Rapture verdict ad 1
The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

Archives

Michael and Meranda's New Show

Michael & Meranda’s New Show

Food for liberty
Economic Collapse DVD The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Thumbs Down - Public Domain
The extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent.  For those that are not familiar with “junk bonds”, please don’t get put off by the name.  They aren’t really “junk”.  They simply have a higher risk and thus a higher return than other bonds of the same type.  And yesterday, I explained why I watch them so closely.  If stocks are going to crash, you would expect to see a junk bond crash first.  This happened in 2008, and it is happening again right now.  On Monday, a high yield bond ETF known as JNK crashed through the psychologically important 35.00 barrier for the very first time since the last financial crisis.  On Tuesday, high yield bonds had their worst day in three months, and JNK plummeted all the way down to 34.44.  When I saw this I was absolutely stunned.  This is precisely the kind of junk bond crash that I have been anticipating that we would soon witness.

Normally, stocks and junk bonds track one another very closely, but just like before the 2008 crash, they have become decoupled in recent months.  Anyone that even has an elementary understanding of the financial world knows that this cannot continue indefinitely.  And when they start converging once again, the movement could be quite violent.

When I chose to use the word “carnage” to open this article, I was not exaggerating what is going on in the junk bond market one bit.  On Tuesday evening, Jeffrey Gundlach used the exact same word to describe what is happening…

Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, said on a webcast on Tuesday that the junk bond market has come under severe selling pressure ahead of the Federal Reserve’s policy meeting next week.

We are looking at real carnage in the junk bond market,” Gundlach said. Gundlach also said it was too early to buy high-yield junk bonds and energy debt securities. “I don’t like things when they go down every single day.”

Sometimes a chart can be extremely helpful in understanding what is going on.  The following chart was posted by Zero Hedge on Tuesday, and it shows that yields on the riskiest junk bonds are heading into the stratosphere…

High Yield Debt - from Zero Hedge

And for those that are not familiar, it is important to note that when yields go up, bond prices go down.  So the chart above is what a “crash” looks like.

Another “leading indicator” that I watch is the behavior of Dow Transports.

Dow Transports started crashing before the Dow Jones Industrial Average did back in August, and now it is happening again

Dow Transports are in reverse. Down over 3% today, the biggest drop since the Black Monday collapse, Trannies are now below the lows of the Bullard bounce from October 2014 and down a shocking 16% in 2015. This would be the first four-quarters-in-a-row drop in Transports since 1994 and the worst year since 2008…

In addition, we are also seeing trouble signs erupt at major financial institutions just like we did during the run up to the 2008 crash.  For example, I have been concerned about Morgan Stanley for quite a while, and on Tuesday we learned that they have just laid off more than a thousand workers

Struggling Morgan Stanley slashed 1,200 jobs around the world in recent days, a person familiar with the matter told CNNMoney.

The cuts were broad-based and eliminated 25% of the positions within the fixed income and commodities businesses, the person said. Those divisions are grappling with tumbling trading revenue and shrinking fees.

Morgan Stanley also eliminated about 730 back-office jobs like human-resources and IT positions.

Virtually all of the things that we would expect to see just prior to a 2008-style stock market crash are happening right now.

If just two or three leading indicators were flashing red, we could have a really good debate about what they might mean.

But the fact that virtually all of the numbers are screaming a warning at us should mean that the debate is over.  Anyone with an open mind should be able to very clearly see what is coming next.

Very quickly, let me give you just 10 signs that indicate that we are right on the precipice of a major recession and a very substantial financial downturn…

1. Global GDP growth has gone negative for the first time since 2009.

2. Corporate earnings growth has turned negative.

3. S&P 500 net profit margins are steeply declining.  According to Tony Sagami, “since 1973, there has been only one 60 bps decline in S&P 500 net profit margin that didn’t lead to a recession.”

4. In October, U.S. imports of goods declined by 6.6 percent on a year over year basis.

5. In October, U.S. exports of goods declined by 10.4 percent on a year over year basis.

6. U.S. manufacturing is contracting at the fastest pace that we have seen since the last recession.

7. Corporate debt defaults have risen to the highest level that we have seen since the last recession.

8. Credit card numbers that were recently released show that holiday sales have gone negative for the first time since the last recession.

9. The velocity of money in the United States has dropped to the lowest level ever recorded.

10. Of the 93 largest stock market indexes in the entire world, 47 of them (slightly more than half) have already plunged at least 10 percent year to date.

Just like in 2008, other global financial markets are imploding ahead of a U.S. collapse.

On Tuesday, the Dow Jones Industrial Average was down another 162 points, but we are still within 1000 points of the market peak that was set earlier this year.  We are still in far better shape than most of the rest of the world, but that will soon change.

I can’t think of a single leading indicator that is telling us that everything is going to be okay.  All of the numbers are pointing to major trouble ahead.  So I hope that you are being smart and doing what you can to get prepared while there is still time.

  • Steeve Girard

    Come on junk bonds whip the stock market enough to show that QE does not work.

  • Scott Comin

    Thanks for your great article. Much appreciated.

  • Tim

    So, what will be the catalyst? Maybe a Fed rate hike next week? The Fed is really in a difficult situation (of its own making). If they don’t raise the Fed Funds Rate (even a quarter of a percent) next week they risk losing whatever credibility they still have. If they do raise the Fed Funds Rate it could very well cause the first domino to fall. It’s a double-edged sword. But I have no sympathy for the Fed. It’s the foundation of the fraudulent monetary system that we have today.

    • Philosopher

      War.

      • http://www.coroflot.com/joelpeeters/portfolio Joel Peeters

        The most logical possibility and the most probable…

  • recovery

    You people need to stop worrying. The economy is doing fine and better than ever before. The Fed is going to raise interest rates and more people are back at work than ever before, making six figure salaries.

    Where is all this doom and gloom coming from? Seriously, the American Dream is alive and glowing brighter than ever before. Americans are making 6 figure salaries all over the country.

    The economy is doing great.

    • ferianto

      We are not pessimistic, we are being realistic

      • df NJ

        If you are not completely pessimistic, then just what exactly are you optimistic about?

        • merrileerj

          Jesus Christ is returning. Are you ready?

          • Bill G Wilminton NC

            He Is Coming Soon…………….

          • H. Skip Robinson

            Trumps not going to get elected. I’m assuming you were talking about Trump. If you want a sociopathic fascist mentality he’s certainly your guy though. He want’s to kill everybody and stop everyone form existing.

          • Bill G Wilminton NC

            The country is collapsing do you get it.
            The dems and repubs are two wings of the same bird and the bird is going into a wall at 100 mph.
            Trump is the only one saying what has to be said…..whether it be illegal aliens or muslims.
            And yes Jesus Christ is returning.

          • Plextt Plextt

            Before or after Santa arrives?

          • SunnyFlaSnotress

            No. Is it ok if I run out in the street naked when he arrives?

          • Priszilla

            He came last week. Was shot by police. He looked like an arab.

    • MaxRockatansky33

      On what drug are you on? I want it too, baaaaa!

    • afchief

      Let me guess? Your an 0bamabot?

    • J2ashes

      The drugs you are on must be really strong because all you see is good good good etc etc without end… It is true there are people still doing good and managing in the line; but in truth, the situation is getting from average, to bad, to worse and so on… America sells less to the world than it consumes, america develops more junk now than valuable products, there is now job discrimination in all the major cities, they would rather hire foreign workers than indeginous citizens and many workers in america today are lazy and incompetent and are capable of destroying industries which connects the economy, people now make less than ever before even if incomes do not decline but think of inflation and the standard of living has passed all limits in these places. So yes, we are very optimistic about the future and all is well. Hey, everything is vivid and there are rainbows everywhere yayyyyy. ([Sarcasm)].

      • J2ashes

        Do not get me wrong, but we all want good in america and in the world but right now, the situation is extremely awful. But I have hope and faith in god that in the end, everything will be all good.

        • df NJ

          Gee, I don’t know. It seems Satan is winning BIG right now. People don’t even understand what evil is so how will things ever change for the “good”.

          • Bill G Wilminton NC

            All In The Bible…………

          • GSOB

            And….
            Predestination does not necessarily presuppose that either its end or object exists; rather it causes to exist.
            Predestination orders that it should be.
            1 Peter 1:20, 21

          • Bill G Wilminton NC

            Christ existed before The Creation…..I dont believe in Predestination but God sees the beginning and the end as He is outside of time just like watching a parade the start and the finish at the same time.

          • GSOB

            The Bible teaches predestination but yet many believers as yourself, refuse to believe in it.
            This indicates that you are not on the same page as He.
            What is your problem with God choosing some to salvation and not others?
            God is not obligated to save anyone, is He?
            He would be ‘just’ even if He does not save anyone, wouldn’t He?

          • Bill G Wilminton NC

            GSOB…..have spent many hours on this topic. He does save us and WHY some are saved and some NOT I do not know. But I DO NOT believe that the correct term is pre-destination. No one is predestined to be a murderer or drug dealer but we all SIN.

          • GSOB

            You need to straighten out your argument and then spend more time in the Word.
            You need to come to terms with the sovereign God. He is not some old man waiting for sinners to come to Him. They won’t, I hope you understand.
            It is not of him who wills or him who runs but God, who shows mercy to whoever He wants.
            He hardens whom He wills also.
            MATTHEW 11:25-27
            JOHN 6:44
            ROMANS 9:21
            ACTS 11:18;13:48
            MARK 13:20
            EPHESIANS 1:11

          • Bill G Wilminton NC

            I know that I am saved and have been for over 20 years……sometimes I ask why me Father God ?

            I do not have the Mental/Biblical capacity to understand Predestination. I understand chosen and I understand that I still sin but I also feel the hurt when I fall….the hurt of His Stripes caused by me…. but then I think of King David and pick myself up. Thanks for the thoughts.

            So God Bless,
            Shalom

        • Uncle Scam

          God will till care of his those that practice His Words. satan’s time IS short, so this is what we are feeling right now. Evil, deception, greed, lust, sin.

          • df NJ

            Satan is about concentrating all power to a single authority so everyone else becomes a slave. Satan is all about slavery. Satan is the biggest bully in the room.

          • GSOB

            Luke 10:20

    • Malcolm Reynolds

      Never mind on my last.
      ** Satire account alert **

      • Always Tomorrow

        I never mind an ALL your comments,

        • Malcolm Reynolds

          I never mind an ALL your comments.

          That because you’re low info. With the intellectual goods you possess (or lack thereof), you may as well be reading Kanji.

          Have you missed me?
          As much as you miss those herpes outbreaks.

          • Mrs. Always T. Reynolds

            When you mentioned about the herpes that reminded me, my doctor said to let your mother know she will need to get tested again in 6 months.

        • Watchman

          Oh look at that Alwaystrolling returns under a fake name and account. Let’s see how fast his comment ends up and see how fast he gets a ban.

    • Watchman

      Lol Zazz’s sidekick recovery aka odfihs. Do you think anybody takes you seriously you stupid idiotic troll?

    • merrileerj

      Thank you Mr President.
      (do you really think you’re going to start a verbal war idiot?)

      • The GOOSE

        For your food stamps, or your Obama phone?

    • chriscas

      This message was brought to you by the Barack Obama Legacy Project on behalf of the DNC. Not affiliated with any campaign or committee, etc. etc. etc. Josh Earnest has a kindred spirit here!

    • sal

      i think i have to agree with you…….

      “Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008″

      Guess what happenned the Last Time you suggested the economy was crashing. ???
      Nothing.

      • The GOOSE

        Everything comes down to basic math. The numbers say we in a mess of biblical size that CANNOT be fix. Nobody knows the exact day when the man behind the curtains can’t do anymore magic, but it’s VERY soon.

    • Richard O. Mann

      I have a six figure income. I just have to ad a few zeros to the front end, but hey, what ever works, eh?

      • CASTIEL

        :) well we can put 10 zeros in that way and we are milionaires

    • none

      Or if a woman where to become a prostitute. And her daughter where to, then work as a mother daughter team,,,,,

      • SunnyFlaSnotress

        Or if a man where to sell his posterior orifice as a gigolo. And his son where from hades

    • RedSky

      For the upper 5% of Americans perhaps.

    • H. Skip Robinson

      You are so wrong. Stop listening to the investment advisers and main stream media talking heads. Only a very small percentage of our population makes 6 figures. The average salary is $57,000 but that is not the weighted average salary which is “weigh” less. I’m guessing in the low $30,000s but it’s not published. That’s why we have 100,000,000 people living at or near poverty and 45 million on food stamps. International trade is way down and I think one of the really good indicators of how bad the slow down really is. Believing that by simply lowering interest rates in an economy that is so highly taxed and regulated, economic activity will increase is obviously incorrect to any rational economist. Most of them have been saying this for a while now. I even saw Stiglitz tell his concerns recently on national TV. Many many different things would have to be done to stimulate this economy and most are just not politically viable under the current hierarchy. It not just the U.S. either so the Keynesian strategy is not working but in a very few places and they will even be affected as we continue to decline. Switzerland is using negative interest rates. Yea things are figgin great.

    • CASTIEL

      time to wake up from that dream……wakie wakie…get out of the bed and go work :)

    • Green tip

      I do not like you recovery

      • SunnyFlaSnotress

        I do not like you Green tip

    • The GOOSE

      What’s the color of the sky in the world you live in?

      • SunnyFlaSnotress

        recovery, your post has more upvotes than other posts. It’s interesting that it doesn’t move to a higher position.

    • FortuneSeek3rz

      People are only willing to work so hard …then they want the rest in gimme’s. In the mean time the government is their scapegoat. A few short months ago gas prices were too high, now they’re too low. The dollar was too weak, and now it’s too strong. The stock market was correcting, now it’s back at bubble levels. Currently, the junk bond market is the “flavor of the day” for the crew who just can’t stand American prosperity.

  • recovery

    Just the other day, I saw a new family moving into a very nice neighbourhood. They are very happy and what this goes to show you is that the middle class is prospering. Homes are now affordable, with more people buying new cars and making more money than ever before.

    You people are so pesimisstic that it is completely unreal. Stop being delusional and wake up to the sunlight. America is now at the top of the world and doing better than ever before. It brings a tear to my eye.
    People are making 6 figure salaries, and working more harder than ever before because that is the American dream.

    • df NJ

      As much as I am convinced politicians will continue to be corrupt I have equal faith that people will continue to copulate, have children, buy homes, raise their kids, continue to eat and buy stuff. It may practically be slavery at this point but people just love to copulate!

    • Uncle Scam

      Cocaine is still one hell of a drug.

      • Philosopher

        Not really. All hype. May as well just burn benjamins and drink bleach.

      • CASTIEL

        a few more moments and he swears that saw giraffes flying in the air.

      • GSOB

        The struggle found in wicked men between conscience and will is not the striving of the spirit against the flesh, but that of flesh against flesh inordinately desiring.

        2 Peter 1:3, 4

    • Bill G Wilminton NC

      What is stronger than cocaine maybe rocket fuel.

      • BeenThere

        Definitely, rocket fuel is better :)

        • df NJ

          People love buying Bibles and giving money to the church. I don’t understand what they are selling but people love it like cocaine or rocket fuel. “Jesus on the dashboard!”

    • barry oldwater

      Working more harder huh, more harder, factory orders are down, the workers you are talking about must be “working more harder” to try and pay their bills.

    • MaxRockatansky33

      I hope it’s sarcasm. If not I suggest a good psychiatrist.

    • Malcolm Reynolds

      They are very happy and what this goes to show you is that the middle class is prospering.

      LOL! You saw one family move into a house, therefore the middle class is doing well?

      YIKES! This is your brain on brainwashing people. You Obama water carriers are scary.

      • df NJ

        If you go to EPI dot org the actual numbers are not as optimistic as your anecdotal evidence. But don’t let your own math illiteracy get in the way of your superstitious beliefs. I am hopeful things are turning to the upside. A journey of a thousand miles begins with a single step. We have a long road back to having a STRONG America again.

    • Watchman

      The only drug you are on is the same one you call yourself “recovery”. That’s a good laugh but now that it is over begone you troll.

    • Bill G Wilminton NC

      Cars haha lol are being bought with 84 month payment books and we are now back to 0 down………and for much much higher interest no docs haha just pay a repo fee in advance called by some other name.

      Homes are now at 3% down and a new program where you may include other family members incomes and at 0 down………Haha yea we are doing GREAT.

    • CASTIEL

      oh yes…..and you close they eyes to the misery and poverty growing in USA and all around the world???? sheeps like you will have a very miserable end…

    • http://erasemyboss.com Morbius Two

      In America we spell it “neighborhood” ! You spelled it the Brit way… who are U trying to fool ?

    • Al Ario

      please, stop using mescalina. It is not safe for your sanity.

    • Jerry C

      ROFLMAO. Did they get the house at a bargain on foreclosure? Enjoy your new neighbors!

  • ali

    Print and print more to get out of the trouble. As long as dollar is in demand globally, no recession is big enough to stand the power of printing.

    • Bill G Wilminton NC

      When we print we go deeper into debt because the money is debt based. Its the death star……..

      • ali

        Agreed but as long as other nations are willing to buy this debt we can always print to ride any recession. Yes the question is how long we can keep the world under the illusion of mighty dollar?

        • Bill G Wilminton NC

          The more we print the deeper we go….til the death star.

  • K2

    Michael, you are un-wittingly turning this blog into the anti-semitic zerohedge. Doom and gloom everyday. Just because some factors are repeating like what happened in 08, it doesnt mean it will play out the exact same way. In 08, the housing bubble burst, now it its not close to bursting. Also a ”10%” fall in stocks is not a ”crash’ or ”collapse”.

    • fwalker2016

      10% fall? Key indices are literally up 12% since the ludicrous imminent crash and collapse of civilizations was a supernatural certainly- and thats just since September! For most of the “followers” even an industry defined crash of 30% may still leave key indices 50%+ higher than where their antics began. They sure make for excellent capital markets related comedy!!

      • df NJ

        So are you saying by not having the crash that God intervened in making sure man continue to live his life with love and blessings?

      • K2

        See that michael? fwalker…i was referring to the 10% drop mentioned in this article and in an earlier one.

        • Watchman

          K2 you can’t refute Michael’s finding and evidence so you might as well just admit you are still a failure. Trolls will continue to be trolls.

          • K2

            michaels finding doesnt prove that an economic crash happened.

          • Watchman

            Yes it has but your too dimwitted to understand. Markets are slower to catch up but you wouldn’t understand.

          • K2

            No it doesnt, you are too dimwitted to understand.

          • Watchman

            Says the dimwit himself. How about you actually provide some counter proof to Michael’s articles then maybe you might be allowed in for comedic relief troll.

          • K2

            Read my comment below.

          • Watchman

            No thanks I don’t need to read your foul troll vomit. How about you either provide evidence that there is no correlation in the 7 year economic cycle and 2008 and 2015 in terms of Baltic Dry Index, CDS, Junkbonds and others or simply GTFO. That’s what I thought.

          • K2

            Even if there is a correlation it doesnt prove US is in a 08 kind of situation because like i said gdp growing, stocks growing, non farm payrolls, no housing crash.

          • Watchman

            Yea keep saying that to yourself if that is what helps you go about your day. There are too many correlation and similarities to the derivatives and subprime crisis of 07/08 but yet you can’t acknowledge them. What’s more hilarious is that you think since the US GDP is growing and that there is no housing crash atm or that stocks are growing everything is good. Are you sure you are not “recovery” or his sidekick?

          • K2

            Correlation is not causation. Also no i did not say everything is good. Are you sure you are not an id*ot?

          • Watchman

            Are you sure you are not a troll because it seems only you could be so dimwitted to not admit that. Let me guess the lowest bidder uses you for troll farm work.

          • K2

            Yep you are an id*ot.

          • Watchman

            Is that part of your script or are you allowed to improvise you troll farm idiot?

          • K2

            Its the truth.

          • inverse of never yesterday

            I agree with K2. No correlation in the 7 year economic cycle..

            In
            December 2008 when everyone was panicking and prices on Corvette’s
            dropped by 20% I bought one. 7 years later I am not buying one.

            In
            March of 2009 real estate prices in Southern Florida were tanking so I
            purchased a condo which I now rent out. Almost 7 years later and I am
            not buying one.

            Of course I am being bragadocious but honest.

            If there actually was a 7 year cycle, and people
            believed in it wouldn’t you think they would be completely prepared knowing
            it happens every 7 years?

            Take something bad when it happens and capitalize on it to better yourself or at least make yourself happy.

            Quite
            whining and complaining and cowering in fear and do something if you
            think bad things are about to happen.

          • Watchman

            Oh look it’s Alwaystrolling returning again with his second account. You seem to be so desperate to troll that you keep on returning here but don’t worry even proxies and vpn’s won’t hide you and you will enjoy a nice long ban.

          • Watchman

            Oh and you poor pathetic troll I have mountains of economic data that says you are wrong but it’s too bad because you are just as dimwitted as your other troll farm idiots.

    • df NJ

      What does anti-Semitic mean? There is just absolutely no criticizing of Israel allowed in our politically correct country. Everything that is happening in the ME is outlined in the Greater Israel project or the Oded Yinon Plan foreign policy paper. The idea that it is morally okay to kill Arab children because someday they will just grow up to be terrorists is immoral in my mind. Am I anti-Semitic? Jesus taught us to love our enemies as if they were our children. But nothing sacred and no one is holy anymore. It saddens me to see so much bloodshed and bomb dropping. When will it ever end? And you wonder why they hate us.

      • df NJ

        _“The plan operates on two essential premises. To survive, Israel must 1) become an imperial regional power, and 2) must effect the division of the whole area into small states by the dissolution of all existing Arab states. Small here will depend on the ethnic or sectarian composition of each state. Consequently, the Z ion ist hope is that sectarian-based states become Israel’s satellites and, ironically, its source of moral legitimation… This is not a new idea, nor does it surface for the first time in Z ion ist strategic thinking. Indeed, fragmenting all Arab states into smaller units has been a recurrent theme.”

        • Gay Veteran

          whoa, whoa, whoa, you’re going to upset the Israel Firsters here

      • GSOB

        Let both grow together until the harvest, and at the time of harvest I will say to the reapers, “First gather together the tares and bind them in bundles to burn them, but gather the wheat into my barn.”’”

    • Watchman

      Oh look it’s “recovery” under a different nickname. You must be cubicle buddies in your troll farm you moron. Prove that 2008 is not repeating and make sure to show charts and articles you dimwitted bridge troll.

      • K2

        You d*mbass you want me prove it is not repeating, well the housing bubble isnt bursting!!

        Its you who need to get out of your cubicle and get some fresh air, its always doom and gloom for you. You spend way too much time on this blog.

        • Watchman

          Nice try there. How about the auto-loans subprime and how about the no-money down being used by the same lenders or did you forget that?

          I have more information and charts/articles than you the dimwitted bridge troll can wrap your head around.

          Now go back to your troll farm and tell them you are a failure and let your cubicle buddies know as well.

          Oh and I have been on this blog for many years so don’t try and pull the card where you think you have been here longer.

          • K2

            Are autoloans subprime crashing you m*r*n? You have a lot of charts but no brain cells. Tell that to your cubicle buddies. Troll.

            Oh and you have been on this blog for many years? No wonder you have become like this.

          • Watchman

            Hilarious response but it took you that long to come up with it? No wonder you are a lowly paid troll. So what other nickname or handle do you use Zazz, Recovery, odfsih?

            You seem to be the one lacking brain cells and even logic. Now crawl back to wherever you came from because you won’t win this. Oh and calling me a troll here doesn’t work because you as the troll will get the troll spray.

          • Watchman

            I shouldn’t even ask what you are doing on this blog if you continue to argue and dispute Michael’s finding. Your only purpose here is to pollute the comment section. Thankfully there is enough troll spray to go around for you and all the other useful idiots.

          • K2

            How old are you?

          • Watchman

            How old are you? Says the troll under the bridge.

          • K2

            Yep, you are not an adult.

          • Watchman

            Says the dimwitted bridge troll. Now I have said many times before either contribute or don’t complain when troll spray is used and you are banned. You say you have been on these forums for a while but all you do is complain and attack the authors finding while not providing any counter proof. That’s troll behavior enough.

          • K2

            All i do is attack? look at all my comments going back and you will find that i dont do that. And you want proof, look at the housing sector. It dint crash. Look at stocks, look at US gdp, look at non farm payrolls etc.

          • Watchman

            You think that stocks are an indicator of a healthy/functioning economy? No wonder you are the dimwitted bridge troll. Oh and those Obama job reports have been dissected many times over and yet you still believe them. So who is the troll and the sheep?

          • K2

            No they are not but bad stocks are an indicator of a bad economy. In an economic depression or crash which michael seems to suggest america is in, stocks dont do well. Also whose jobs report should we believe?

          • Watchman

            Considering that Wall-Street stocks are decoupled from Main-Street Wall-Street is not an indicator of a healthy and functioning economy. History has shown time and time again that financial de-regulation leads to more downside risks and failures but you already knew that didn’t you? Again the information is presented all it takes is the capability to read and analyze the information presented. Now if you want to troll you can go right ahead but the troll spray is waiting.

          • K2

            Yes it is not an indicator of a healthy economy i too said that. And the rest of your comment doesnt disagree with what i said

          • K2

            It took me that long because i was reading some older articles and their .

            You say you spent years on this blog and yet you think me and jazz are the same. You are a bigger dimwit than i thought. And you are also a troll, and i will keep calling you one.

          • Watchman

            If you aren’t Zazz you are his comedic relief cubicle troll buddy. Or are you simply a .gov employee trolling?

            You provide comedic relief and nothing more K2 aka troll farm idiot.

          • K2

            Funny i actually find your comments funny. Me a .gov employee?, lol. I wish it was true.

          • Watchman

            Do you have anything else to add or do you wish to provide comedic relief. Either contribute or don’t complain when the door shuts on you. Enjoy your ban with the other trolls.

          • K2

            I wont be banned. Dont worry. Also this argument is being prolonged by you. You havent said anything of substance right from the beginning, just name calling.

          • Watchman

            Why should I provide anything with substance with you? You are not worthy of that and it may end up hurting your dimwitted bridge troll mind. Hey let me guess you are an Obama sheep?

          • K2

            All you do is name call and nothing else. You are not even worthy of the air you breathe.

          • Watchman

            Coming from someone such as yourself you are a waste of the atoms that you are made up of. You are a waste of flesh. But then again you already knew that and only can troll.

            Now you can go back to worshiping Obama your master you slave.

          • K2

            Hilarious.

            Also I am no obama worshipper nor a bush worshipper. I am simply disagree with the article thats all. I agree with michael much much more often than disagree with him. Infact i agree with that the US and the world economy are in a slow downward spiral. We only differ on the point if the US and the world is currently is in a crash or not. You are taking my disagreement with him too personally kid. And resorting to name calling. Seriously grow up.

          • Watchman

            Says the person calling another person a kid. Is that the typical resort of an Obama worshiper or is that the typical Sheeple rebuttal?

            As for whether or not and who needs to grow up it’s quite obvious you need to grow up. Telling others to grow up is an obvious sign of denial.

          • K2

            Again name calling and accusing me of being an obama worshipper. You have nothing of substance to add.

          • Watchman

            You have nothing of substance to add. You just confirmed that. Now that is out of the way you can stop polluting the comment section.

          • K2

            Tell that to yourself.

          • Watchman

            Since you are still here do you have anything to add or to contribute? Nope didn’t think so. Next.

          • K2

            I am sorry do you own this blog?

          • Watchman

            I am sorry do you own this blog?

          • K2

            No i do not. I am not the one acting as if i own this blog its you.

          • Watchman

            I don’t own this blog. However I do happen to be in possession of a wonderful thing called troll spray. It’s working wonderfully fine so far and don’t be surprised to find your comments deleted and you banned. Enjoy your ban.

          • K2

            We shall see…

          • lmaoLMAOlmaoLMAOlmao

            you guys are all meanies, this thread belongs on Zerohedge, lolololol

          • Green tip

            Watchman, have you ever called me a troll? Don’t remember if it was you or someone else.

        • Joltin Joe

          You’re correct, housing is not bursting, this time it’s student loan debt, oil and cars :)

          • K2

            They too aint bursting yet.

          • Joltin Joe

            Oil is way down, the Yuan was just added to the to the reserve bucket, asia is selling Treasuries. Student Loan debt is crushing people, defaults are on the rise, 84 month car loans…….. time to open you eyes K2. by the way isn’t that what they call the fake pot? you should stop smoking that crap and go green. :)

          • K2

            I dont smoke pot nor drink. Even though all you said are happening, student debt bubble, car debt bubble arent bursting yet. Which planet are you on?

          • Joltin Joe

            Patience grasshopper, all in good time!

          • K2

            the question was whether its happening now. And it isnt.

          • Joltin Joe

            The setup is in place, just wait. the rich need to extract more wealth from the rest of us AGAIN!

  • rentslave

    The Muni’s will hold their value.They will squeeze the taxpayers testicles to avoid default.

    • Philosopher

      Did you miss the news about Puerto Rico? A colossal failure. So much for municipal bonds. It is the credit markets that scare me. There was that one day where there was huge jump in Germany from .05 to .77 percent in one day. I didn’t know what a BIG DEAL that was when it happened. When that happens again and cannot be squelched, be afraid.

      • df NJ

        The problem with Puerto Rico is all they ever do is drink rum and copulate. If they were not so busy with those two activities they might actually have a decent economy.

  • Barry Goldwater

    I just finished an article in the Wall Street Journal looking at the merger between DuPont and Dow by Dennis Berman entitled Dow-DuPont Merger: The Shrinking of American Ambition.
    It’s not a strategy for growth it’s a strategy for survival.
    The author cited how this and other mergers, Budweiser-Miller and the list goes on, reflect a cut costs and survive positioning rather than any bold outlook for the future.
    Indeed we will arise one morning to find everything we have , drive to work, or do for entertainment is all made and produced by a few companies which can be counted on one hand. What’s in the future these tycoons see that the rest of us haven’t picked up on yet? Is Corporate America actually sensing America’s commercial decline just as we’re witnessing her moral, social and political decline?
    It’s also worth mentioning that with each of these mergers among huge industrial giants overlap and redundancies are always eliminated resulting in the loss of high paying jobs. Manufacturing is already getting killed in the US . As high end jobs disappear and are replaced with lower paying jobs usually of the service sector variety those citizens have less disposable income and so the down cycle continues on it’s merry way to the bottom. Less for an individual means less for everyone within that individuals economic chain.
    It all points to pending calamity however it’s a question of where the trigger lies and when it gets pulled.

    • antonio

      Anglo American to lay of 85,000 workers.
      Petrol in UK projected to drop below £1.
      And thats just this mornings news.
      I think the thick brown stuff is about to hit the mechanical contraption!

      • http://www.coroflot.com/joelpeeters/portfolio Joel Peeters

        or, as Goldminer said once here “The Feces are about to hit the rotary oscillator”…

        • df NJ

          I thought BG was against American adventurism and once said, “America first”. But I cannot find out if that is true or an accurate quote.

        • NowAlive

          LOL!

    • merrileerj

      Barry, is that you???

    • RedSky

      Mergers these days seldom make a company stronger, usually the opposite.

    • AK

      BG – this trend will only accelerate with the TPP. It is no secret that the TPP was largely written by the big global corporations with the intended goal to usurp the power of sovereign nations. We will see the day where a handful of powerful corporations will rule the world (they already control most countries). And it doesn’t take a genius to figure out who owns a large chunk of these mega-corporations (the same families who essentially own and control the central banks throughout the world).

  • Zoltar

    No question we’re on a long, downhill path. But the same people were absolutely sure the economy would crash in September. Then October.

    Face it. They can keep this Ponzi scheme going a lot longer.

    • Bill G Wilminton NC

      Slow motion avalanche……………..

    • Steeve Girard

      Yes they can keep it going for the next 2 crisis, but after that… there is the conventional oil wall! which will happen around 2030 by acceleration.

  • Chaos no

    Its “coming soon, red lights are flashing and the signs are everywhere” yet the economy keeps beating on. How many times can you keep saying the signs are there and we havent seen “levels” like this since the last recession yet it keeps ticking. If I kept saying its going to rain eventually I will get it right. That doesnt mean Im enlightened about the elements and can see things others cant. We may have a storm coming but the sun will shine shortly afterward.

    • df NJ

      With oil prices dropping there is no inflation in site. Once competition heats up people will start saving money with lower pricing for goods and services. And that point business will start doing higher volume and the number of good paying jobs will start increasing. The US economy is a big ship with a small rudder. But if we ever get this thing turning in the right direction the bull market will last for decades. There’s just so much housing repairs, people living with parents, junk cars, and products that need replacing. And a stronger dollar will make everything coming out of China even cheaper. And the best thing about raising interest rates is people saving their money will not be taxed on it as much. If the 320 million Americans want commerce they will have it in my opinion. It’s really hard to compare today with 2008 on so many metrics and zeitgeist.

      • Gay Veteran

        “With oil prices dropping there is no inflation in site….”

        uh, food? medical insurance? education? etc.

        • lmaoLMAOlmaoLMAOlmao

          eggs at 3-4/doz now, I think we will be QE’ed and the dow will move to 30,000 but eggs will be $8/doz

        • df NJ

          Cartels and monopolies really stink. We just don’t have any competition anymore to wring inefficiencies in the pay-to-participate markets.

      • rentslave

        You’re forgetting the millions with frozen COLA’s facing rising medical costs and rents.

    • Jerry C

      Noah preached for 120 years of the coming Deluge and only a total of 8 human beings listened. Of course, when it actually happened, it was too late for the naysayers. Hope for the best, but plan for the worst never hurt me.

  • df NJ

    Sick of the Fed printing money. Executive Order 11110 is the answer.

  • Malcolm Reynolds

    It seems there’s a new wave of sunshine and lollipop imbeciles at bat today.

    • df NJ

      You only criticize and hate in other people what you do not like about your own character.

      • Watchman

        df NJ considering that you upvote these same trolls you may as well be one and if not you are a troll groupie. Now do everybody a favor and either contribute or get lost with your troll buddies.

        • Malcolm Reynolds

          He is one of the ones I was talking about.

          • Watchman

            Yea he seems to be part of the “recovery crowd”.

      • Malcolm Reynolds

        Well, I criticize all the low info trolls and I’m not low info so….

  • jox

    ‘You’ are not in a better shape than the rest of the world. The american stock market full of printed dollars is.

  • Preparequickly

    The town i live near there are on 2 shops left open downtown along with the library. They have already started selling the bricks from the abandon buildings. Really wish i could post pics on here to show you how far down hill this place has gone. When the cotton mill closed in 2004 everything left one by one. My 2 sons moved 75 miles from here to get a decent job and are now afraid of layoffs themself. Im just glad my farm is self sufficent and is paid for. I pray every day things will turn around here just seems to keep getting worse. I have been prepping since the mid 90s and it will continue i just hope i have enough for my entire family when the shtf and my sons have to return home. Not really sure what it will take to turn this country around but i know it will take decades of election cylces if we even have a chance at that it maybe to far gone now.

    • Bill G Wilminton NC

      What state are you in ?

      • Philosopher

        Sounds like Appalachia to me.

        • Bill G Wilminton NC

          yes could be…………….as all the small 3 story brick factories that used to employ 30 -40 all empty now. The end of the USA we are watching. ROOT FOR TRUMP.

    • SunnyFlaSnotress

      I wish u could post too

    • Jerry C

      Best advice I ever heard: “You ain’t no man unless you own some land.” You have yours paid off, so you way ahead of the curve. Keep the faith.

  • GSOB

    Deuteronomy 10:16, 17

    • GSOB

      Deuteronomy 30:6
      Colossians 2:11

      • lmaoLMAOlmaoLMAOlmao

        so trust in the Lord and all will be well? I find the old testament difficult to parse

        • GSOB

          SInce that may be the case, then you will not understand the last book of the Bible either.

        • GraceLillian

          Romans 8:28
          And we know [with great confidence] that God [who is deeply concerned about us] causes all things to work together [as a plan] for good for those who love God, to those who are called according to His plan and purpose.

          1 John 4:19
          We love, because He first loved us.

          Psalm 55:22
          Cast your burden on the Lord [release it] and He will sustain and uphold you; He will never allow the righteous to be shaken (slip, fall, fail).

          1 Peter 5:7
          casting all your cares [all your anxieties, all your worries, and all your concerns, once and for all] on Him, for He cares about you [with deepest affection, and watches over you very carefully].

          Psalm 23:1
          [ The Lord, the Psalmist’s Shepherd. ] [ A Psalm of David. ] The Lord is my Shepherd [to feed, to guide and to shield me], I shall not want.

          So as you can read God loves you and everyone with a love that is genuine and always worthy of our trust and confidence. God is love and love is real and will not fail nor disappoint you. You just got to believe to see, be aware that he is with you and God will make sure everything turns out better then you can even imagine. :)

          • GSOB

            AMEN

        • Jerry C

          why do you hate God so much? what is so difficult about the OT? do you think you could write something better to deal with people back in ancient times where, for basic reasons, there were no laws?

    • Gay Veteran

      Polly want a cracker?

      • GSOB

        Who’s Polly?

        • Gay Veteran

          you, you parrot

  • Watchman

    Bring on 2008. The more they fall the bigger they fall and it seems the mistakes of the past keep repeating. Just look at the previous market crashes and how each one gets bigger with the 7 year economic cycle.

  • kaysel

    This article is just one more example showing how bad the U.S. economy really is. While we have added waitress and bartender jobs, manufacturing has lost jobs, inventories are bloated, sales have declined, and trade is contracting. Welcome to the world concocted by the Federal Reserve. More bad news to follow upon the raising of rates–even by .25%. The big business mergers are examples of crony capitalism brought about by zero rates and the concentration of capital on Wall Street. The main street economy has been sluggish at best since 2009. I think we are just at the beginning of a severe economic crisis, which will be much worse than that of 2008.

    • Scott Comin

      The few people that have money are the seniors and older retirees. They go out to restaurants and bars and drink and eat that is it. I must say they sure earned it. My dad sure did.

  • The Sky Must Be Falling

    Well time to go back to our bunkers kiddos. Is everyone underground yet? We might have a EMP attack or the dollar might collapse tonight. Kiss your loved ones and tell em how much ya love em. Good times are gone forever. Doom gloom boom!

    • Watchman

      Let’s see you say that when the sky falls upon you and you cannot survive. Let’s see how smart you are then troll.

    • Philosopher

      In my area, this morning right before dawn, I woke up to one of the worst lightening storms of my life. I thought at any moment the roofe of my house would be torn off in a tornado or gust of wind.

      And EMP attack is more terrifying that the roof of my house being blown off in a storm. I have homeowner’s insurance. I don’t have EMP insurance.

    • Bill G Wilminton NC

      No Jesus is coming soon get right with HIM !

  • J B

    It’s only Junk if your the last one holding the Bag

  • lmaoLMAOlmaoLMAOlmao

    TRUMP 2016

    • Bill G Wilminton NC

      Would be great and its the only hope.

      • GSOB

        Christ is the only hope.

        Mr. Trump is an icon symbolizing the wayward, boastful, unpredictable mannerisms of culture in the USA today.

        He is bombastic.

        Did you know that?

        You get someone as he into the ultimate position of power, then soon afterwards – you’ll pray for the return of the likes of our current POTUS.

        • Bill G Wilminton NC

          I am a retired businessman entrepreneur who has sat at many meeting conference tables to do deals.

          Mr. Trump has sat at many also but the tables were longer the dollars were larger and many many more deals than I.

          The tendencies that you allude to Trump would be an extreme detriment to his deal making abilities.

          When Trump first started his campaign I had two thoughts ; that he was a bit crass, but he spoke the words that I believed . He said stop the illegals, firm up the border, and when he said I am not Politically Correct never was and never will be, I finally got it. He is a true leader and says what has to be said. He is not bombastic but he is establishing the fact that he is not a POLITICIAN.

          Lastly at a big heavy duty boring meeting Trump would be a breath of fresh air and keep the deal moving with his wit and knowledge. Behind closed doors things move very close to the style that Trump exhibits. Trump has done so many deals with so many different people he has to have a style that is flowing not bombastic. You are so used to the SPEAK that says NOTHING that Trumps BE REAL style grates you. It is what is needed in business and to run a country or the military. Read about General Patton.

        • Bill G Wilminton NC

          Our current POTUS is a puppet of the New World Order……so are most of our Congressman and Senators. Dem and Repub 2 wings same bird and going into a wall at 100 mph. GO TRUMP

    • Bill G Wilminton NC

      TRUMP TRUMP TRUMP

  • lmaoLMAOlmaoLMAOlmao

    Islamists hate us.

    • df NJ

      There are 7 billion people in the world. Most people just want to raise their children in peace. And then the US air force comes along an bombs the shiite out of them.

      • Bill G Wilminton NC

        The US is under the control of the Elites of The New World Order………..all in The Bible.

    • Bill G Wilminton NC

      They HATE all who are not MUSLIM do you get it…..close the mosques and bar burkas and no more Muslims into the USA.

  • lmaoLMAOlmaoLMAOlmao

    Islam is incompatible with the West

    • df NJ

      Maybe they would calm down a little if we were not bombing them all the time.

      • Bill G Wilminton NC

        This is a Spiritual Battle and Islam is from the pits of hell…….

    • Bill G Wilminton NC

      ISLAM is Absolutely Incompatible and TRUMP is correct no Muslims into the US.

  • lmaoLMAOlmaoLMAOlmao

    on the plus side, the DOW will be QE’ed up to 30,000. on the downside, Eggs may hit $8/dozen

    • Philosopher

      I ahve seen eggs for $6 -plus at Fred Meyer.

  • Bill G Wilminton NC

    Thanks df NJ for some great info ! There is a book titled “The Creature from Jekyl Island ” the creature is the federal reserve written by G Edward Griffin. I used to give this book out to interested people 20 years ago. Mr Griffin does an update every year. This is a must read.

    • GSOB

      Thanks. May I suggest to you the free pdf download of the book:

      “The Great Tribulation” – David Chilton

      Look for it.

      “Whether you wind up agreeing with Chilton’s analysis or not, his book is definitely worth reading, since it gives a clear and succinct and well-reasoned presentation of the position that the Great Tribulation and related prophecies were fulfilled during the lifetime of those who were alive during the time of Jesus’ earthly ministry.”

      • Bill G Wilminton NC

        I am aware of Mr Chilton’s books and the Title The Great Tribulation.

        Israel is back in their lands since 1948 . Mr Chilton is very anti Jewish and his theory’s are contra to the Bible.

        Distortions of the fact/truth help in a way because it gives one a much greater appreciation of the Truth.

        God told us in the Last Days to be on the watch for deceptions/deceivers for they would be many and great. I believe that Mr Chilton is a very good example.

        Sorry to have to say this as I can tell that you only have good intentions.

        Shalom

  • jsmith

    I think that the administration will come to a conclusion that the only thing which they have tried (printing money for the banks) has not worked, and will never work. Somewhere in the mind of geniuses like Yellen and Bernanke will come a decision to do the only option they have, and that’s to devalue the dollar. How they can do this knowing that the dollar has lost over 95% of its value is interesting, but what they might come up with is something like raising the price of gold and silver like they did back in the 1930’s, and or have Obama come on TV and let us know that now we can go to the bank and exchange 5 old dollars or more for a new partially backed by gold dollar. Hey, other countries do it all the time, so why not here. The obvious result here being that a lot of people are going to lose a lot of money, but in case you are wondering just ask the Germans how they felt back in 1923. Dollar devaluation is in the works. It’s the only solution!

    • df NJ

      Obama has no control over the Federal Reserve. And the Council of Foreign Relations controls the military. Obama is a puppet with no power.

      • Bill G Wilminton NC

        Obama is a puppet but the puppet masters control Obama and the Fed reserve and the military and all……….to achieve the New World Order.

  • Rufus T Firefly

    Think buying opportunity

  • Philosopher

    I don’t believe in peak oil.

  • amoneygame
  • df NJ

    I think this is more alarming than bond prices. What I don’t understand is why people are not rioting more. Maybe they are and it just doesn’t make the news cycle.

    “Here’s the problem: rents are increasing much faster than wages.Inflation-adjusted rents increased 7% from 2001-2014 while household incomes dropped 9%, the report showed. At the same time, rising demand for rental units has pushed the national vacancy rate to a 30-year low, driving prices even higher.”

    • Steeve Girard

      I can attest about the low vacancy of rental units, for one reason: The supposedly powerful, immortal, ultimate machines that are baby boomers, just got old and broken. They need to be close to hospitals and health services, to last a little longer. A lot of them are stricken with cancers and bone related diseases caused by chemical exposure they had in their workplaces and their food. Look at them, this will be our future… I hope you will want to change yours after that, I know, I did.

      • df NJ

        Well, be careful how you criticize old people because you will become one so much faster than you will ever imagine. Being a tail end member of the boomers your commentary is pretty accurate. But on the brighter side of things baby boomers longevity rates are dropping. I know some many people who I’m pretty sure based on their lifestyle through the years will not make it past 70 let alone 75. So maybe entitlements will not be as big as a crisis as the fear mongers are predicting.

        • Bill G Wilminton NC

          One big influenza and goodbye charlie to millions…………hachoo uh oh.

    • Bill G Wilminton NC

      df NJ good contribution………….thanks

  • Jazz

    Market futures up. Here comes the rebound. Hope you all bought the dip!

    • fwalker2016

      Roflmao

  • The GOOSE

    Excellent article Michael. I love when people like you give solid facts, not knee jerk emotional dribble.

    Well Done !!

    • df NJ

      But when the numbers do not support your point of view you consider them made up and fake. The last round of employment data was pretty strong.

      • Jacynthia Read

        Was it? When you consider that these were part time and low paying jobs, it’s not so good. Also, we have the lowest labor participation rate in our history of keeping records. The middle class is shrinking. None of this is good.

  • Chaos no

    Im glad we weren’t told to hold our breath for this collapse to happen because we most certainly all would be dead. Oil is below $37 this morning but the markets are soaring, and the reason why….this is not 2008. Were in a whole different boat than we were in 2008-09. Lots of cash flow.

    • Jacynthia Read

      And yet the money velocity is at a record all time low. It’s not good, and something is happening. In economics there is a lag time between when something happens and when it is felt by the economy. We are in that lag time. Look for 2016 to be dark for the economy.

  • RedSky

    Not to debunk anything Michael has to say here because it is all good but it seems that the old indicators for collapse seem to have shifted a bit. Could it be that the global economy is so vast that it can absorb and assimilate all this debt into the economy without catastrophic effects? Oil and junk bonds as well as the BDI are at levels that would indicate we are a sinking ship with a leash.

    • Bill G Wilminton NC

      No leash…………..

  • Jerry C

    Know this, my friend, you are not alone. I could have written the exact same thing. People keep voting like it even matters.

    • Lennie Pike

      It’s a good feeling to know I am not alone my friend.

  • HeyAHuman

    It seems like it’d be great if Trump were elected, but I still have a gut feeling that he’s been planted as a diversion. The liberal media force is just too strong, and I feel as though most globalist entities have plans that are conflicting with Trump’s ideologies.

    • Jazz

      I like Cruz and Rubio much better but Trump has a better shot. Even so, Bernie unfortunately will probably win it all.

      • Bill G Wilminton NC

        Jazz please go back to the bar………..TRUMP is the only hope.

  • Jazz

    Another up day boys and girls! The markets are going to the moon.

    • Watchman

      Oh look it’s the troll Zazz. Hey why don’t you fly to the moon you troll and then say how the up days are. You are one delusional moronic troll. You are so worthless that you only provide sad pathetic comedic relief.

      • Jazz

        Watchman, you are a man of many words. May God provide you with strength, wisdom, and prosperity to be used for His glory!

        • fwalker2016

          Fortunately you were provided a computer and an online connection to be used as the Internet’s best source for inverse trading data and capital markets related comedy.

    • Bill G Wilminton NC

      And main street is going to oblivion…………as goes the country.

  • Zoltar

    Eventually, one of these doom and gloom predictions will be right, just like a broken clock.

Rapture Verdict Ad1
Ready Made Resources 2015
New Self-Defense Tool
High Blood Pressure?
Finca Bayano

Silver.com

Coffee
Economic Collapse Investing
Lifesilver
Panama Relocation Tours
The 1 Must Own Gold Stock
The Babylon Code
180x350
Credible Warning
Marzulli Gift Offer
Coach David
Power Strips
Solo Stove
ProphecyHour
JatoProducts-banner
Facebook Twitter More...