longer-term view of things, the devastation is breathtaking.  The following facts come from Zero Hedge

  • Dow down 9% from record high (down 4 of last 5 weeks)
  • S&P down 10.1% from record high (down 4 of last 5 weeks)
  • Nasdaq down 13% from record high (down 4 weeks in a row)
  • Dow Transports down 15.2% from record high (down 6 weeks in a row)
  • Small Caps down 15.8% from record high (down 6 weeks in a row)

More importantly, global systemically important bank stocks have now fallen for 5 weeks in a row, and they have now plunged more than 30 percent from the peak.

In other words, the “too big to fail banks” around the world have already seen almost a third of their value wiped out.

There are quite a few global candidates that could potentially become “the next Lehman Brothers”, and once one “too big to fail bank” goes down, it could escalate this new financial crisis very rapidly.

But for most ordinary Americans, the main concern is about keeping their own money safe.  Thanks to low returns almost everywhere else, more retirement money is in the stock market than ever before, and many Americans are very anxious about what a stock market crash would mean for their savings…

Nearly 40 percent of Americans said they were “anxious” about stock market volatility, according to Allianz Life’s 2018 Market Perceptions study, mainly because they worried they would not be able to protect their retirement savings.

In the end, a lot of people are going to get completely wiped out.

Hopefully you will not be one of them.

Of course the mainstream media continues to insist that everything is going to be just fine.  In fact, CNN is telling people that now is “a good time for investors to double down on their investments”

Experts say big sell-offs are often a good time for investors to double down on their investments. One recommended looking for companies that are expected to post healthy gains in sales and earnings. A strong balance sheet and a steadily growing dividend don’t hurt either.

“With earnings season in full force, this is when stock pickers can add a lot of value,” said Ernesto Ramos, managing director of active equities with BMO Global Asset Management. “There really was no good reason for the market to be down as much as it was Wednesday.”

That is about the exact opposite from the advice that they should be giving, but unfortunately this is the narrative that we get from the corporate media before every major crisis.

October has historically been the most volatile month for stocks, and without a doubt this has been a wild month.  Of course the midterm elections are coming up early next month, and those results could potentially spook investors.  But once we get past that, hopefully the markets will start to settle down.

But if things continue to unfold as they did in 2008, this crisis could continue to escalate during the months ahead, and that would especially be true if some sort of “trigger event” sent a major surge of panic through the marketplace.

At this point, investors are extremely jumpy.  For example, even though Amazon reported very good earnings this week, the stock crashed on Friday because revenue growth was slightly below expectations.

Any piece of bad news could send the markets tumbling right now, and if a major disaster were to happen we could be talking about a total collapse.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium members-only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Stock Market Crash! The Dow Has Now Plunged 2,368 Points From The Peak Of The Market

The level of panic that we witnessed on Wall Street on Wednesday was breathtaking.  After a promising start to the day, the Dow Jones Industrial Average started plunging, and at the close it was down another 608 points.  Since peaking at 26,951.81 on October 3rd, the Dow has now fallen 2,368 points, and all of the gains for 2018 have been completely wiped out.  But things are even worse when we look at the Nasdaq.  The percentage decline for the Nasdaq almost doubled the Dow’s stunning plunge on Wednesday, and it has now officially entered correction territory.  To say that it was a “bloodbath” for tech stocks on Wednesday would be a major understatement.  Several big name tech stocks were in free fall mode as panic swept through the marketplace like wildfire.  As I noted the other day, October 2018 looks a whole lot like October 2008, and many believe that the worst is yet to come.

But in the short-term we should see some sort of bounce once the current wave of panic selling is exhausted.  During every major stock market crash in our history there have been days when the stock market has absolutely soared, and this crash will not be any exception.

If we do see a bounce on either Thursday or Friday, please don’t assume that the crash is over.  Most key technical levels have already been breached, and even a small piece of bad news can send stocks plunging once again.

On Wednesday there really wasn’t anything too unusual that happened, but stocks cratered anyway.  Here is a summary of the carnage…

-The Dow Jones Industrial Average plummeted 608 points on Wednesday.

-The Dow is now down 7.1 percent for the month of October.

-The S&P 500 has now fallen for 13 of the last 15 trading days.

-The S&P 500 is now down 8.9 percent for the month of October.

-A whopping 70 percent of all S&P 500 stocks are already in correction territory.

-A third of all S&P 500 stocks are already in bear market territory.

-It was the worst day for the Nasdaq since 2011.

-The Nasdaq is now down 11.7 percent for the month of October.

-At this point, the Nasdaq has officially entered correction territory.

-The Russell 2000 is now down about 15 percent from the peak as it hurtles toward bear market territory.

-Over in Germany, Deutsche Bank closed at yet another record low as it teeters on the brink of disaster.

-Global systemically important bank stocks have now fallen a total of 30 percent from the peak of the market.

Hopefully things will stabilize for a while, but many experts are warning that things could get much worse from here

The latest swoon, which knocked the S&P 500 down more than 3 percent Wednesday, signaled to many Wall Street pros that the decline was entering a new, more dangerous phase. There’s growing concern now that this decline is more than a garden variety pullback, or drop of 5 percent to 9.99 percent, and could morph into a drop of 10 percent of more for the broad market.

“With the big sell-off today, the market may have moved from pullback into correction territory,” says Nick Sargen, chief economist and senior investment advisor for Fort Washington Investment Advisors.

All it is going to take is one more really bad day for the Dow to push us officially into correction territory.  And once we breach that 10 percent threshold, that could set off another round of panic selling.

On Wednesday, the one piece of bad news that kind of rattled investors was the fact that new home sales plunged dramatically in September…

This is a disastrous print:

August’s 629k SAAR was revised drastically lower to 585k and September printed 553k (SAAR) massively missing expectations of 625k (SAAR) – plunging to the weakest since Dec 2016…

That is a 13.2% collapse YoY – the biggest drop since May 2011

Without a doubt, a 13 percent year over year decline is catastrophic, and this is starting to remind many people of the housing crash that we witnessed back in 2008.  Homebuilder stocks have been plummeting all month, and home prices are collapsing all over the nation.

In my previous article entitled “Why Are So Many People Talking About The Potential For A Stock Market Crash In October?”, I noted that this has been the month with the most market volatility ever since the Dow was first established.  Absent some kind of major event, the stock market usually gets kind of sleepy around Thanksgiving and does not really spring to life again until after the new year has begun.

Of course it is entirely possible that this year could be different.

We have entered a time when global events appear to be accelerating significantly.  Earlier today, bombs were mailed to major political leaders all over the United States.  In the Middle East, it looks like Israel and Hamas could go to war at any moment.  And we continue to see a rise in major seismic events – including three very large earthquakes that just hit the Cascadia Subduction Zone.

It truly does appear that the elements for a “perfect storm” are beginning to come together.  We have been enjoying a period of relative stability for so long that many Americans have allowed themselves to become lulled into a state of complacency.  That is a huge mistake, because all along we have been steamrolling toward disaster, and nothing has been done to alter our course.

Dark days are ahead my friends, and I strongly urge you to get ready.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium members-only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Teetering On The Brink Of Disaster: 14 Of 19 Bear Market Signals Have Now Been Triggered

October 2018 is turning out to be a lot like October 2008.  The S&P 500 has now fallen for 12 of the last 14 trading days, and it is on pace for its worst October since the last financial crisis.  But the U.S. is actually in much better shape than the rest of the world at this point.  Even though they have fallen precipitously in recent days, U.S. stocks are still up 3 percent for the year overall.  On the other hand, global stocks (excluding the U.S.) are now down more than 10 percent for the year, and they are down more than 15 percent from the peak of the market in January.  All it is going to take is a couple more really bad trading sessions to push global stocks into bear market territory.

And even though U.S. stocks are still outperforming the rest of the world, many are anticipating that the U.S. is definitely heading for a bear market as well.

According to Bank of America, 14 out of their 19 “bear market indicators” have now been triggered

“Expect a long bout of volatility,” Bank of America strategists led by Savita Subramanian wrote in a report published on Sunday.

Bank of America keeps a running tally of “signposts” that signal looming bear market. The bad news is that 14 of these 19 indicators, or 74%, have been triggered. Two more were toppled earlier this month: the VIX volatility index (VIX) climbed above 20 and a growing number of Americans expect stocks to go up.

Of course not all 19 indicators need to be triggered in order for a bear market to happen.  These indicators are simply signposts, and what they are telling us is that big trouble could be brewing for the financial markets.

And Tuesday was certainly another chaotic day for Wall Street.  The Russell 2000 experienced another extremely disappointing day, and it is now officially red for the year

Small-cap stocks erased all of their gains for the year on Tuesday, and the Dow Jones Industrial Average at one point was not be too far behind.

The Russell 2000, composed of publicly traded companies with a market capitalization between $300 million and about $2 billion, shed 0.8 percent on Tuesday, putting it into the red for 2018, down 0.6 percent.

The number of stocks that are at 52-week lows far outnumbers those that are at 52-week highs, but a handful of big name stocks has been keeping the market from plummeting too dramatically.

In the short-term, we should expect some more wild swings up and down, but meanwhile we continue to receive more troubling news about the real economy.

For example, we recently learned that existing home sales were down once again last month

The metric of interest today is existing home sales. The reading came in at 5.15m units, which was well below the estimated 5.3m units and 4.1% below year ago levels. As the chart below shows, existing home sales have been falling all year long, and year-over-year growth rates have been mostly negative since September, 2017.

And auto sales are way down all over the country

A growing number of auto dealers around the country is seeing a noticeable drop in retail sales and customer traffic in showrooms, raising the possibility that a long-anticipated slowdown in auto sales has arrived.

“We are definitely seeing business pull back,” said Scott Adams, the owner of a Toyota dealership in Lee’s Summit, Missouri, just outside Kansas City. “September was off some, but this month our car sales are down 12 percent and our truck sales are down 23 percent.”

These things would not be happening if the economy was in good shape.

Every time the Federal Reserve goes through an interest rate hiking cycle it causes big problems for the economy, and this is something that President Trump alluded to during an interview with the Wall Street Journal

In an interview Tuesday with The Wall Street Journal, Mr. Trump acknowledged the independence the Fed has long enjoyed in setting economic policy, while also making clear he was intentionally sending a direct message to Mr. Powell that he wanted lower interest rates.

“Every time we do something great, he raises the interest rates,” Mr. Trump said, adding that Mr. Powell “almost looks like he’s happy raising interest rates.” The president declined to elaborate, and a spokeswoman for the Fed declined to comment.

No matter what President Trump does, disaster is inevitable if the Federal Reserve continues to raise rates.  The Federal Reserve has far more control over the economy than Trump does, and that is why many of his supporters are hoping that Trump adopts Ron Paul’s “End the Fed” message for the 2020 presidential campaign.

Speaking of the Federal Reserve, former Fed chair Paul Volcker is saying that the U.S. is facing “a hell of a mess”

Former Federal Reserve Chairman Paul Volcker, who has reached legend status in the world of central banking, isn’t optimistic about current conditions.

When Volcker looks around now, he sees “a hell of a mess in every direction,” including a lack of basic respect for government institutions, a current Fed that seems to be following a completely arbitrary benchmark and a “swamp” in Washington run by plutocrats.

Without a doubt, it is most definitely true that we are facing “a hell of a mess”, but most Americans are entirely clueless about what is coming.

In the aftermath of the 2008 crisis, the economy stabilized and global central banks were able to inflate the biggest financial bubble in human history.

Once this bubble bursts, there won’t be a similar “recovery” this time around.

Along with the rest of the world, the U.S. is headed for an unprecedented period of chaos and pain.  We should be thankful for each day of relative stability that we are still able to enjoy, because time is rapidly running out.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium members-only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Global Banking Stocks Are Crashing Hard – Just Like They Did In 2008

Global stocks are falling precipitously once again, and banking stocks are leading the way.  If this reminds you of 2008, it should, because that is precisely what we witnessed back then.  Banking stocks collapsed as fear gripped the marketplace, and ultimately many large global banks had to be bailed out either directly or indirectly by their national governments as they failed one after another.  The health of the banking system is absolutely paramount, because the flow of money is our economic lifeblood.  When the flow of money tightens up during a credit crunch, the consequences can be rapid and dramatic just like we witnessed in 2008.

So let’s keep a very close eye on banking stocks.  Global systemically important bank stocks surged in the aftermath of Trump’s victory in 2016, but now they are absolutely plunging.  They are now down a whopping 27 percent from the peak, and that puts them solidly in bear market territory.

U.S. banking stocks are not officially in bear market territory yet, but they are getting close.  At this point, they are now down 17 percent from the peak…

Monday early afternoon, the US KBW Bank index, which tracks large US banks and serves as a benchmark for the banking sector, is down 2.5% at the moment. It has dropped 17% from its post-Financial Crisis high on January 29.

Of course European banking stocks are doing much worse.  Right now they are down 27 percent from the peak and 23 percent from a year ago.  The following comes from Wolf Richter

But unlike their American brethren, the European banks have remained stuck in the miserable Financial Crisis mire – a financial crisis that in Europe was followed by the Euro Debt Crisis. The Stoxx 600 bank index, which covers major European banks, including our hero Deutsche Bank, has plunged 27% since February 29, 2018, and is down 23% from a year ago

I wish that we didn’t have a global economic system that was so dependent on the “too big to fail” banks, but we do.

If they aren’t healthy, nobody is going to be healthy for long, and it is starting to look and feel a whole lot like 2008.

But unlike 2008, we also have a global trade war to contend with.  The CEO of one yacht company recently told USA Today that tariffs have had a “catastrophic” effect on his company…

Tariffs imposed on goods by the European Union, and the Chinese and American governments on boats, cribs, bourbon, and more have put Wisconsin businesses between a rock and a hard place. The tariffs imposed are already damaging a bloated bubble economy and the hardships are just beginning.

“It’s been catastrophic,” said Rob Parmentier, who is the president and CEO of Marquis-Larson Boat Group, which builds Carver yachts in Pulaski, Wisconsin. According to USA Today, the first “hand grenade,” as Parmentier described it, tossed during the trade wars at him specifically, was a 25 percent tariff the European Union placed this year on boats built in the United States, along with scores of other products including Harley-Davidson motorcycles.

I have previously warned my readers that the damage caused by this trade war would get progressively worse the longer that it lasts.

Many companies have been trying to ride it out, but eventually the money runs out and layoffs start happening

“We’ve had a lot of order cancellations. Canada and Europe have essentially stopped buying boats,” Parmentier said according to USA Today. “We’ve been absorbing some of the additional costs … hoping the tariffs will go away. But we can only do that for so long,” he said. The next step is layoffs.

Anyone that thought that this trade war would not have very serious consequences was just fooling themselves.  According to one source, tariffs paid by U.S. businesses are up 45 percent compared to a year ago…

“For the most recent months available, August 2018, the amount of tariffs paid increased by $1.4 billion — or 45% — as compared to tariffs paid in August 2017. Tariff costs in Michigan tripled to $178 million and more than doubled in multiple states — to $424 million in Texas, $193 million in Illinois, $50 million in Alabama, $29 million in Oklahoma, $23 million in Louisana, and $7.3 million in West Virginia.

These costs strain businesses of all sizes but are particularly painful for small business, manufacturers, and consumers who bear the burden of tariff increases in the form of higher prices,” via the data compiled by The Trade Partnership and released by Tariffs Hurt the Heartland.

And it doesn’t look like this trade war is going to end any time soon.  In fact, one key Chinese official recently made it very clear that China is not afraid of a long trade war…

On Monday in Beijing, Zhang Qingli, a leading member of a Chinese committee tasked with forging alliances with other nations, told a small group of U.S. business leaders, lobbyists and public relations executives that China refuses to be intimidated by an ongoing trade war with the Trump administration.

“China never wants a trade war with anybody, not to mention the U.S., who has been a long term strategic partner, but we also do not fear such a war,” Zhang said through a translator, according to a meeting attendee who declined to be named.

We are entering a time when the economy was likely to slow down anyway, but if stocks continue to crash and global banking woes escalate, that is going to spread fear and panic like wildfire.

And when there is fear and panic in the air, lending tends to really tighten up, and a major credit crunch is just about the last thing that we need right now.

It’s been a really bad October for global markets so far, and more trouble is brewing.  Hold on to your hats, because it looks like it is going to be a bumpy ride ahead.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

The Dow Has Fallen Nearly 1,500 Points From The Peak Of The Market, And Many Believe This “October Panic” Is Just Beginning…

We haven’t had an October like this in a very long time.  The Dow Jones Industrial Average was down another 327 points on Thursday, and overall the Dow is now down close to 1,500 points from the peak of the market.  Unlike much of the rest of the world, it is still too early to say that the U.S. is facing a new “financial crisis”, but if stocks continue to plunge like this one won’t be too far away.  And as you will see below, many believe that what we have seen so far is just the start of a huge wave of selling.  Of course it would be extremely convenient for Democrats if stocks did crash, because it would give them a much better chance of doing well in the midterm elections.  This is the most heated midterm election season that I can ever remember, and what U.S. voters choose to do at the polls in November is going to have very serious implications for the immediate future of our country.

After a very brief rally earlier in the week, stocks have been getting hammered again.  The S&P 500 has now fallen for 9 out of the last 11 trading sessions, and homebuilder stocks have now fallen for 19 of the last 22 trading sessions.  It was a “sea of red” on Thursday, and some of the stocks that are widely considered to be “economic bellwethers” were among those that got hit the hardest

Several stocks seen as economic bellwethers fell sharply in the U.S., including United Rentals and Textron, which dropped at least 11 percent each. Snap-on and Caterpillar, meanwhile, fell 9.6 percent and 3.9 percent, respectively.

Hopefully we will see another bounce on Friday, but at this moment it looks like things could go either way.

But no matter what happens on Friday, many are convinced that the worst is yet to come, and here are some of the reasons…

China

Chinese stocks have fallen 12 percent so far this month, and overall they are down 26 percent over the last 12 months.

That means that China is now well into a bear market.

And history tells us that when Chinese stocks fall 10 percent or more within 30 days, that is usually very bad news for U.S. stocks.  The following comes from CNBC

But a study by CNBC using analytics tool Kensho found that U.S. stocks are more often weaker when the declines in Chinese stocks are large. Over the past 10 years, when Shanghai stocks fell 10 percent or more in a 30-day period, the U.S. stock market was up only about 30 percent of the time, and the U.S. indexes all averaged significant declines.

For instance, the S&P 500 on average fell 4.8 percent when China was down 10 percent or more, and the Nasdaq was even worse with a loss of 5.3 percent.

The Chinese just had the worst quarter for economic growth since the first quarter of 2009, and many believe that is a huge sign of trouble for the global economy as a whole.

The Federal Reserve

In recent weeks I have been hammering the Federal Reserve over and over again, and they definitely deserve it.

The Fed is raising interest rates way too rapidly, and this is going to kill the economy and at some point it will inevitably cause a horrifying market crash.

And I am far from alone in criticizing the Fed.  For instance, just consider what CNBC’s Jim Cramer said about the Fed on Thursday

Stocks tanked on Thursday because people are finally realizing that the Federal Reserve has the power to hurt stocks and slow the economy, CNBC’s Jim Cramer said after the Dow Jones Industrial Average fell more than 300 points.

“This is one of those moments where it’s dawning on people that maybe all the assurances that we don’t need to be afraid of the Fed are being proven to be totally bogus,” the “Mad Money” host said.

Every Fed rate hiking cycle since 1957 has ended in either a recession or a market crash, and this one won’t be any different.

Forced Selling

In this day and age, when markets start to plunge things can get out of hand very quickly thanks to all of the computer trading that starts to happen.

This is something that Goldman Sachs CEO David Solomon says his firm is watching very closely

Goldman Sachs CEO David Solomon said Thursday that he believes part of October’s steep stock sell-off was the result of programmatic trading.

“There’s no question when you look at last week, some of the selling is the result of programmatic selling because as volatility goes up, some of these algorithms force people to sell,” Solomon told CNBC’s Wilfred Frost. “Market structure can, at times, contribute to volatility and one of the things that we’re spending a bunch of time thinking about at the firm is how changes in market structure over the course of the last 10 years will affect market activity.”

One key level to watch in the coming days is 25,000 on the Dow Jones Industrial Average.

That is a very important psychological level, and if this downturn successfully breaks through that barrier we could very quickly move toward 24,000 thanks to programmatic selling.

This current bull market has lasted for much longer than it should have, but now it appears that the bubble may have burst.

And once the bears take control, things could get bad for a very long time.  The following comes from investing expert Egon von Greyerz

It now looks like the secular bull market in stocks is turning into a secular bear market that could last for several years if not decades. The stock market acts as a sentiment indicator for what happens in the real economy. No indicator is perfect and stock market moves will be exaggerated in both directions. It is now likely that the world is starting an economic downturn of epic proportions.

During previous market downturns over the past 10 years, there was still a lot of optimism on Wall Street.

But these days it seems like “doom and gloom” is the dominant theme in trading circles, and it won’t take too much to turn that “doom and gloom” into “fear and panic” as everyone races for the exits as quickly as they can…

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

“When the bubble bursts, America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression”

The bigger they come, the harder they fall.  Currently, we are in the terminal phase of an “everything bubble” which has had ten years to grow.  It is the biggest financial bubble that our country has ever seen, and experts are warning that when it finally bursts we will experience an economic downturn that is even worse than the Great Depression of the 1930s.  Of course many of us in the alternative media have been warning about what is coming for quite some time, but now even many in the mainstream media have jumped on the bandwagon.  The Economist is one of the most prominent globalist mouthpieces in the entire world, and so I was stunned when I came across one of their articles earlier today that was entitled “Another economic downturn is just a matter of time”.  When the alternative media and globalist media outlets are both preaching economic doom, that is a very clear sign that big trouble is imminent.

But for the moment, global financial markets seem to have settled down a bit.  U.S. markets were down on Monday, but there wasn’t that much volatility.  Once again, it was tech stocks that got hit the hardest

Apple and Netflix pulled back more than 1.8 percent each. Netflix fell after Goldman Sachs and Raymond James slashed its price targets on the video-streaming giant. Apple dropped after Goldman Sachs said the tech giant’s earnings could fall short this year as demand in China slows. Amazon, Microsoft and Alphabet also traded lower.

This may seem odd to hear, but what happened on Monday was actually good news for Wall Street.

Whether the markets go up or down, what investors should want more than anything else right now is calm, and that is precisely what we witnessed on Monday.  Yes, tech stocks took a bit of a hit, but overall there was not much panic in the marketplace and that is a positive sign (at least in the short-term) for Wall Street.

But that doesn’t mean that some big event isn’t going to cause another wave of panic on Wall Street by the end of the week.  Nothing about the long-term outlook has changed at all.  We have entered a time when the Ponzi scheme that we call “our financial system” could literally collapse at any moment.

And when it does collapse, the U.S. economy is going to experience pain unlike anything that we have ever seen before.  In his most recent article, Ron Paul warns that when the “everything bubble” finally bursts “America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression”…

The Fed will be unsuccessful in keeping the everything bubble from exploding. When the bubble bursts, America will experience an economic crisis much greater than the 2008 meltdown or the Great Depression.

This crisis is rooted in the failure to learn the lessons of 2008 and of every other recession since the Fed’s creation: A secretive central bank should not be allowed to manipulate interest rates and distort economic signals regarding market conditions. Such action leads to malinvestment and an explosion of individual, business, and government debt. This may cause a temporary boom, but the boom soon will be followed by a bust. The only way this cycle can be broken without a major crisis is for Congress both to restore people’s right to use the currency of their choice and to audit and then end the Fed.

Of course Ron Paul is far from alone.

Just the other day, Peter Schiff said essentially the exact same thing

Economic guru Peter Schiff is saying that the next market crash will be “far more painful” than that of the Great Recession in 2008. With rising interest rates and tariffs spiking the cost of living, Americans will have some difficult financial times ahead.

“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said. “This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business. Schiff is predicting a recession, accompanied by rising consumer prices, that will be far more painful than the 2007-2009 Great Recession.

The Federal Reserve and other global central banks worked very hard to inflate this bubble for a very long time, and now the Federal Reserve is raising interest rates quite rapidly.

They seem determined to burst their own bubble, and in the process they are going to create immense economic devastation all over the planet.

When President Trump said that the Federal Reserve has “gone crazy”, he was right on the money, and hopefully the American people will finally see that it is time to shut the Fed down permanently.

And as I noted earlier, the mainstream media also seems to at least partially understand what is happening.  For example, the following comes from a Bloomberg article entitled “Get Out of Equities Before It’s Too Late, Says Fund Manager”

The tumble in equities may go deeper than the correction earlier this year and investors should get ready to sell, according to a Budapest-based fund manager.

“Investors have to start looking for a way out from equities now,” Attila Dzsubak, investment director at MKB-Pannonia Fund Manager, who helps oversee 670 billion forint ($2.4 billion) in assets, said in Budapest. “Past experience shows that exits can quickly become too narrow.”

In the stock market, you only make money if you buy at the right time and if you sell at the right time.

Many of those that are wealthy on paper at the moment are going to see that paper wealth disappear in stunning fashion during the coming collapse.

America’s pride is largely based on the staggering wealth that we have been able to enjoy, but what is going to happen once that wealth is gone?

For the moment the bubble still lives, but the clock is ticking…

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

Global Markets Continue To Fall As Bloomberg Warns “The Next Financial Crisis Is Staring Us In The Face”…

It looks like it could be another tough week for global financial markets.  As the week began, markets were down all over the world, and relations between the United States and Saudi Arabia have taken a sudden turn for the worse.  That could potentially mean much, much higher oil prices, and needless to say that would be a very bad thing for the U.S. economy.  It has really surprised many of us how dramatically events have begun to accelerate here in the month of October, and the mood on Wall Street has taken a decidedly negative turn.  Yes, U.S. stocks did bounce back a bit on Friday (as I correctly anticipated), but it was much less of a bounce than many investors were hoping for.  And this week got off to a rough start with all of the major markets in Asia down significantly

In the Greater China region, the Hang Seng index in Hong Kong fell by around 0.9 percent in early trade. The Shanghai composite also slipped by 0.33 percent while the Shenzhen composite bucked the overall trend to edge up by 0.4 percent.

In Japan, the Nikkei 225 fell by 1.48 percent in morning trade, while the Topix index slipped by 1.17 percent, with most sectors trending lower.

But what happened in Asia was nothing compared to what we witnessed in Saudi Arabia.

At one point the stock market in Saudi Arabia had plummeted 7 percent after news broke that President Trump warned that the Saudis could face “severe punishment” for the disappearance of journalist Jamal Khashoggi.

The Saudis are denying doing anything wrong, but everyone agrees that he is missing, and everyone agrees that he was last spotted entering the Saudi Consulate in Istanbul on October 2nd.

And it is being reported that U.S. intelligence had previously intercepted communications which indicated that the Saudis planned to abduct Khashoggi.

It is believed that Khashoggi was dismembered after being abducted by the Saudis, and all of the major western powers have expressed major concern about his fate.  But the Saudis insist that they didn’t have anything to do with his disappearance, and they are threatening “greater action” if any sanctions are imposed upon them.  The following comes from USA Today

Saudi Arabia denied any involvement in the disappearance of Washington Post contributing journalist Jamal Khashoggi and warned Sunday that any sanctions against the oil-rich kingdom would be met with “greater action” and possibly exploding oil prices.

“The kingdom affirms its total rejection of any threats and attempts to undermine it, whether by threatening to impose economic sanctions, using political pressures or repeating false accusations,” the government said  in a statement released to Saudi media. “The Kingdom also affirms that if it receives any action, it will respond with greater action.”

So what might that “greater action” look like?

Well, one Saudi official is warning that the price of oil could rise to “$100, or $200, or even double that figure”

In a column published just after the SPA statement, Saudi-owned Al Arabiya channel’s General Manager Turki Aldakhil warned that imposing sanctions on the world’s largest oil exporter could spark global economic disaster.

“It would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure,” he wrote.

If the price of oil did shoot up to $200 a barrel, that would be absolutely crippling for the U.S. economy.

You see, it wouldn’t just cost a whole lot more to fill up your gas tank.  Virtually everything that we buy has to be transported vast distances, and so the price of gasoline must be factored into all of those products.

The price of food is already ridiculously high, and so I don’t even want to imagine what a trip to the grocery store might look like if the Saudis follow through on their threats.

Meanwhile, warnings from the mainstream media of a new crisis on Wall Street continue to become even more dramatic.  For example, the following comes from a Bloomberg article entitled “The Next Financial Crisis Is Staring Us in the Face”

The financial crisis ripped through Wall Street 10 years ago, pushing the global economy to the edge of the abyss. One might think those searing experiences would have created a learning opportunity — for managing risk better, understanding structural imbalances in the financial markets, even learning a bit about how our own cognitive processes malfunction.

Instead, we have little new wisdom or self-awareness to show for that traumatic event.

And this is how that Bloomberg article ended

As memories of the crisis fade as the economy recovers, we find the seeds of the next crisis are already being planted. They are the exact same issues of debt and mismanaging risk and not understanding our own limitations. Failing to learn from our prior experiences, we seem doomed to repeat them. We only have ourselves to blame.

That sounds like it could have been ripped right out of The Economic Collapse Blog.

Of course the author of that Bloomberg article is right on the money.  We never learned the very hard lessons that we should have learned from the crisis of 2008.  Instead, we simply reinflated all of the old bubbles and made them bigger than ever before.

Now America is 68 trillion dollars in debt, and our day of reckoning is so close that even the mainstream media is sounding the alarm.

It should be another very interesting week.  Monday may set the tone for the entire week, and so hopefully U.S. markets will bounce back some more.  If they don’t, it could set off another round of panic…

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium-members only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.