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Nervous Breakdown? 21 Signs That Something Big Is About To Happen In The Financial World

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Will global financial markets reach a breaking point during the month of October?  Right now there are all kinds of signs that the financial world is about to experience a nervous breakdown.  Massive amounts of investor money is being pulled out of the stock market and mammoth bets are being made against the S&P 500 in October.  The European debt crisis continues to grow even worse and weird financial moves are being made all over the globe.  Does all of this unusual activity indicate that something big is about to happen?  Let’s hope not.  But historically, the biggest stock market crashes have tended to happen in the fall.  So are we on the verge of a “Black October”?

The following are 21 signs that something big is about to happen in the financial world and that global financial markets are on the verge of a nervous breakdown….

#1 We are seeing an amazing number of bets against the S&P 500 right now.  According to CNN, the number of bets against the S&P 500 rose to the highest level in a year last month.  But that was nothing compared to what we are seeing for October.  The number of bets against the S&P 500 for the month of October is absolutely astounding.  Somebody is going to make a monstrous amount of money if there is a stock market crash next month.

#2 Investors are pulling a huge amount of money out of stocks right now.  Do they know something that we don’t?  The following is from a report in the Financial Post….

Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks.

About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm in Cambridge, Massachusetts. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman’s bankruptcy, the data show.

#3 Siemens has pulled more than half a billion euros out of two major French banks and has moved that money to the European Central Bank.  Do they know something or are they just getting nervous?

#4 On Monday, Standard & Poor’s cut Italy’s credit rating from A+ to A.

#5 The European Central Bank is purchasing even more Italian and Spanish bonds in an attempt to cool down the burgeoning financial crisis in Europe.

#6 The Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank have announced that they are going to make available an “unlimited” amount of money to European commercial banks in October, November and December.

#7 So far this year, the largest bank in Italy has lost over half of its value and the second largest bank in Italy is down 44 percent.

#8 Angela Merkel’s coalition is getting embarrassed in local elections in Germany.  A recent poll found that an astounding 82 percent of all Germans believe that her government is doing a bad job of handling the crisis in Greece.  Right now, public opinion in Germany is very negative toward the bailouts, and that is really bad news for Greece.

#9 Greece is experiencing a full-blown economic collapse at this point.  Just consider the following statistics from a recent editorial in the Guardian….

Consider first the scale of the crisis. After contracting in 2009 and 2010, GDP fell by a further 7.3% in the second quarter of 2011. Unemployment is approaching 900,000 and is projected to exceed 1.2 million, in a population of 11 million. These are figures reminiscent of the Great Depression of the 1930s.

#10 In 2009, Greece had a debt to GDP ratio of about 115%.  Today, Greece has a debt to GDP ratio of about 160%.  All of the austerity that has been imposed upon them has done nothing to solve their long-term problems.

#11 The yield on 1 year Greek bonds is now over 129 percent.  A year ago the yield on those bonds was under 10 percent.

#12 Greek Deputy Finance Minister Filippos Sachinidis says that Greece only has enough cash to continue operating until next month.

#13 Italy now has a debt to GDP ratio of about 120% and their economy is far, far larger than the economy of Greece.

#14 The yield on 2 year Portuguese bonds is now over 17 percent.  A year ago the yield on those bonds was about 4 percent.

#15 China seems to be concerned about the stability of European banks.  The following is from a recent Reuters report….

A big market-making state bank in China’s onshore foreign exchange market has stopped foreign exchange forwards and swaps trading with several European banks due to the unfolding debt crisis in Europe, two sources told Reuters on Tuesday.

#16 European central banks are now buying more gold than they are selling.  This is the first time that has happened in more than 20 years.

#17 The chief economist at the IMF says that the global economy has entered a “dangerous new phase“.

#18 Israel has dumped 46 percent of its U.S. Treasuries and Russia has dumped 95 percent of its U.S. Treasuries.  Do they know something that we don’t?

#19 World financial markets are expecting that the Federal Reserve will announce a new bond-buying plan this week that will be designed to push long-term interest rates lower.

#20 If some wealthy investors believe that the Obama tax plan has a chance of getting through Congress, they may start dumping stocks before the end of this year in order to avoid getting taxed at a much higher rate in 2012.

#21 According to a study that was recently released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession.

When financial markets get really jumpy like this, all it takes is one really big spark to set the dominoes in motion.

Hopefully nothing really big will happen in October.

Hopefully global financial markets will not experience a nervous breakdown.

But right now things look a little bit more like 2008 every single day.

None of the problems that caused the financial crisis of 2008 have been fixed, and the world financial system is more vulnerable today than it ever has been since the end of World War II.

As I wrote about yesterday, the U.S. economy has never really recovered from the last financial crisis.

If we see another major financial crash in the coming months, the consequences would be absolutely devastating.

We have been softened up and we are ready for the knockout blow.

Let’s just hope that the financial world can keep it together.

We don’t need more economic pain right about now.

  • I think we will find out tomorrow when Benanke announces either QE3 or operation twist or even more dramatic. Who knows at this point?

    The GOP sent Bernanke a letter today warning about the potential dire consequence of more QE to the dollar. Maybe they know what’s coming and want to politically distance themselves from it.

    Anyways, great article as usual Michael.



    Free report on surviving the coming economic collapse

    • 007

      “operation twist” went over with the markets like a turd in a punch bowl. The entire market is scared to death. that is why they are rushing in mass to buy treasury securities which yield less money than the indisputable inflation rate. This can not last. They would be better served by stuffing it in their mattress. When interest rates rise dramatically these securities will be crushed.

      Nowhere to run, nowhere to hide. While gold is correcting today, it will continue to be the best places to park your cash.


    I want to encourage all of my fellow believers to stay strong in the faith. The Scriptures are now being fulfilled at a startling pace, and the signs Jesus told us to watch for are growing more apparent each day. If you feel confused or frustrated and unsure of what you believe, I urge you to call out to God. If you earnestly study the Bible and remain steadfast in prayer, you will grow in the grace and knowledge of our Saviour. Despite what the skeptics of this world might say, I have seen God work, and I know that He is our helper in the time of trouble, our great physician in the time of sickness, our provider in the time of need, and our Comforter in the time of sorrow. You have nothing to lose and everything to gain by fully surrendering your heart to the Lord.

    • Keadin

      Instead of prayer it might be wiser to prepare in a more tangible sense, like picking up supplies, crafting skills, or whatever else you think you need.

      Whatever is going to happen, when it’s all over, prayer alone is not going to feed you or your kids, only ingenuity and tenacity will.

      And my comment is not at all intended to be anti-religious, I am simply cautioning against putting all your eggs in the Church’s basket.

      • Bill S

        I can pray and I can prep. They aren’t mutually exclusive. What I’ve noticed on the prepping boards is that there’s a larger share of Christians who are prepping than you’d find in the general population.

        • DownWithLibs

          With all of my Christian friends and relatives prepping (and not too many of the non-Christians), I don’t think you need to be a genius to see that God is taking care of his own. I keep feeling that sense to press on even though I personally feel that I have done enough.

    • justamom

      Smash the Control Machine:
      Thank you for this response. Sound wisdom in times of such confusion and trouble. God bless you! 🙂

    • Johnny Believer

      Not everyone who have eyes can see or who have ears can hear. System of Material will be coming to the end, juggement will first begin in the house of God and will continue to every corner of the world.

    • Highspeed

      Thanks for your faithful testimony Smash.

    • kevin hanly

      Amen.Thank You.

  • Pat

    First I want to thank you Michael for the opportunity to express our reaction to the current U.S. / World financial situation. My wife is Russian born and raised. We had wanted to live in the U.S. But the U.S. has gotten in some ways worse than Russia. Now we are on to plan B.

    We are offering to share some survival information with anyone who asks. Things that have to do with living abroad, jobs, health, money gold and silver. Just contact me privately.

    There are steps that can be taken to protect yourself no matter how bad off you are.

    • Z

      what is your suggestions for moving to another country?
      Things that have to do with living abroad such as: jobs, health, communities that live Americans……..

      • Ecuador could be a great option. Rent, food, health insurance and entertainment can be as low as 1K per month.

        Being able to speak Spanish would obviously be a major advantage here.



        Free report shows how to survive the coming economic collapse.

      • Welcome to Ecuador! I arrived on September 17th, 2008. Quito is the Capital, right on the Equator, at 9,350 ft. (1.77 miles) above sea level in the heart of the Andes Mountains, where the weather is 50’s in the evening, and 70’s during the day all year round! Do not hesitate to contact me for your relocation or exploration needs! RETIRING OVERSEAS MYTH: You need a lot of money to do it. THE TRUTH: Many countries have a much lower cost of living. Move now, before retirement, and you’ll reach your retirement savings goals sooner.

        • Michael


          Thanks for sharing that information.


    • Larry

      I’m interested.
      I help with crime prevention in our area and I’m interested in passing along tips on how to prepare for the bad times.
      Any suggestions you have will be much appreciated.

  • Jean

    1st of October will trigger an automatic US government shutdown, unless either a budget is passed (hasn’t happened in going on 3 years now) … or yet another “continuing resolution (CR)” is passed by Congress. A CR allows the US government to continue spending to keep open. How likely is either of those thing to happen, in the current climate in DC? If we have a shutdown, what would be the ramifications in this economy, with all those people now dependent on government for their $$, food, housing, etc.?

    Last year there were something like 8 CR’s passed, some for a short a time as 3 days.

  • r.bitting

    The American people have become slaves to thier lifestyles. So addicted to thier material possessions and pleasures, that now it has become impossible to get them to see themselves in truth, a Godless people thats staggering to the slaughter. Like a heroin addict that has sunk to the level of forsaking his own family to support his habit, the people have turned on God. and now as a nation, it’s too late for us. It’s over. Now the only hope remains for you as an individual to turn back to God. Better wake up…. Your time is short, and the knockout punch is about to be delivered.

  • r.bitting

    Only in Jesus Christ can one find forgiveness of sins and refuge from the storm thats coming.

  • It’s interesting to see that all of this is happening at about the same time that ALL the nations are working to carve up Israel and divide Jerusalem for a totally unnecessary 23 Islamic state in the heartland of Israel.
    The God of the Bible has declared sure judgment on ALL the nations who mess with His agenda related to tiny Israel and the Jewish people.

    “I will also gather all nations, And bring them down to the Valley of Jehoshaphat;
    And I will enter into judgment with them there On account of My people, My heritage Israel,
    Whom they have scattered among the nations; They have also divided up My land.”
    Joel 3:2

    The nations have ALL cursed themselves(Genesis 12:3) Judgment has already begun as we see with Japan always rewarding the Palestinian terrorist enterprise now struggling to survive and no longer able to send millions of Yen to those who seeks Israel’s extermination.

    • r.bitting

      I agree, but don’t expect that to be the rule on this site.

      • David

        As a Christian don’t we WANT for what’s in Revelation to happen? Those events have to happen before our Lord returns right? Stop aid to Israel.

  • And to top it all off: WWIII

  • Cali-Prepper

    I also find the GEAB website interesting; one of their most recent newsletters, #57 I believe, states that the US is already in recession. I’ve been reading a book about the history of Great Depression by Amity Shlaes, and the mistakes made at that time, seem to mirror what is happening today.

  • Macnasty

    Well I also hope it dosen’t happen but its going to, so lets get it started so we can let the chips fall where they may,good luck to all its going to get ugly !!!!!!


    Bonjour , pas octobre noir , mais octobre rouge , rouge comme votre sang .Salutations

  • Many years ago, I knew a man that junked a car, and was not happy with what the salvage yard offered for it. Before he sent the car to the crusher, he drained the oil and coolant out of it, started the engine, and set a cinder block on the gas pedal. That’s the quickest way to blow up and engine. I wouldn’t have done that fit of spite. I would have pulled the engine and transmission, selling them for 5 times the amount the salvage yard offered. Yet, it is obvious that the Fed has done the spiteful thing, setting the cinder block of debt on the gas pedal of the economy, while the last drops of oil and water are draining from it. Perhaps the answers to “The Four Money Questions” can tell us why.

    • Kathy

      What a wonderful analogy!

  • Add to that the fact that we here are very busy answering questions for people who are thinking about getting food or getting out of the cities before the chaos.

    Please if you don’t have storage food get some now!

  • Gary2

    I think Obama is going to have a hard time in the election. His only hope is that the competition is such a joke as to be laughable. Maybe time for a third party to run/win???

  • Ameen

    Unfortunately, it IS coming, and there is not a damned thing anyone, but ANYONE, can do to stop it. Sit back, I guess, and enjoy the train piling itself onto the platform….

  • Mark

    We have been warned about this for years. Get your heads out of the sand and prepare for the coming pain. How is your food storage coming along? Have you been paying off debt or are you still borrowing money to live beyond your means? I sure do not see a rosey end to this story. What ever the outcome of this mess is, be thankful for whatever you have. Pray for those that are really down and out.

  • Zahid

    Watch out for these dates for a possible market crash —

    October 4,11,18,25 and November 1.

    A mega crash at least as big as October 2008 seems guaranteed within the next 6 weeks.

  • Lennie Pike

    That train is probably loaded with confused overweight Americans watching football or Dancing With The Stars, or logged into their internet brokerage accounts attempting to earn a living by pushing the right buttons on their laptops and cell phones.

    • Tim

      I don’t see anything wrong with investing ones money in an effort to survive. Many have had to resort to this because they’re unable to find a job. The problem is that right now it’s really hard to know how to invest such that one can make enough to feed themself and meet their other living expenses. With interest rates near zero, you’d have to have a lot of money in order to be able to live off of the interest. Stocks are not the answer. And gold and silver’s performances have been halted by the the criminal bankers with their massive short positions in these markets. So, what’s one to do?

      • 007

        Wait till gold corrects and buy some more. It will be going to $5,000 an ounce. Yes they are shorting it but all of the rich and central banks are steadily buying the dips. Gold is still up almost 25% this year. This will be the best buying opportunity you will see for a long time. But it may have a little more to correct before it continues it’s journey higher.

        • DownWithLibs

          Yes. They can only manipulate it for so long. The truth will surface and metals will shoot for the moon!

      • DownWithLibs

        The old ways do not work in this rigged economy anymore. Time to get unconventional and think outside the mainstream.

  • Zazz

    Nonstop gloom and doom. And nothing will happen. This blog is actually good comedy reading. Here in New York things are going great, unemployment (especially in tech) is low, everyone I know is doing great, taking vacations, buying toys and new homes. I work on 5th avenue and the shops and restaurants are jam packed every day. I keep hearing about nonstop gloom and doom, and I certainly don’t see it. I don’t know anyone personally that is unemployed, and everyone’s company that I know of is projecting growth. Think about it…how can Apple be selling millions and millions of their devices if things were so bad?

    You gloom and doomers will fail.

    • Dave in Scenic City

      Such hubris! This may be hard for you to accept but there’s a big wide world outside of Manhattan.

    • You just can not universalize what is happening in this economy based on what your little corner of it is doing. NYC, DC, other cities are just not feeling the pain the way the rest of us are.

    • justamom

      A rich man’s wealth is his strong city,
      and like a high wall in his imagination.
      Proverbs 18:11

      Don’t be deceived, Zazz. Your riches cannot protect you or save you.
      The calamities ahead are a wake up call. Now is the time to examine your life….see your need for a Savior. Repent and believe the gospel of the Lord Jesus Christ. He gave His life for you and loves you. I am praying for you.

    • Ian

      I agree. I have been reading about economic gloom for years now, and have been pondering why things continue to get better and people seem more prosperous. Like you, i do not see hardly anyone struggling. Everyone has cell phones. Everyone has an Ipad. Everyone buys Starbucks every day. No one i speak to seems worried about economic collapse and, as a matter of fact, i know of no one who is unemployed.
      Where is the collapse of which everyone speaks, because i really dont see it anywhere.

    • Mario

      Take a few minutes and read God’s word where he says in the end times they will be eating, drinking and marrying and having a good time, then sudden destruction will come upon them.
      You just have just confirmed God’s word. If you really think things are ok, try looking and little closer and listen.
      My God help you.

    • Kathy

      Thank God it’s not doom and gloom for you. Sadly, I know many people throughout the country who are suffering beyond belief. I happen to be one of them. It has been next to impossible for me to gain employment over the past year. After the death of my husband, I have had a very difficult time finding a job that will provide me a living wage. My 25 year experience as an executive homemaker means nothing to potential employers. To top it off, I now have to contend with a low credit score. Gee ain’t life GREAT! I am willing to move for that wonderful job opportunity, do you happen to have one. Oh I forgot to mention, it was a flu vaccine that killed my husband. Talk about a bad deal!

    • sharonsj

      Zazz, NYC is not the rest of the U.S. and since I was born and raised there, I’m quite familiar with it. Generally you need a lot of money to live in NY, so it has a higher percentage of rich people–who are the only ones with money right now. Everyone else is barely hanging on. And the fact that you personally don’t know anybody unemployed (though I think you are lying) doesn’t mean there aren’t millions of people who can’t find jobs.

    • LvM

      Since when does anecdotal evidence have anything to do with statistics?

    • TJ

      So things are going great for you on 5th Avenue in New York today…but what about tomorrow? You don’t see it now…but what about tomorrow? Apple may be selling millions and millions of devices made in China to Americans…but what about tomorrow?

      • Ian

        Dont worry about tomorrow, because we are in the “now”. Tomorrow will look after itself. Such is the way of the spirit.

    • DeathSpiral

      Nice points but no cigar just yet! The real monster is hyperinflation.

      What we are beginning to witness is the tip of the hyperinflation tornado created by printing money and keeping interest rates near 0% for several years. Everything required to survive like rice, coffee, sugar, cotton, corn, wheat, barley and cocoa are increasing at hyperinflation level rates. Non-essential items like electronics continue to deflate in price.

      We are beginning to experience a Weimar Republic in slow motion. In the beginning of the Weimar Republic about 40% of income was spent on housing and only about 7% on food. By the end of the Weimar Republic over 95% of income was spent on food and housing only amounted for 3% of income.

      While we hope nothing on the scale of the Weimar Republic hits, we are beginning to witness the divide where food is dramatically escalating in price while non-essential items remain stagnant or decreases in price. This is a terrible sign like large waves hitting the beach before the hurricane roars onto shore.

    • Highspeed

      I’ll betcha apple sells lots of that stuff overseas my friend. I saw a report the other day that said China wants the chevy volt built in China, since last year total new cars in USA were 11.5 million and chiner sold almost 17 millino new cars. Looks like the chinese have some cash to burn. Just maybe they like apple too.

    • McKinley Morganfield

      The local economy where I live in Iowa is fairly stable, new businesses have a decent chance of becoming successful, and unemployment is way below the national average. In fact, the entire state is doing very well compared to our neighbor Illinois. However, it doesn’t take much of a google to find out that however rosy you think it is in NYC the rest of NY is in deep trouble.

    • DownWithLibs

      The U.S. will lose its place in the world market as being the reserve currency. This will effectively end our way of life as we know it. Don’t be fooled. You will not want to get caught off-guard when this happens.

  • mondobeyondo

    Italy’s credit rating just got cut by S&P.
    There’s the ongoing Big Fat Greek Financial Nightmare.
    The U.S. also got its credit rating downgraded by S&P.
    There is the never-ending recession here in the U.S.

    And so…
    Here it comes… here it comes…
    Here it comes…..
    Here it comes……….

    Here comes my nineteenth nervous breakdown…
    Here comes my nineteenth nervous breakdown…

    (Thank you, Mick Jagger and the Rolling Stones!)

  • mondobeyondo

    October scares me. Bad things tend to happen to the stock market in October.

    1929… 1987… Let’s hope 2011 doesn’t join the list.

    • DownWithLibs

      Yes, the Black Swan month of October! Yikes!

  • laura

    Since 2008, the economy has continued to slide downhill (not double dip)with more on welfare, more unemployment, and zero future for younger workers even with college. The corporate/banker owned puppet politicians are useless and produce no results in America’s favor, because they never worked for a living and Elite controlled. Voting is a pinhead suckers game as the masses think things will improve after elections. The real leaders are unelected globalists.

  • Bill S

    I agree with you completely on this article, but do disagree with your conclusion that “We don’t need more economic pain right about now”.

    The ENTIRE PROBLEM with our economy is the corrupt Federal Reserve, the corrupt Banking oligarch, and the corrupt government regulatory agencies that are supposed to regulate them (e.g. SEC). The elites use the stock market to “loot” 401k’s and enrich themselves, and the only way for this to stop is for a stock market meltdown where they are wiped out. It is just like anything crimes that go unpunished: the longer they go unpunished, the more egregious the crimes.

    I won’t spend pages writing about the numerous crimes that are committed every day by Wall Street, however, manipulation is widespread. From using front running algo’s to put monthly 401k contributions in at the worst possible price to insiders printing themselves money via stock options non-stop and debasing shareholder value, the list crimes is long.

    Perhaps if we finally let the free market work and the markets tank, we can clean them out.

    With that said, as an experienced trader, I can assure you that with so many bets being placed on the downside, the opposite will occur and the looting will continue. Wall Street uses the money of short sellers against them, and will squeeze the market higher.

    The bottom line is the U.S. stock market is the most corrupt institution in the history of mankind. It is nothing more than legalized theft from the public, and sadly, the public is non the wiser.

  • Donald Wilson

    All I can say is good luck.

  • Friends, Americans, Countrymen, Sheeple. We have had a secret government, in this country, for a long time now – since 1913. It’s called the Council on Foreign Relations, and is an off-shoot, of the City of London’s ‘Royal Institute of International Relations’, a product of the efforts of Cecil Rhodes’ Roundtable Group, and the Fabian Society. The CFR serves the interests of Central Bankers, like Rockefellers and their predecessors, in Europe, the Rothschilds. We MUST END THE FED. We MUST ABOLISH THE IRS. We’d be smart to elect Ron Paul, in 2012.

    • LvM

      Ron Paul getting elected is actually a bad thing. Why? Because the economy IS going to collapse in the coming few years, one way or another, and who do you think would be blamed for it? Exactly; Ron Paul and his free-market, anti-central bank policies.

  • Something huge going to happen

    There will be no “hopefully nothing really big will happen in October”, as the writer so eloquently states it.
    The financial ground is rumbling beneath us as we breath. The world economies are going to be struck by a horrific financial earthquake that will topple the worlds largest economies. Hold onto your wallets everybody.
    Most of us are about to be wiped out of what ever little investments we have and then some. It is going to be so ugly out there you might actually wish you were dead.

  • I agree,

    Martial law is coming after the collapse.

  • Maria

    This life has one purpose. The salvation of the soul. Everything else in life is peripheral to that one purpose. But the goal of spiritual salvation has been replaced by materialism. Especially for those who gain power and influence. Even the functioning of governments has changed…from defending moral behavior to attacking it. Worldwide economic collapse is the result of worldwide moral collapse. Isn’t it ironic that the unholy pursuit of wealth has created the downfall of the entire economic system? The only path to recovery is through a cleansing of the system and our souls.

    • cathy

      Well said, Maria.

    • LvM

      “Worldwide economic collapse is the result of worldwide moral collapse.”
      I agree, but the moral collapse is not the pursuit of wealth, which has existed since the first organism came into existence, and which is exactly that keeps an economy going. It is the wars and excessive regulation and taxation(the meddling with other people’s lives) that is causing the economic collapse.

      • r.bitting

        She has it 100% right.

      • Maria

        Not the pursuit of wealth, but the unholy pursuit of wealth…

        Unholy pursuit of wealth encompasses all wrongful activities undertaken…to include wrongful taxation, regulation and war.

        • LvM

          Glad you changed your mind 😉

          • Maria

            I didn’t. That was my original statement.

  • You know it’s bad when the best option to make money in the stock market, is to bet against it.

    But since the stock market is rigged by computer algorithms which make up the majority of trades, you can’t trust it anymore.

    In The Elevation Group, we’re learning the best way to leverage the stock market during economic crisis, and much of that has to do with shorting the market.

    I love the funds that are 2X, meaning when the market you’re shorting drops by 5%, you make a 10% profit.

    Invest in financial education, because it’s the only way to protect your money and build wealth in this economy.

    • Bill S

      I strongly suggest that ANYONE thinking about shorting the market think again. The corrupt bankers know the deal, and ONLY THEY will get profit from a market downturn. When retail investors start shorting the market via leverage short funds, etc., those who control the market will “squeeze” the shorts—in effect, use their money against them to drive prices higher. They have done it over and over again and the rally staring in March 2009 was nothing more than the greatest short squeeze of all time.

      Whenever the market pulls back, retail investors start shorting the market because the media tells them to—IT IS ALL A SETUP TO FLEECE EVERYONE. They have no problem taking the money from the longs, but hey want those who are not invested in the markets money too, so they encourage people to short.

      The best thing to do is walk away—DON’T GIVE THESE CRIMINALS your money on either side. Invest in yourself, your family, real assets, etc.

      • Hey Bill, I appreciate your perspective. And I agree, uneducated people should not play with shorts, as they will get beat.

        But today was a perfect example of how the informed CAN make money in the stock market. A few days ago it was announced that Bernanke was going to implement a new stimulus program, which typically results in the market dropping in response.

        The S&P 500 is down 3% today, which in the 2X fund, means a gain of 6%… in one day.

  • Mary Louise

    I thought you might appreciate this short online book: Economic Collapse — A Solution
    By Swami Kriyananda
    September 14, 2011

  • Syrin

    All the austerity? WHAT austerity. Maybe all the “slight inconvenience”, but not austerity.

    Hair stylists in Greece are allowed to retire at 50 because it is considered a hazardous occupation! That means another 30 years of parasitizing the gov’t and economy while contributing for MAYBE 28. It’s a BROKEN FAILED system. In other words, a liberal utopia, and one Gary will come here and endorse.

    • DownWithLibs

      I’ve have seen people come into this blog post and others – they are obviously from Europe – chastising us in the U.S. for not having cradle to grave entitlements for our citizens! Now look at them. Idiots!!

  • Colin

    On Monday, the Republicans sent this letter to the Federal Reserve.

    “Dear Chairman Bernanke,

    It is our understanding that the Board Members of the Federal Reserve will meet later this week to consider additional monetary stimulus proposals. We write to express our reservations about any such measures. Respectfully, we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people.

    It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate. To the contrary, there has been significant concern expressed by Federal Reserve Board Members, academics, business leaders, Members of Congress and the public. Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserve’s actions have likely led to more fluctuations and uncertainty in our already weak economy.

    We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.

    Ultimately, the American economy is driven by the confidence of consumers and investors and the innovations of its workers. The American people have reason to be skeptical of the Federal Reserve vastly increasing its role in the economy if measurable outcomes cannot be demonstrated.

    We respectfully request that a copy of this letter be shared with each Member of the Board.


    Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor”


    This move by the Republicans is viewed as unprecedented, and some have interpreted the letter as a message for the Reserve to stop helping the economy and keeping the unemployment high.

    • Old Man

      And during the Bush years, the Republicans sent a letter of exactly the opposite demand to Greenspan. Who complied. Isn’t democracy wonderful?

    • typical

      “and some have interpreted the letter as a message for the Reserve to stop helping the economy and keeping the unemployment high.”

      Should say, “some idiots have interpreted”

      Can you please explain how the Fed has helped the economy at all?

      Perhaps you should acquaint yourself with this post about the Fed, right on this blog.

  • Colin

    I did a search on Wikipedia for stock market crashes. The trend is worrisome.

    1789 to 1907
    1789 George Washington is president

    1796-97 Panic of 1796-97

    1819 Panic of 1819

    1837 Panic of 1837

    1847 Panic of 1847

    1857 Panic of 1857

    1869 Black Friday

    1873 Panic of 1873 (Start of Long Depression, 1873 to 1896)

    1884 Panic of 1884

    1892 Paris Bourse Crash

    1893 Panic of 1893

    1896 Panic of 1896

    1901 Panic of 1901

    1907 Panic of 1907 (This panic led to the creation of the Federal Reserve.)

    More detail on these events can be found on wikipedia.

  • r.bitting

    You people that are waiting for the Political landscape to change or for the 2012 election, thinking that then it will get better…. You are waiting for the Great Pumpkin.

  • The only economy we can control is our personal economy.

    If people would get financial education and take action to get out of their savings, 401k, and IRA’s, and move into precious metals, commodities, farmland, etc., they would be okay.

    Instead, they have large debts and lose money to interest charges. They’ve cashed away their home equity through refinancing. And as employees, they pay the highest tax rates.

    That’s a formula for personal nervous breakdown. Take back control and regain your freedom.

  • Colin

    Part II

    1913 Creation of the Federal Reserve

    1914-1918 World War II

    1920-1921 Depression

    1929 Wall Street Crash

    1937-1938 Recession

    1939-1945 World War II

    1945-1991 Cold War

    1973-1974 Stock Market Crash

    1980 Silver Thursday

    1982 Souk Al-Manakh Stock Market Crash

    1986-1993 Japanese Asset Price Bubble (1993 – bubble crashes, effects last for a decade with stock prices ‘bottoming’ in 2003)

    1987 Black Monday

    1989 Friday the 13th mini-crash

    1992 Black Wednesday

    1995-2000 Dot-com bubble

    1997 Asian Financial Crisis

    1997 October 27 mini-crash

    1998 Russian Financial Crisis

    2001 9-11

    2002 Stock Market Downturn

    2007 Chinese Stock Bubble

    2007-2010 Financial Crisis

    2007-2009 United States Bear Market

    2009 Dubai Debt Standstill

    2009-present European sovereign debt crisis

    2010 Flash Crash

    2011 Stock Markets Fall; US downgraded by S&P

    As before, information on these events can be found at Wikipedia.



  • Colin

    Part III

    General perceptions – In the 1800’s, our ancestors faced a crisis on average every ten years. The Long Depression wasn’t as devastating as the later Great Depression, and saw the world transitioning into the Second Great Industrial Revolution. The 1890’s was a particularly rough decade for the world economy. In 1907, resulting after a catastrophic series of bank failures, a committee was formed and the Federal Reserve was created.

    Thirteen years later, our ancestors experienced a mild depression and a terrible depression in the thirties which was ended by conventional wisdom with the United States entering World War II.

    Between 1945 and 1973, there were no major stock market crashes and the United States was at its most prosperous. Starting in 1973, the number and severity of stock market crashes increased. Since 1973, we have witnessed 19 major world economic events. This is six more than occurred in the period 1789-1907.

    It’s no wonder to me that the recovery is taking longer. Our economic system is constantly being assailed, and doesn’t have time to recuperate. If this trend continues, we could be seeing at least five major events in the second decade of the 21st century alone, maybe more.

    So, for me, the idea that there could be a financial crisis this year or the next is not out of the realm of probability.

  • doomster

    Dow is down about 59 points now – I suppose that all depends on how much free money Bernanke wants to keep pouring in there… The east Europeans don’t even want the euro anymore:

  • Good reading but only the people advocating gold backed dollars have my ear. Gold is money honey!

  • This is scary stuff. Peter Schiff predicts a 100% chance of a recession. I say we are heading into the next Great Depression.

  • JOBlack

    Why don’t you take you “25 signs” comments and shove it you fear monger er. None of your predictions have ever come true since you started with this BS.

    Instead focus on why a white women like Sarah Palin are always pushing their self-righteous idiot, ideas on the one had, but secretly do and desire black men in and out of her dreams.

    Ever since white women arrived to this country, women like Sarah( might as well check on Bauchmann) who have an uptight view of life, chiristian, conservative, but in secret, they have sex with every black men they come in contact with.

    Just what kind of morals are these self-righteous women try to project on us?

    • Otown Right Guy

      If you don’t like the site, then don’t read it. The internet does not have plantations.

      You really hate white women for some reason. Did one reject you? You sound like the stereotypical “angry black man”. You need help.

      • Save the Republic

        Sounds like a potential rapist of white women. Believes they all secretly want a black man, so he’ll just give them what (he thinks) they want (him).

    • you must be an idiot democrat

      LMAO! Well at least you managed to drag yourself outta bed today. Bravo idiot.

  • David M

    What gets me. Very few people talk about our trade deficit. When we are losing about $50 Billion a month there’s going to be problems.

    That’s One Billion Dollars on the average leaving every state every month.

    Don’t tell me that’s not one of the biggest problems affecting us. I think IT is the Crux of most of our many problems.

    For the health of OUR country AND the world. We need a trade balance. Equal in/equal out.

    • Michael

      That is very, very true David.

      But every time I write about the trade deficit people tend to yawn. 🙁


      • DownWithLibs

        Not me. I believe it is a major lynch pin in what is transpiring. Good to know all we can. Buy Made In The U.S.A.!!!

  • Governments/Corporations of the World Taking Vacations at the End of September

  • JD

    Uncle Ben at the Fed is planning on some big save. I think the guy is all out of magic bullets. The Fed has been trying in vain to plug as many leaks as he can but like the Dutchboy and the Dike hes stacking shit against the tide. But dont worry, theres great fall programming and “My team won last night!” Yay! Wow Ashtons on Two and a Half Men!! Wooo hooo!! Theres no such thing as a depression!! Yes Virgina, there is a depression but its ok go smoke a fat doobie and check your Facebook theres a party at Bobbys tent city so its all good!!!

  • tim

    money is free at the top. those that own things own the longs and the shorts it matters not. the money is free. the aim is controll the humans . god help us

  • CitznKate

    I guess some people are spending like crazy, borrowing money into existence out of thin air with their credit cards and mortgage loans, and doing their bit to create the monetary inflation that will crush the poor, while claiming that everything must be all right if they can still do that.

    I am reminded of the teaching of Jesus of Nazareth in the New Testament book of Matthew, Chapter 24, verses 36 through 39: But of that day and hour knoweth no man, no, not the angels of heaven, but my Father only. But as the days of Noe were, so shall also the coming of the Son of man be. For as in the days that were before the flood they were eating and drinking, marrying and giving in marriage, until the day that Noe entered into the ark, And knew not until the flood came, and took them all away; so shall also the coming of the Son of man be.

    The ones taken away by the flood were not righteous Noah and his family. The ones taken away were the wicked –the ones partying-on like nothing was going to happen and no doubt, making fun of Noah.

    • r.bitting

      And that day is going to be upon the people sooner than they know.

    • callmecordelia1

      The anger and hatred and attacks against Christianity are startling. I like to read the comments on mainstream news articles, and it seems like no matter what the subject is, it will come back to an attack on Christianity or religion in general. I think that during the past years, it has really escalated. It reminds me very much of Noah being made fun of all the way till the flood waters came. This rings very true to me. Thanks for this comment, Kate.

  • JD

    I should have said Zazz instead of Virgina.

  • There is so much noise out in the markets at the moment. Surely Greece is the classic case of flogging a dead horse. They should exit the euro and return to how they were 15 years ago. A great place to spend your summer holidays. Portugal , Spain and even Italy may end up better off by following suit. The British have been given a lot of stick for not adopting the Euro but looks like they were right all along – resurgent pound anyone?

  • X

    Whenever it gets bad, TPTB ALWAYS start another war. War is profitable.

    For them.

  • It appears that the game may be getting close to the end. Gold and golds stocks appear to the only things holding up.

    • buy PMs

      Not today, Thursday.

  • Excellent and scary analysis

  • Lennie Pike

    Investments no longer exist – every market is manipulated by criminals to steal.

    Nothing wrong with investing money to make a living if possible.

    • Tim

      I agree, Lennie. There are no free markets.

  • What we are up against is a “normalcy bias” i.e. the majority simply does not believe that something that is contrary to their life experience can happen, just as the wealthy and intelligent Jews did not heed the warning signs when Hitler came to power.

    More ended up in the gas ovens then escaped the country while there was still time. The big question is really who will implode first, Europe or the U.S. and while many believe China will save the world economy, do not forget that they are repeating many of the mistakes of the west in their economic planning. The Yuan is also a “fiat currency” and in time will suffer the same fats as the dollar and Euro.

    He who has the gold makes the rules.

  • Peter

    Thank,s god that mentally i am prepared for the worse, i lived in Cuba in 1990 and we all survive with nothing, was very difficult but at least i learn some skills that can help me in the future, good look to all of you, will be neccessary.

  • David

    Along with the essentials that are needed for sustenance, don’t be so foolish as to not allow for some way to PROTECT what is yours. If your faith is strong enough to stop bullets, you’ll be fine. For those of us that may have an unknown breach in our faith, watch where you go and remember where you’ve been.

  • Pat

    “The Goose That Laid The Golden Egg” – This is really the best time to be alive if you know how to take advantage of the opportunities placed at your feet. You see, knowledge is relative. It is not absolute. The dumber others become the smarter you become. Right now the world is really dumb. That means that for once in your life every dream you ever had can come true. I am going to tell you the secret. For example, 99% of the population will be caught with no financial ability whatsoever. That means incredible opportunity for you and me. But you have to know how to arrange things so that you win. Here are just a few things we know:
    1. It does not matter what everyone else is doing. What matters is what you do.
    2. There is a very limited supply of gold
    3. Now countries and central banks are buying as much gold as possible and giving you paper currency instead. Paper promises
    4. Soon some of the worlds population will not be able to hold gold and have to give it over to the rich and governments in exchange for paper promises
    5. The rich and the governments of the world will do anything to convince you to accept paper currency instead of real money
    6. A company I work for will sell you small affordable bits (certified bars) of gold by the gram at spot. In other words our profit will be in the price unlike coin dealers who have to add their price on top of the spot price. Every middleman has to get his cut.
    7. We own our own gold mine and refinery. Therefore, our profit is already in the actual gold price. We have no middleman.
    8. Plus we will gladly buy back the gold if for any reason you need to sell it
    9. Gold is anticipated to go as high as $5000 per ounce by next year. Today its at $1750
    10. And if you are real smart, store your gold in our Swiss vault for free or take delivery
    11. Laugh all the way to the vault as you beat these greedy people at their own game

    Now, you see why I am so happy. While everyone else is crying I am laughing because I know the secret. And I have a credible job. Not only can you buy the gold from us but you can get in on the action and be a part of the boom that is taking place for no money. That’s right. It cost you nothing to work for us. Now instead of saying that you are looking for work you will be able to say that you are a “gold distributor”. How cool is that? Thank me later. Right now understand how this works, how to win and that someone you don’t even know told you about “The Goose That Laid The Golden Egg”.

  • Hosanna

    I have stored up as many things as I intend to store. As of two weeks ago I decided to take a different tack. I am eating very little food, mainly sprouts, soaked grains and seeds, fruit, and a few supplements. I have already lost 8 unwanted pounds. To some people this may seem strange, but should food shortages become a problem I want to be content with less. My body is the only possession I am sure to own (provided it is still alive) in any event. The sooner I accustom it to spartan supplies the less I need society or assistance. I read instead of watch tv, I stay home and don’t use gas. I am mentally preparing myself all the while enjoying each day even more than ever before because I am enjoying what I have instead of looking outside for new thrills. I intend to live this way from now on.

    • Michael

      That is a really good point.

      Learning to eat less will not only make your supplies last longer, it will also make you healthier!


    • Save the Republic

      Very good point. I have been thinking the same way, and everyone preparing for the worst should consider it too. Eating healthier and less, and exercising, has numerous benefits for the upcoming difficult times:

      1)Save money by not needing as much food, 2)Get yourself into physical shape to handle more rigorous activity for survival under extreme circumstances, 3)Help you mentally to remain calm and think clearly, because you will have more self-confidence, and your cardiovascular system will be more efficient at replenishing oxygen to your brain, 4)Help keep you from spending money by occupying some of your time exercising

    • Maria

      So are we…my husband and I. Our children are not eating less, but we are teaching them to not waste resources…food, water, etc. We are also eating healthier foods…homegrown or locally grown…eliminating processed foods…one by one.

      I am ashamed at how much we used to waste while people in the world died from starvation and lack of clean water.

    • Marilynn

      I like your tack a lot. Very practical and realistic! Last year after having been a vegan for a few years, I eliminated the last addiction: caffeine. That was painful for 48 hours; the pain was evidence I was taking the right course. My days are filled with much greater calm and peace, and the grocery bill is amazingly low. It is also worthy of note that Bill Clinton (despite how we may view him otherwise) has embraced a plant-based diet to regain coronary health. Google Caldwell Esselstyn, MD. May God grant us wisdom and humble strength.

  • Ryan

    GOLD markets crashed with the rest today. not a good sign at all, People are taking there money out at an alarming rate.

  • 007

    The market is rolling up and down in dramatic swings. It did the same thing just before the market crash of 1929. Welcome to the Obama depression.

  • Pat

    If you think the gold market crashed yesterday you are mistaken. I have been involved in major transactions such as gold and stock acquisitions for over 30 years. I study this stuff everyday all day. This is my profession.

    Its true that gold is being wildly manipulated by the powers that be so that you will accept paper while they take the actual gold metal.

    Let’s understand a few facts first. Federal Reserve Notes are not money. They are promises to pay. That is why and how we got into this financial mess in the first place. You were tricked into believing that fiat currency, paper money could take the place place of gold. It can not.

    I can not go into detail here but if you go to this blog and read the articles you will get a better understanding of what is happening.

    The idea is to keep the public accepting mere paper so that the rich, banks and governments can take the gold. Here is what we know as fact:

    1. The Chinese have a huge demand for gold and are buying as much as they can at $17 an ounce mark up or premium.

    2. Donald Trump recently did a transaction where he wanted gold instead of paper currency.

    3. In the U.S. people see gold as a trading commodity similar to the stock market. But in reality gold never loses value.

    4. In the last 10 years gold has gone up 800%’ This is way more than any paper investment available to the public.

    5. Analyst including major wall street concerns all forecast gold to be $2000 to $10,000 per ounce by next year.

    6. The incredible rise in gold values is not because of an increase in the price of gold but due to the decline in value of the dollar.

    7. Finally my friends do yourself a favor and stop depending on TV for your information. They are only in existence to keep you confused and accepting paper currency for your labor.

    Please take the time to learn about gold for free so that you can survive the coming economic collapse. And if you like join us on our mission to inform.

    • Marilynn

      Pat: A little education, please:
      What happened when FDR issued an executive order making it illegal for private citizens to own gold? Did the government make any attempt to seize privately-owned gold?

  • Justin Kase

    Silver traded below $33 this morning for the forst time since the lows in May and June.

    It might be time to start cashing in bear ETFs and slowly begin buying physical silver (or gold if you’ve $$$$).

    Likely there is more money to be made betting against stocks, but i’m less sure there is more silver downside.

  • Justin Kase

    $32 Silver lasted only a few hours before it headed down to bounce off of $30.

    Gonna tiptoe in and buy some here. Was really expecting an earlier and stronger bounce. Since i’ve proven the bottom is unknown by me, i’ll continue to buy a little at a time.

  • proper

    It is a logical mention that- “According to CNN, the number of bets against the S&P 500 rose to the highest level in a year last month.” Falling of GDP by a further 7.3% has made this prediction more possible. I also understand the condition of Italy and Greece.For China break up of foreign exchange forwards and swaps trading with several European banks has made the prediction more strong. So all the signs are really very logical, and i am looking for the final result.

  • Jam J

    Times are going to continue to get harder and harder.

    • Glen Checkley

      I agree. No end really in sight regarding this mess.

  • Glen Checkley

    All the big players have made their money by abusing power. Governments are all leveraged to the hilt. Now we all suffer for their egos and greed.

  • Sgt shut up

    Someone help me here. If you have gold in your possession and go to sell it they pay you 50 percent of what its worth. If you own it on paper and the shit hits the real fan youve got nothing. I think I will just buy bullets.

    • Justin Kase

      It is good to have ammo, but how much value in ammo can you carry? It is also good to have water, food, fuel, guns, gas, medical, and many other supplies. IMHO most of these things should be in place before considering gold and silver purchases, unless the dollar is crumbling faster than lately.

      What to do when your storage space is full? If you must leave, how much can you take? You have cash out of the bank, but now it is losing value rapidly? In answer, consider gold and silver.

      In my area, there are reputable coin dealers. Depending on market action, transaction premiums range from 0-10% on popular coins. Obviously this is a cost to minimize. If there are no reasonable coin dealers in your area, and no barter network that accepts gold and silver, then this might not work for you.

      Gold has three values to me. First it is a hedge in case the dollar goes hyper. Second, one can carry quite a bit of value per weight and space. Third, if you bury some for your grandchildren, it might be worth something by the time they get it; likely a lot more than dollars. Silver is bulky, but can be used for change in scenario one, and might be useful in some communities for barter.

      Lastly, gold and silver, like cash, present security risk. Access to safe deposit boxes might be restricted in a crises. The government could require turn in of gold and silver at arbitrary prices. Someone could steal your coin dealer’s customer list and come “prospecting”. Keeping PMs at home could be dangerous, and good metal detectors are widely available, so plan accordingly.

  • Fools buy gold. Wise grow food.
    Who cares what the gold price is?
    1kg of food to cost 1kg of gold.

    If everyone is wise enough, then forget gold altogether. Everyone grow food. Imagine FREE fresh organic food wherever we are!

    We have a choice:
    Everybody photocopy money or make everything FREE.

    • no, its 1kg of food for 1kg of paper money!but thats what i hope everyone will do is grow a garden

  • Marilynn

    Pat: A little education, please:
    What happened when FDR issued an executive order making it illegal for private citizens to own gold? Did the government make any attempt to seize privately-owned gold?

    • Jim

      Marilynn the US gov. did not go out looking for owners of gold, many people did not turn it in. But, it is suspected that this time they may make it illegal to buy or sell gold, so everything will have to be done on the black market. A few countries have already made stides to forbid the ownship of gold. They have to stop people from wanting gold and silver to make the dollar look good. Listen to Celente, he is a pro at predictions and in gold.

  • Bob

    All you need to know is now points 1 & 2 affect the market. By assuming that the majority of people know what is going to happen in the future and acting on that information is a sure way to the poor house.

    1&2 are called investor sentiment and has long been used as a inverse indicator. When the majority but it is close to the selling zone. When the majority are calling the market short it is close to the buy point.

    Yes I believe we are in big trouble and I have called the market top, but this kind of sentiment tells me to expect a bounce before the next leg down, and that bounce will be painful for those who are betting on the fall.

  • Pastor Moses

    this is a sure sign of the endtime because the Bible already have it spelt out in Matthwew 24 prophetically that it will happen. Let us all return back to the kingdom investment because there when men shall be saying there is a casting down, the princes and emperors will be saying there is a lifting up. Jesus is the answer

  • Poriya

    Yes, Pastor Moses is on the money (excuse the pun) here…Be sure your spiritual house is in order. And the order is: Seek first the Kingdom of God (includes God) and all these things will be added to you (worldly things like money/needs met, etc.)

  • Peter

    Ask not what your country can do for you; but ask what you can do for yourself and for your country.

Finca Bayano

Panama Relocation Tours



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