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Corporations Are Defaulting On Their Debts Like It’s 2008 All Over Again

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Corporate Debt Defaults - Public DomainThe Dow closed above 18,000 on Monday for the first time since July.  Isn’t that great news?  I truly wish that it was.  If the Dow actually reflected economic reality, I could stop writing about “economic collapse” and start blogging about cats or football.  Unfortunately, the stock market and the economy are moving in two completely different directions right now.  Even as stock prices soar, big corporations are defaulting on their debts at a level that we have not seen since the last financial crisis.  In fact, this wave of debt defaults have become so dramatic that even USA Today is reporting on it

Get ready to step over some landmines, investors. The number of companies defaulting on their debt is hitting levels not seen since the financial crisis, and it’s not just a problem for bondholders.

So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services. Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world’s defaults this year, 37 are of companies based in the U.S.

Meanwhile, coal producer Peabody Energy (BTU) and surfwear seller Pacific Sunwear (PSUN) this week filed plans for bankruptcy protection. Shares of Peabody have dropped 97% over the past year to $2 a share and Pacific Sunwear stock is off 98% to 4 cents a share.

A lot of big companies in this country have fallen on hard times, and it looks like bankruptcy attorneys are going to be absolutely swamped with work for the foreseeable future.

So why are stock prices soaring right now?  After all, it doesn’t seem to make any sense whatsoever.

And it isn’t just a few bad apples that we are talking about.  All across the spectrum, corporate revenues and corporate earnings are down.  At this point, earnings for companies on the S&P 500 have plunged a total of 18.5 percent from their peak in late 2014, and it is being projected that corporate earnings overall will be down 8.5 percent for the first quarter of 2016 compared to one year ago.

As earnings decline, a lot of big companies are getting into trouble with debt, and we have already seen a very large number of corporate debt downgrades.  In recent interviews, I have been bringing up the fact that the average rating on U.S. corporate debt has now fallen to “BB”, which is already lower than it was at any point during the last financial crisis.

A lot of people don’t seem to believe me when I share that fact, but it is absolutely true.

One of the big reasons why corporate debt is being downgraded is because a lot of these big companies have been going into enormous amounts of debt in order to buy back their own stock.  The following comes from Wolf Richter

Downgrades ascribed to “shareholder compensation,” as Moody’s calls share buybacks and dividends, have been soaring, according to John Lonski, Chief Economist at Moody’s Capital Markets Research. The moving 12-month sum of Moody’s credit rating downgrades of US companies, jumped from 32 in March 2015, to 48 in December 2015, and to 61 in March 2016, nearly doubling within a year.

The last time the number of downgrades attributed to financial engineering reached 61 was in early 2007. It would hit its peak of 79 in mid- 2007, a few months before the beginning of the Great Recession in Q4 2007. At the time, stocks were on the verge of commencing their epic crash.

When corporations go into the market and buy back their own stock, they are slowly cannibalizing themselves.  But we have seen these stock buybacks soar to record levels for a couple of reasons.  Number one, big investors want to see stock prices go up, and so big investors tend to really like these stock buybacks and will generally support corporate executives that wish to engage in doing this.  Number two, if you are a greedy corporate executive that is heavily compensated by stock options, you very much want to see the stock price go up as well.

So the name of the game is greed, and stock buybacks have been fueling much of the rise in U.S. stock prices that we have been seeing recently.

However, the truth is that nothing in the financial world lasts forever, and this irrational bubble will ultimately come to an end as well.

Earlier today, I am across an article that included a comment from Michael Hartnett of Bank of America Merrill Lynch.  He believes that there are a lot of parallels between what is happening today and the period of time that immediately preceded the bursting of the dotcom bubble

Back then, as could be the case today, a bull market & a US-led economic recovery was rudely interrupted by a crisis in Emerging Markets. The crisis threatened to hurt Main Street via Wall Street (the Nasdaq fell 33% between Jul-Oct 1998, when [Long-Term Capital Management] went under). Policy makers panicked and monetary policy was eased (with hindsight unnecessarily). Fresh liquidity combined with apocalyptic investor sentiment very quickly morphed into a violent but narrow equity bull market/bubble in 1998/99, one which ultimately took valuations & interest rates sharply higher to levels that eventually caused a “pop”.

Like Hartnett, I definitely believe that a major “pop” is on the way, although I would like for it to be delayed for as long as possible.

Someday we will look back on these times with utter amazement.  It has been absolutely incredible how the financial markets have been able to defy economic reality for so long.

But they can’t do it forever, and according to a brand new CNN survey Americans are becoming increasingly pessimistic about where the real economy is heading…

In a new CNNMoney/E*Trade survey of Americans who have at least $10,000 in an online trading account, over half (52%) gave the U.S. economy as a “C” grade. Another 15% rated the economy a “D” or “F.”

This gloom persists despite the fact that the stock market is on the upswing again. The Dow topped 18,000 Monday for the first time since July 2015.

If some Americans think that the U.S. economy deserves a “D” or an “F” grade right now, just wait until they see what is in our immediate future.

Personally, I give our economy an “A” for being able to maintain our unsustainable debt-fueled standard of living for as long as it has.  Somehow we have managed to consume far more than we produce for decades, and the largest debt bubble in the history of the planet just keeps getting bigger and bigger and bigger.

Of course we are very much living on borrowed time at this point, but I truly hope that the bubble economy can keep going for at least a little while longer, because nobody should want to see what is coming afterwards.

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

 
  • ali

    Can you paint a picture of what is coming afterwards? A 2008 type recession or a complete breakdown of system, with global wars and anarchy everywhere.

    I believe it will be a small recession and then debt ridden life will continue as usual.

    • JF

      Boy are you living in a dream world!

    • Mike Smithy

      I suspect that the days of the USD being the world reserve currency are numbered. The Shanghai Gold Exchange (SGE) will officially open for business tomorrow, and it will be a global game changer. The Chinese have been quietly hoarding massive amounts gold for several years now at rock bottom prices thanks to western central banksters. Look for a gold backed Yuan to challenge the USD as the global standard. We are already hearing rumors that Saudi Arabia will likely de-peg from the USD and peg oil to a gold backed Yuan by the end of the year.

      As an additional bonus, the removal of the gold price suppression and manipulation by the west, will likely lead to a wholesale dumping of U.S. Treasury Bonds around the globe.

      • K2

        If what you say doesnt happen, then what?

        • Rorschach

          K2 you are the same poster who couldn’t see beyond subprime as being one of the factors of that led up to 2008. I don’t see you understanding why this time is no different.

          • Mike Smithy

            Did you happen to read the article posted on Zero Hedge over the weekend that discusses an alleged threat to the USA pursuant to 9-11? I find the timing of this story highly suspicious. Here we are 15 years after the fact and we are discussing the culpability of the Saudi government behind the attack. I believe that the real reason behind this story is to send the Saudi government a warning that if they de-peg oil from the USD and sell US Treasuries, there will be consequences.

          • Rorschach

            Did you see the White House and the president threaten to veto it as well? Now we are hearing that Seed money for Al-Qaeda came from Saudi Arabia. Something very interesting is happening.

          • Mike Smithy

            Give me you opinion and help me decipher the tea leaves.

          • gfmucci

            We have two types of devout Muslims that follow Islamic doctrine faithfully: The impulsive, like those we call “radicals”, and the very patient, like Saudi Arabia. The very patient have the same objective as the radicals. The major differences are their methods. The Saudi’s are more secretive and behind the scenes, sort of like an Islamic version of George Soros. The Saudis contribute billions to US Universities that disguise radical Islamic indoctrination and subversion as “Middle Eastern Studies.” The Saudis also contribute both doctrinal and financial support to Islamic groups we call “radical”, but whose objectives are to implement Sharia, the Caliphate, and the run-of-the-mill Islamic intolerance and jihad (like 9-11). But that 100% intolerant Islamic nation makes every attempt to remain in the background shadows.

          • K2

            Try me.

      • Lennie Pike

        You hit the nail on the head – that could not have been said better.!

        Willie Sutton would have put it: “because that’s where the good cheap workers, the factories, and the huge army are.”

        And the main prerequisite – criminal thugs are in complete control of an unarmed people.

    • Bill G Wilminton NC

      You must be smokin some good sh*t……….

    • Horiboyable .

      I hope we dont go full Mad Max because there are many of us that are aware of what is going on and will be ready to take action when necessary. That time will be when folks really feel the pain and end up on the streets which has already begun in Europe.
      I hope we dont go full Mad Max because there are many of us that are aware of what is going on and will be ready to take action when necessary. That time will be when folks really feel the pain and end up on the streets which has already begun in Europe.

      I hope we dont go full Mad Max because there are many of us that are aware of what is going on and will be ready to take action when necessary. That time will be when folks really feel the pain and end up on the streets which has already begun in Europe.

      I hope we dont go full Mad Max because there are many of us that are aware of what is going on and will be ready to take action when necessary. That time will be when folks really feel the pain and end up on the streets which has already begun in Europe.

      I hope we dont go full Mad Max because there are many of us that are aware of what is going on and will be ready to take action when necessary. That time will be when folks really feel the pain and end up on the streets which has already begun in Europe.

  • Rob Andover

    All I know as an adult of average intelligence is that the levels of debt the US is swamped by can not be sustained indefinitely. What happens when the bubble pops I don’t know but I’d hazard to guess it won’t be pleasant…..

    • Bob332

      NOR can the debt be paid. We’re OFFICIALY over the cliff in free fall!

    • Creepy Pedro

      Agenda 21 will reset the debt. It was planned decades ago that way. Inflate, then world war as a tool.

      • jsmith

        Well Creepy, who are we going to go to war against? China? Russia? Our neocons of course seem to think that is an option, but even in their cleverness to maintain the military industrial complex going, they realize that this would mean nuclear war with those nations, and so far they have been prodding and testing those nations to the max. The recent buzzing of an American destroyer by Russian fighter bombers has been a “subtle” warning, and of course the Chinese have been warning us in the China seas. All know is that we don’t attack nations that have nukes, so our termites in power will stir up further trouble in the Middle East. But even there the Russians are outmaneuvering us, and public opinion is turning against further forever wars.

        • Mike Smithy

          Putin knows that President Zero is gutless and he knows that the American people are war weary. He also knows that President Zero has destroyed the military capacity and readiness to engage an enemy. The provocations that you witnessing are designed to embarrass President Zero.

          • Orac4Prez

            Obama is definitely not President Zero. Zero implies nothing has happened, and nothing has changed. Last time I looked the debt had managed to creep up (probably only doubled during his terms in office), the military leadership has been gutted by replacing experienced leaders and social cohesion has been dissolved. By any measure that is change. He has realigned American values and strategic alliances and bypassed democracy by he use of executive orders. Definitely not a Zero.

          • onepocketHarold Shult

            I agree with the Zero name but it relates to the number of things he has done for the American people, or the number of things he has done against terrorism

          • Padraigin Eagle

            Yes we can: Thank you satan

            Zero in Smithy’s context means added no value whatsoever, all indicators flat lining, quite similar to the way Michael enjoys his Obummer, flat lying in The Dark House.

      • Steeve Girard

        Not sure… the dollar is tied to the energy sector. There will be angry Saudis.

  • Davis C

    A large percentage of the bankruptcies are tied to the massive drop in oil prices.

    • Joltin Joe

      So they didn’t plan well or hedge? Sucks to be them

    • Steeve Girard

      It was supposed to end with the interest hikes that several countries took, but if companies are going bankrupt, their demand for energy will be lower. Low demand = cheap prices.

  • MIchael in Chicago

    Well the Fed can no longer bluff about raising rates anymore. The markets seem to know that so the can will continue to be kicked. Meanwhile all I keep reading about is how the “smart money” continues to leave the markets. Gold ETF’s keep getting bigger. The End might not be near till well after the elections but the ship continues to sink.

    • Mike Smithy

      You are right. The Fed is now caught in a liquidity trap of their own making. They can’t raise rates even if they wanted to. It would appear that all of those supposedly smart people with Ivy League degrees in economics are not as smart as they thought they were.

      • Creepy Pedro

        They are smart….they made all of you poor and themselves rich.

        • Lennie Pike

          And now they will either go cashless and have the world by the short hairs or between now and when that future certainty does take place, they will ally with a new partner in crime and begin sucking blood from a new host – the Chinese People – great workers (like Americans used to be) and China has a very large military for enforcement.

          Unbeknownst to most, for many centuries, certain Chinese have been members of the same satanic world gang that controls the present day western financial system.

          China is headquarters for most large multi-national corporations. Most ex U.S. manufacturing takes place there – yeah right – China is the enemy of the traitors who control the U.S..

        • REALIST

          Excellent, Pedro.

        • alan

          LOL, sad but true.

        • Bill G Wilminton NC

          YUP….gold star to you.

    • Joltin Joe

      Gold ETF, that is the stupidest thing you could invest in! If you want to buy gold you better physically hold it, these ETF will never give you actual gold.

      • Creepy Pedro

        Take the profits from ETF’s and buy physical. Win/Win.

        • Joltin Joe

          Go for it, seems like a gamble to me

          • Creepy Pedro

            Nah..gold and silver jr miners are up BIG so far…. im up 10% again today.

          • Joltin Joe

            paper profits can vanish in a heartbeat, best of luck.

    • Steeve Girard

      Not until 2030… energy will end the industrial world.

  • MIchael in Chicago

    There was a headline in the local news last week about a mileage tax being proposed. A fee to drive your car.

    • Mike Smithy

      Interesting. As municipalities and states become ever more insolvent, it is plausible that they will mandate a black box be issued to every registered vehicle. These black boxes will track your mileage and travel habits pursuant to imposing an additional tax for motorists.

      • themacabre

        Wait until the government taxes you when you don’t drive enough…maybe they’ll try and get people smoking again to raise revenue.

      • REALIST

        Globalist Warming

        • Orac4Prez

          Yes, that warm fuzzy feeling the politicians get when they feel another tax coming on.

    • howmchbscnutak

      It is all about controlling the masses…Govco has taken over healthcare passed legislation to assume control of the food supply. The only things left are our finances and the ability to defend ourselves…..

    • Orac4Prez

      If you drive in London and some other cities you pay extra for the miles in the cities. Its been discussed in Australia as a way of apportioning registration fees collected for long haul operators and a lot of people complain that they should get discounts on registration if they don’t drive. So governments are looking at this option. Of course the same governments, think we should pay more and want to add a time component, which means that if you are stuck in traffic, you pay extra (to discourage you from utilising the road (services) during peak hour so it becomes a congestion tax.

  • Bob332

    10, 9, 8……………..America you have a problem !

    • Steeve Girard

      And this time Gene Kranz will not be there to save your bacon.

  • Orac4Prez

    Japan has a larger debt than the US, but it has one benefit. Most of the debt is owned by Japan. I doubt that the US crash will happen until there is a true crisis that requires the US to act (eg major natural disaster on the homefront) and countries like China think they can manipulate circumstances to take full advantage of the situation for their gain. On a small scale that might mean changing debt to be denominated in Chinese Yuan (manipulated), backing of aid to actual physical assets and even more access to Chinese goods and freedom to make Chinese goods in the US, using Chinese workers (paid in China) and freedom from US taxes and regulations (eg financial and EPA restrictions)

    • df NJ

      Plus the benefit from all the HUGE base rents we give them.

    • REALIST

      Japan has something more beneficial and priceless: One people, One language, One culture, One “religion”. One Race. That is what will keep them going as it does after every horrific natural disaster. No riots. No stealing. No gun shots. One huge natural family comes together…..as it should be.

      Just wait till California gets it’s 7.9 quake. Total race riots, killings, rapes, fires…..total chaos where it will not recover. Those things will NEVER happen in Japan. Where would you rather invest? Japan or the America mongrel nation?

      • Mark

        You are 100% right and totally agree.

      • Steeve Girard

        However, everything you enumerated is the official report. Reality is more complicated.

      • Orac4Prez

        I wouldn’t want to invest in either place at the moment. But I think l the US still has a chance to become a “family”. I think things would improve if the culture of entitlement is removed, especially for big business and vested interests. Think of Apple (and they are by no means alone) They have held tons of profits overseas (because they can) and pay virtually no taxes, yet they expect everyone else to pick up the tab for roads, internet links, etc without paying anything. They shuffle money around for the best tax deals and don’t even pay the low paid overseas workers particularly well by the Asian standards. A lot of the intellectual skills have been developed at universities with government (hence taxpayer money). A fair tax return would do a lot.

    • Steeve Girard

      The EPA did not react much to the presence of heavy metals in the packaging and paints from China and India.

  • Horiboyable .

    Wait until you see sovereign nations defaulting. Hello sky high interest rates and liquidity will dry up over night.

  • billtheguy

    I agree with Mike Smithy. China despises the USA. What better way to cripple the USA with a gold backed Yuan for the world currency? Russia would surely get on that bandwagon with China. The USA would be Germany after WWI.

    • df NJ

      They sure like taking our dollars for their products!

      • Mike Smithy

        For the Chi-Coms, manufacturing cheap plastic crap for the USSA has always been a means to an end. Nothing more and nothing less. Seriously. There aspirations have always had one goal in mind; to replace the USSA as the predominant global superpower. Russia tried to do it militarily and failed. However, China took a different approach.

  • Lazarovic

    Corporate profits are down because consumption is down. Consumption is down because wages are stagnant. Wages are stagnant because corporations won’t pay good wages, they want profits. Rinse and repeat until economy collapses.

    • mtntrek3

      Precisely.

      • df NJ

        There are two parts to the equation. Wages and the cost of goods-and-services. What you pay in taxes is irrelevant. What does matter is the purchasing power of your take home pay. No purchasing power means no customers. No customers means no jobs. No jobs means low wages.

        • mtntrek3

          Yeah, it goes back to devaluation of the dollar. I guess another way to say that is inflation. The dollar doesn’t buy much anymore. The dollar bought about six times or more back in ’68 than it does now.

    • Rorschach

      Corporate profits are also down because they keep investing in buy-back schemes and adding it to their balance sheet. They use their profits and their gross income to finance these buybacks.

      • df NJ

        We need to change the tax laws back to the ways they were in the 90s so investing in this country becomes meaningful again.

        • Rorschach

          We also need the Glass-Steagal act reinstated and the Gramm–Leach–Bliley Act repealed.

          • Lennie Pike

            What’s needed are Good Guys willing to fight the bad guys. There are not that many Good Guys left, and even fewer with the balls to fight. One just got murdered by thugs a couple of months ago and no one cares. Without Good Guys fighting evil what you soon wind up with is a banana republic with a mafia of thugs completely in control.

          • REALIST

            Too late. They took over in 1913.

          • Lennie Pike

            True, but they had to turn up the heat incrementally so as not to be detected as the evil destroyers of everything good that they are. I believe if Americans had in 1913 known what the end result of their fiat money scam would be 100 years later, that there were plenty of patriotic Americans at that time that would have prevented these criminals from even beginning their assault on the U.S. and the world.

            Now they have fully implemented their plan of controlling the entire world by dumbing down Americans, controlling their government and military, and destroying their morality so that they don’t know even what to do, or even have the ability to do it if they did know.

            100% enforcement of the U.S. Constitution by the U.S. Military is what is needed now – after returning to the intended meaning of the 14th Amendment as it pertains to children of illegal aliens born in the U.S..

            The entire world can not come here – if they live in totalitarian dictatorships they need to put up a fight of their own in their own countries.

          • Lennie Pike

            I meant controlling the entire world except for Russia – let’s see what they can do about that little problem – and an armed to the teeth American population.

          • Bill G Wilminton NC

            Yes we will miss Antonin Scalia badly.

          • Lennie Pike

            Make that two Good Guys murdered – one shot in the back while unarmed and non-threatening.

          • Bill G Wilminton NC

            who was that……

          • Lennie Pike

            Robert ‘Lavoy’ Finicum – taking the U.S. Constitution literally as everyone should.

          • SunnyFlaSnotress

            Scalia died a natural death

          • Lennie Pike

            Is that a fact? It may be but it may not be. As you have personally experienced and been embarrassed by many times, I never make statements that can’t be 100% proven to be true because for one I do not like misleading others with untrue info that could cause them harm, and secondly I would not want to be widely known as an idiot.

          • Padraigin Eagle

            Scalia is still alive. But then that’s a story beyond your pale.

          • SunnyFlaSnotress

            buh bye Scalia

          • SunnyFlaSnotress

            Hillary will save us 🙂
            Hillary 2016! 😀

        • Mike Smithy

          Are you referring to the 1890’s, a time before the Federal Reserve?

          • REALIST

            And GOLD was money.

            The most fantastic “increase” in wealth was from 1855 to 1910. Gold as money, no income tax, very small government.

            What does that tell you.,

        • Steeve Girard

          It will not work… the problem is not with ideas. The problem is how are we gonna keep the machines running, as they get old, break, and their energy source is dwindling?

      • larrythelogger

        I’m pretty sure most of them are not using profits nor gross income to buy back their own stocks. They are borrowing billions at near zero to buy their own stocks, taking the stocks they purchase off the market and creating a false demand or false price increase in their stocks. They’ve borrowed more than they can afford to pay back and the cheap loans are past due. That’s the reason so many are defaulting. In addition p/e’s (price per earnings) are at historic highs. P/E’s around 10-12 are what they ought to be. P/E’s above 15 is a bubble. P/E’s now are above 25. The few times in history P/E’s were that high was right before market crashes, HUGE market crashes.

        • Rorschach

          Various companies do it through various methods but the end result is that they attempt to appease their shareholders and keep stock prices at all time highs. Your right that low interest rate or favorable rates create an environment for borrowing and indebtedness.

          Michael also covered it but you mentioned the P/E and that’s a good indicator of where the economy is headed. Corporate revenues are also declining and that’s also a red flag too.

        • Orac4Prez

          Here is a pretty thought. They have bail ins for banks (Cyprus and Austria). How long before contractors and workers are “bailed in” to their employers companies when they go bankrupt! I heard it mentioned as an option for bankruptcies in Europe (by a prominent receiver – for insolvencies)

        • onepocketHarold Shult

          Thank you and it doesn’t take an enormous brain power to see the reasons and know what you say is true Explains much

    • Mr. Cipher

      they want OBSCENE profits. There I fixed it for you

    • Joltin Joe

      Oh well, these companies are killing the golden goose (middle class) it will come back and bite them as we can’t afford to buy their products. Boo hoo

    • Scott Comin

      But I thought it was the socialists fault. YES THE SOCIALISTS ARE THE CORPORATIONS. THE PEOPLE ARE THE TRUE CAPITALISTS. THEY DONT GET BAILED OUT WHEN THEY MESS UP!!!!!!

    • Steeve Girard

      Add the lower EROEI over time with that.

    • Livefree

      “I believe that banking institutions are more dangerous to our liberties than standing armies,” Jefferson wrote. ” If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

      “ The issuing power of currency shall be taken from the banks and restored to the people, to whom it properly belongs.”

      Thomas Jefferson

      • livefree1200cc

        Amen to that – its amazing how few people know that a foreign owned banking cabal has been running our entire monetary system for the last 100 years. And even fewer realize that it is our congress that was supposed to be in charge of that, not an anonymous group of foreigners.

  • df NJ

    9 out of 10 new businesses fail.

  • Mr. Cipher

    They want OBSCENE profits.

  • CharlesH

    Everyone knows the Fed is doing it’s best to keep this whole charade going for as long as they can – specifically until after November’s election. However, I personally believe they’re losing their grip now and something so big and unsettling will happen (either in the U.S. or someplace else) that will shake the markets to their very core and the legs will come off this entire thing. Enjoy the ‘good days’ while we still have them.

    • Rorschach

      Yep all it takes is one Black Swan event.

    • Steeve Girard

      As long they have the energy, they can pull anything out from their hats. Wait around 2030 when the energy will be in free fall, due to loss of cheap oil, they will sing a new tune.

  • Jazzisamoron

    Where’s Jazz with his analysis on these statistics? Sigh. At least the passengers of the Titanic had violinist’s as they went down…I need a good laugh.

  • seekless

    The business news is a waste to watch and rarely reports of the stocks that get taken off the exchange and moved to the pink sheets. Sports Chalet in CA. is also closing all of its stores, they were a leader for many years.

  • seekless

    Many bio tech stocks have started to crater too.
    But many pundits still preach gold and silver and they are still duds in the wind.

  • What is coming will truly be “HELL ON EARTH”
    Satan will be in control of it all and he will use his short time in charge to destroy everything and everyone. Everyone except true born again Christians. It will be so bad that cannibalism will become the new “norm”. Everyday life will be horrific and every day will bring new and worse horrors. The whole World will collapse, but America will fall the furthest to a new world low in debauchery and sin that the world has never seen before. FYI It’s time to get right with God ‘while you still can’.

    • Judging by what God has told me, and by what is written in the Bible, I agree that there will be no easy exits. Only the miraculous power of God will carry any of us through the days ahead, and it will be a time of trouble like no other. However, God has everything under control, and everything will happen right on schedule. Any power that Satan does exert will only result in the perfecting of the saints. Remember that what we call the end of the world is in reality the birth of the world to come, and of great joy to follow. It’s God’s plan, and it’s all in God’s hands.

      • Gay Veteran

        spoke with god, eh

    • Steeve Girard

      “Wiener” cultist thread… enter comment here.

      • Bill G Wilminton NC

        HERE IS A COMMENT….There is a new post board IN HELL take your Big Wiener Gaia Wyrd Wicca CULT posts where they belong….

  • Mondobeyondo

    It’s not the jump or the fall which will kill you. It’s the impact with the ground…. Having said that, assume the crash position and brace for impact. We’re headed for hard times, baby…

    • REALIST

      Why? As long as the (Privately Owned) Central Banks of the World can create credit (it is not money), they can create as much as they want. If you are issued enough credit, where you can pay your current debt, then this can go on and on. The only ones to suffer are the fools (poor, elderly, trusting, voters) on fixed incomes or can’t raise their own wages. But, those are the fools who trust and vote and expect others to “take care of them”.

      • HeyAHuman

        You’re proof that people have been conditioned to have faith that these guys really are too big to fall, and this type of manipulation can go on forever.

  • Joltin Joe

    and by fate you mean the elder bush and his crony gang right? 🙂

  • George Washington

    None of you people get it, its not about profits, its about control, hyper inflate, deflate, print money, buy until you own everything. Then kill the people because there are too many for the rulers to enjoy as slaves. Its not about a healthy economy, its about getting to an unreal economy. Where money is digital and there can be no runs on a digital bank which uses digital currency. Their aim is destroy our world and put us in cattle housing with a chip they turn on or off at their pleasure.

    • REALIST

      I get it. I know it. This started around 1800, give or take 20 years. Organizations, Rulers, Religions, States, have wanted World Control since day 1.

      Now with the internet, the data and info backing this is evident. BUT, those of us who “know” are not enough. We don’t have the numbers, the printing presses, or a nation-state to group in or fight back from. Our “enemies” do.

      The Primary Objective is the 2nd. Amendment and disarm us. Then the road to hell is smooth and easy for them.

      My personal thoughts are: It is too late. Unless “they” slip up and give enough of us the opportunity to change things, the future is already set. Too many dumb people will either vote them into power, or a coming collapse will give them military control…….and people just like us will be the first rounded up and killed.

      It is why I favor Trump (not a true conservative) over Cruz (a more true conservative) since we need ATTITUDE and a FIGHTING spirit. We have been too nice, too long, and we need to be willing to say snotty things, insulting things……just like Trump is willing to do…..and be willing to use the 300 million guns in America.

      We are not going to get out of this by voting.

      • Lennie Pike

        You meant killed and then rounded up.

      • George Washington

        You shouldnt favor anyone, you should no its all a circus, smoke and mirrors.

        • William Grave

          “…address the long train of abuses with force.” Lol, your stupidity knows no bounds…but I would certainly pay big bucks for a front seat to watching you get mangled while taking on an Apache with a shotgun….

          • George Washington

            you would have paid to see what i did with your mom, my 12 inches splayed her like soft earth

          • William Grave

            Spoken like a true needledick virgin. Keep your fantasies up…maybe one day you can lay that fat pig sister of yours.

          • George Washington

            Your mom loves being splayed

  • Black Swan

    Mainstream economic reality: All encomposing fraud, deception, deceit, hypocrasy and treachery justified for corporate profits.

  • Rebecca Blanton

    All it takes for a bubble to pop is a gentle touch. I foresee something happening in this the US to be that gentle touch. This won’t last for too much longer as anything can change our unrealistic life styles in a twinkle of an eye as 911 did in one day 😉

    • Scott Comin

      Oh I hope your right. I think it will last till my son’s grandson has passed. Let’s just get er done already.

  • Cal

    When the crash finally commences not to worry, the wealthy class chock full of insider information has already exited the market en masse. Currently they either built bunkers or have emigrated to New Zealand (watch those earthquakes). The banks will bail themselves out by seizing deposits, this has already begun with negative interest rates, the bank charges you money for the “safekeeping” of your money. What a novel thought? As a side note…the banks use a previously non-existent monetary guise of “Paper Statement Fee” to charge you. The satanic driven FED and Federal Government, not related, have achieved their goals and succeeded beyond their wildest imaginations in reducing the greatest nation ever to a pile of horse dung coated with green flies. When the Lord appears you better have some pretty solid rocks in New Zealand to hide from HIM (Revelation 6:16).

  • Scott Comin

    I look forward to to the breakdown of individualism and the triumph of communities. farming, local economies, self sustaining communities, unfortunately I think it will be serfdom and the new world order instead. I keep hoping a collapse will mean going back to first century christianity when love and community came first. When God came first. I suspect I am delusional however, and the worst is yet to come, but what could be worse than 40 more years of working for wealthy narcissists. coming home exhausted. Living paycheck to paycheck with no hope for a better future. Sounds like all that is left is no food no water, no safety. New world order serfdom can’t be much different than what I am already living; just a quicker death…..Oh I am just being negative. WORK HARD AND THEIR IS NOTHING YOU CANT DO. OPPORTUNITY IS EVERYWHERE. IM JUST LAZY AND A WHINER. IT COULD BE WORSE. I COULD LIVE IN RUSSIA, CHINA, BRAZIL. THINK POSITIVE!

    • REALIST

      Do the opposite. Go Galt. Do you know what that means? IT means STOP WORKING. Read the book ATLAS SHRUGGED. It is written about what you have just wrote.

      Down size and stop feeding the beast.

      • Maddog

        Went Galt 15 years ago. Best move ever. I no longer participate in general society.

      • Creepy Pedro

        Went galt 3 years ago…..took awhile to get used to it!

  • alan

    They simply need to refi their current debt and get better terms. Everything will be fine. Once Hitlery rises to power you won’t be worried about the market or banks any more.

  • DigitalThumb

    This is insane, anyone can see the end is near.

  • Steeve Girard

    By the Ancestors! That could pressure the energy sector again with lower demand, thus causing oil to resume it’s fall.

    • Bill G Wilminton NC

      Yes the wicca wyrd ” wiener king ” of gaia has spoken…. now get around the fire chant oooooooooom yaaaaaaaaah oooooooooh ……………

      • Steeve Girard

        Look over there, it’s Abraham.. you need to knee down in front of him and put your hands in front and play with your/his “God”.

        • Bill G Wilminton NC

          Oh yes the great wicca wyrd ” WIENER KING ” of GOD GAIA has spoken…….

          • Steeve Girard

            I am not worshipping “wieners”, you are.

          • Bill G Wilminton NC

            Keep worshipping your GAIA WIENER GOD ooooooooooooom oooooooooooooooooh oooooooooooooom

          • Steeve Girard

            Yea, yea, go beat your wife as your “prophet” commands it.

          • Bill G Wilminton NC

            Go beat your BIG WIENER mother earth GOD GAIA ooooooom oooooooh ooooooom

          • Steeve Girard

            You need a vasectomy.

          • Bill G Wilminton NC

            big big BIG WIENER GAIA GOD needs more chanting or she might get angry at you oooooooom ooooooooh ooooooooom

          • Steeve Girard

            If you like singing, start singing your religion’s anthem: Every Sperm is Sacred , and watch the video on Newgrounds website.

          • Bill G Wilminton NC

            Start chanting to Gaia Wicca Wyrd quickly or the mother earth may just swallow you up…..mother earth does not like being joked at….ooooom oooooooh ooooom

          • Steeve Girard

            I hope the other commentators and Michael sees how inarticulate you are.

          • Bill G Wilminton NC

            Michael and other commentators have been looking at your logo and your derogatory comments about other peoples beliefs in the God of Abraham Isaac and Jacob for many months.

            Other commentators I believe are as fed up with your ” abrahamic wiener ” comments as I…..take your logo your wyrd wicca gaia demonic message and post it in hell……you are very impressed by YOURSELF I think others are not….this is an open post for all to see and comment so we shall see what the others on this blog feel.

          • ALWAYSTOMORROW

            Yes. I can see how much more of a mature, civilized and cultured blog this is when the so called “trolls” stay away.

          • Bill G Wilminton NC

            You sound like Hillary Clinton….

  • Willard Ferch

    I believe your video is right on. Also, I haven’t believed in the pre-trib rapture for many years; there’s too much against that idea. In 2011, while O was talking with Netanyau, through the gift of discerning of spirits, the Lord showed me the demonic presence in O. A year later a woman called a talk show with a very similar experience. That’s when I realized that O would dump Israel. Later he said that we were no longer a Christian nation, We must accept the fact that anything he does furthers Satan’s agenda. We are engaged in a spiritual warfare of great consequences.
    We need to be continually filled with the Holy Spirit. Nowhere does the Bible say Jesus stopped baptizing believers with/in the Holy Spirit. I pray that non-full gospel churches soon realize this. God Bless you & your ministry…. Fiddlin

  • Jazz

    JNK is about to go back over $35. This must mean we are back in the clear. Stocks hit another new high. I called it folks 😉

  • Keepcalm

    It’s interesting to see that while many speculated that the ultimate collapse of the financial system would come last year in September, around 29 Elul, this doesn’t ‘appear’ to have happened. I keep wondering when it will happen. But perhaps it’s happening already. Perhaps it’s happening so imperceptibly that the mainstream media haven’t really noticed – or they know that it’s happening, and have been instructed not to say anything, in order to keep us useless eaters in the dark. Perhaps it’s a long, drawn-out, slow death, which few notice, apart from those who are really watching for the signs of the times, rather than a spectacular explosion. Maybe this entire Shmita year has already witnessed a collapse, but while it has been happening before our noses, it has been such a continual, slow process, that few have realised it. We are so conditioned to sensational news from the MSM that slow processes seem boring and uninteresting, so few notice them, even when they’re right in front of us. Just wondering…

    • jox

      I agree with you. We have underestimated the resilience of the system: they can print money, rescue banks, create huge bubbles of public debt, so on. Now I see it as a tectonic process. Tension can grow and grow, and nobody notice, and then one day suddenly you have an earthquake. I think we are withnesing not the real crisis, but the prelude.

      • Keepcalm

        Thanks for your reply, Jox. I agree. See all the build up of seismic activity we’re witnessing at the moment, or Yellowstone, for example… It seems the natural, the economic, as well as the social, with the spiritual behind everything, are in tandem…

  • Lennie Pike

    I agree – red flags all over the place, and I stand corrected – when enough circumstantial evidence exists, the resulting assumption should be taken as fact as in the Scalia case. Nothing can be proven absolutely.

  • Leighton Williams

    The painful reality is that the destruction of America as a sovereign republic is at the top of the list for TPTB. It is a key part to their plan of the NWO and complete enslavement of Planet Earth. Now, global economic chaos is erupting all across the planet. Major banks are offering negative interest rates…that is NOT a good thing at all.

    These people have repeatedly “kicked the can down the road for the last several years” since they know the global financial system is teetering on collapse. The system came within 48 hours of total collapse in 2008..and here we are.
    Make no mistake, once the global financial collapse occurs…it will be the beginning of the end..even as Michael Snyder’s book is so titled.

  • duckified

    “And I saw one of his heads (financial) as it were wounded to death; and his deadly wound was healed: and all the world wondered after the beast.” Revelation 13:3. There will be a worldwide financial collapse. A man will step in and stop the world’s seeming demise just when all seems hopeless and everyone will wonder after him and be amazed. They will worship this man. This man is the beast of Bible prophesy. Get right with God. Now.

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