Is The Federal Reserve Actually TRYING To Cause A Stock Market Crash?

The Federal Reserve has decided not to come to the rescue this time.  All of the economic numbers tell us that the economy is slowing down, and on Wednesday Fed Chair Jerome Powell even admitted that economic conditions are “softening”, but the Federal Reserve raised interest rates anyway.  As one top economist put it, raising rates as we head into an economic downturn is “economic malpractice”.  They know that higher rates will slow down the economy even more, but it isn’t as if the Fed was divided on this move.  In fact, it was a unanimous vote to raise rates.  They clearly have an agenda, and that agenda is definitely not about helping the American people.

Early on Wednesday, Wall Street seemed to believe that the Federal Reserve would do the right thing, and the Dow was up nearly 400 points.  But then the announcement came, and the market began sinking dramatically.

The Dow Jones Industrial Average lost 720 points in just two hours, and the Dow ended the day down a total of 351 points.  This is the lowest that the Dow has been all year, 60 percent of the stocks listed on the S&P 500 are in bear market territory, and at this point approximately four trillion dollars of stock market wealth has been wiped out.

We haven’t seen anything like this since the last financial crisis.  This is officially the worst quarter for the stock market since the fourth quarter of 2008, and it is the worst December that Wall Street has experienced since 1931.

It is insanity to raise interest rates when stocks are already crashing, but the Federal Reserve did it anyway.

They knew what kind of reaction this would cause on Wall Street and in other global markets, but that didn’t stop them.  The financial world is in utter turmoil, and this move by the Fed has definitely added fuel to the fire.

Could it be possible that they actually want a stock market crash?

Some are suggesting that the reason why the vote was unanimous was because they wanted to send a “strong signal” to President Trump.  He has been extremely critical of the Federal Reserve in recent weeks, and this could be a way for the Fed to show Trump who is really in charge.

They are calling this “the Trump economy”, but that is simply not true.  And when Barack Obama was in the White House, it wasn’t “the Obama economy” either.  Ultimately, it is the Federal Reserve that is running the economy, and they fiercely guard their independence and their authority.

President Trump knows that the only way that he is going to win in 2020 is if the economy is doing well, and he also understands that higher interest rates will slow the economy down.

So essentially the Federal Reserve has a tremendous amount of political power in their hands.

During the Obama era, the Fed pushed interest rates all the way to the floor and kept them there for many years.

But now the Federal Reserve has raised interest rates seven times since Donald Trump took office, and four of those rate hikes have been under current Fed Chair Jerome Powell.

Needless to say, it certainly doesn’t take a lot of imagination to figure out how Donald Trump is feeling about Powell at this moment.

Meanwhile, we continue to get more indications that the U.S. economy is heading for difficult times.  Just consider the following news about FedEx

FedEx shares are plunging after what Morgan Stanley called a “jarring” cut to its annual forecasts, suggesting global growth is slowing far more than most expect – in fact, the bank hinted at the possibility of a “severe recession” unfolding – and prompting expectations of an “uber-dovish hike” by the Fed.

The global logistics bellwether slashed its outlook just three months after raising the view, reflecting an unexpected and abrupt change in the company’s view of the global economy amid rising trade tensions between the U.S. and China. Not only were the cuts were deeper than the Street expected according to Morgan Stanley analyst Ravi Shanker, but everyone is pointing to the following comment from the press release: “Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near-term.”

To see the term “severe recession” used in such a context is more than just a little bit alarming.

The last time the U.S. economy went through a recession, millions of Americans lost their jobs and we saw a wave of mortgage defaults unlike anything we had ever seen before in modern American history.

Are we about to go through something similar?

Earlier today, a CNN article also used the term “recession”, and it discussed the fact that investors now want big corporations to focus on paying down their debts instead of buying back shares of stock…

Fears of an economic slowdown — or even recession — have turned a spotlight on the debt that businesses piled up during the past decade, when borrowing costs were historically low.

For the first time since the Great Recession, investors want companies to prioritize paying down debt rather than investing in the future or share buybacks and dividends, according to a Bank of America Merrill Lynch survey of global fund managers.

But stock buybacks are one of the only things that has been propping up the stock market.  The only way for the bubble to continue is for corporations to go into dizzying amounts of debt in order to fund massive stock buybacks, because the Federal Reserve clearly does not intend to support the markets right now.

At least for the short-term, the Federal Reserve could have calmed the markets and encouraged economic activity by leaving interest rates alone.

In the end, they decided not to do that, and that makes one wonder what they are really trying to achieve.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Top Economist: “If The Fed Raises Interest Rates Tomorrow They Should All Be Fired For Economic Malpractice”

The Federal Reserve is responsible for creating the stock market boom that we have witnessed in recent years.  Are they now also setting the stage for a stock market bust?  After hitting an all-time high earlier this year, the Dow has plunged more than 3,000 points from the peak of the market, and it would appear that it would be extremely irresponsible for the Fed to raise interest rates in such a chaotic environment.  In addition, evidence continues to mount that the U.S. economy is slowing down, and everyone knows that raising interest rates tends to depress economic activity.  So it would seem that it would not be logical for the Federal Reserve to raise interest rates at this time.  In fact, economist Stephen Moore told Fox Business that if the Fed raises interest rates “they should all be fired for economic malpractice”

“The Fed has been way too tight. They made a major blunder three months ago with raising the rates. It’s caused a deflation in commodity prices. And I will say this, David, if the Fed raises interest rates tomorrow they should all be fired for economic malpractice.”

If the Federal Reserve raises interest rates and indicates that more rate hikes are coming in 2019, it is quite likely that the markets will throw another huge temper tantrum.

But as Jim Cramer has noted, if the Federal Reserve make the right choice and leaves rates where they currently are, we could potentially see a significant market rally…

“Today was a dress rehearsal for the kind of rally we can get if the Fed does the right thing tomorrow and repudiates the idea that we need a series of rate hikes in 2019, not just one more tomorrow,” Cramer said Tuesday. “If we get the Fed on board, expect more positive action like we had this morning before the market gave up much of its gains.”

Unfortunately, there is a factor that is complicating things.

In recent weeks, President Trump has been extremely critical of the Federal Reserve and Fed Chair Jerome Powell.  If the Fed decides to leave interest rates where they are, that could be interpreted as them giving Trump exactly what he wants, and it is likely that they do not want to be viewed as siding with Trump.

This is yet another reason why we need to end the Fed.  The Fed has become just another player in the game of politics, and the truth is that the Federal Reserve is a deeply un-American institution.  Our founders intended for us to have a free market capitalist system, but instead we have an unelected panel of central planners setting our interest rates and running our economy.

Since the Federal Reserve was created in 1913, there have been 18 major economic downturns, and now we are heading into another one.  Central banking manipulation endlessly causes boom and bust cycles, and hopefully this time around the American people will finally decide that enough is enough.

As losses on Wall Street mount, hedge funds are starting to go down like dominoes, and that is going to cause huge problems for some of our largest financial institutions.  For example, we just found out that Citigroup could potentially lose 180 million dollars due to bad loans that it made to a prominent Asian hedge fund

It’s not just hedge funds that are blowing up left and right: so are the banks that are lending them money.

Citigroup is facing losses of up to $180 million on loans made to an unnamed Asian hedge fund which saw major losses on its FX trades Bloomberg reports citing a person briefed on the matter. The hedge fund and Citi “are in discussions on the positions and how they should be valued” which is usually a bad sign as when it comes to FX the mark to market is, at least, instantaneous. Bloomberg adds that the situation is fluid and the eventual losses may end up being smaller depending on how the trades are unwound.

We haven’t seen anything like this in 10 years, and if the Fed raises interest rates this new financial crisis could begin to escalate quite rapidly.

At this point, even former Fed chair Alan Greenspan is urging investors to “run for cover”

The former Federal Reserve chairman who famously warned more than two decades ago about “irrational exuberance” in the stock market doesn’t see equity prices going any higher than they are now.

“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.

He added that markets could still go up further — but warned investors that the correction would be painful: “At the end of that run, run for cover.”

The markets were calmer on Tuesday because everyone was kind of waiting to see what the Fed would do on Wednesday.

The decision should be obvious, but unfortunately things are never that simple.

We live in very uncertain times, and the shaking of our financial system has begun.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Democrats Are Drooling With Glee Over 2 New Legal Developments That They Believe Could End The Trump Presidency

There never was any “collusion with Russia”, but the Mueller investigation opened the door for investigators to keep turning over rocks, and it was inevitable that they were eventually going to find something.  In America today, we are governed by literally millions of laws, rules and regulations, and nobody has more laws that they must follow than the president of the United States.  So if the Deep State really wants to get the resident of the White House, there are lots of ways that they can do it.  Over the past several days, there have been a couple of new legal developments that potentially represent great threats to the Trump presidency, and Democrats are drooling with delight.

The first development involves a potential violation of campaign finance laws.  In August, lawyer Michael Cohen pleaded guilty to arranging payments to two women “at the direction” of Donald Trump.  A $130,000 payment was made through a shell company to Stormy Daniels, and it was arranged that a $150,000 payment would be made to former Playboy model Karen McDougal through American Media Inc., which is the parent company of the National Enquirer.  It was ruled that these payments were made “for the principal purpose of influencing” the election, and it is one of the reasons why Michael Cohen is going to prison for three years.

Personally, I am quite skeptical that these hush money payments constitute “campaign expenses” which must be reported, but this is the interpretation that is being pushed by the Deep State, and it is being widely accepted by the mainstream media and by members of both political parties.

In August 2015, there was a meeting between Michael Cohen, American Media Inc. CEO David Pecker and “at least one other member of the campaign” during which a plan to “catch and kill” negative stories about Trump was discussed.  According to NBC News, it has been confirmed that the “other member” in the room was Trump himself…

As part of a nonprosecution agreement disclosed Wednesday by federal prosecutors, American Media Inc., the Enquirer’s parent company, admitted that “Pecker offered to help deal with negative stories about that presidential candidate’s relationships with women by, among other things, assisting the campaign in identifying such stories so they could be purchased and their publication avoided.”

The “statement of admitted facts” says that AMI admitted making a $150,000 payment “in concert with the campaign,” and says that Pecker, Cohen and “at least one other member of the campaign” were in the meeting. According to a person familiar with the matter, the “other member” was Trump.

With Cohen and Pecker now both cooperating with federal investigators, Trump could potentially be in a huge amount of trouble, and the left is loving it.

As a former assistant U.S. attorney explained to NBC News, it would essentially be a slam dunk to prove “a conspiracy to commit campaign finance fraud”…

Daniel Goldman, an NBC News analyst and former assistant U.S. attorney said the agreement doesn’t detail what Trump said and did in the meeting. “But if Trump is now in the room, as early as August of 2015 and in combination with the recording where Trump clearly knows what Cohen is talking about with regarding to David Pecker, you now squarely place Trump in the middle of a conspiracy to commit campaign finance fraud.”

But once again, that is only true if the hush money payments actually constituted “campaign expenses”, and it is my opinion that they do not.

Meanwhile, federal authorities have also opened up a new investigation into potential corruption by President Trump’s inauguration committee.  The following comes from USA Today

The investigation is being led by federal prosecutors in Manhattan and is examining whether donors gave money in return for access to Donald Trump and his administration, the Wall Street Journal and CNN reported.

The Journal, citing unnamed officials, reports the probe is in its early stages but aims to determine whether some of the donors to Trump’s $107 million inauguration fund attempted to gain influence within the administration on policy decisions, something that could violate federal corruption laws.

This new investigation never would have occurred if federal authorities had not already been investigating Michael Cohen.

Reportedly, they came across some potentially incriminating information when they raided his home, office and hotel room in April

During the April raids on Cohen’s home, office, and hotel room, federal investigators discovered a taped conversation between Cohen and Stephanie Winston Wolkoff, who worked with the inaugural committee, the WSJ reported.

The contents of the recording are unclear but Wolkoff, according to the Journal, voiced concerns over how some of the inaugural funds were being spent.

During the Nixon administration, the Department of Justice ruled that a sitting president could not be indicted, but now there are quite a few Democrats that are calling for that ruling to be “reevaluated”.  One of those Democrats is Representative Adam Schiff

‘I think the Justice Department needs to re-examine that OLC opinion, the Office of Legal Counsel opinion, that you cannot indict a sitting president under circumstances in which the failure to do so may mean that person escapes justice,’ Schiff told CNN on Wednesday, hours after Donald Trump’s longtime lawyer Michael Cohen pleaded guilty to breaking campaign finance laws and other matters.

In the short-term, it is probably unlikely that Trump will be indicted, and so if Democrats want to get rid of him they will need to go down the road of impeachment.

Now that Nancy Pelosi and the Democrats have taken control of the House, they could probably pull off a vote to impeach Trump.  But the tricky part would be the Senate, because the Republicans still have a majority there.

But it is a very small majority, and it would only take a handful of Republican votes to remove Trump from office.

Let us hope that the Democrats do not decide to pursue impeachment, because that would only create even more division in a country that is already greatly divided.

We live in very troubled times, and unfortunately things are likely to become even more troubled in 2019.

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

Wall Street Seems To Believe That Endless Gridlock And Political Turmoil Will Be Good For America

It is difficult not to admire the relentless optimism on Wall Street.  A divided Congress is going to guarantee two years of gridlock and political turmoil in Washington, but many in the financial community are choosing to interpret the election results as a positive sign.  They remember the “gridlock” during the Obama years, and they are hopeful that the next couple of years will be at least somewhat similar.  The Dow Jones Industrial Average shot up 545 points on Wednesday, and that was the largest post-midterm rally that we have seen in 36 years.  Stock prices normally go up the day after midterm elections, but Wednesday’s rally was definitely unusual

Wednesday’s post-midterms rally was larger than the average gain that follows the contests. Goldman Sachs noted the S&P 500 has averaged a gain of 0.7 percent from the day before the elections to the day after midterms. Wednesday marked the biggest post-midterms gain for both the Dow and S&P 500 since the day after the 1982 contests, when the indexes surged 4.3 percent and 3.9 percent, respectively.

To a certain extent, it is likely that investors were greatly relieved that the worst case scenario did not play out.  As I noted on Monday, a blue wave that would have resulted in Democrats taking control of both houses of Congress would have meant big trouble for Wall Street, and many are very thankful that we were able to avoid that outcome

Investors also avoided the most-feared Wall Street outcome, a so-called “blue wave,” or Democratic sweep of both chambers of Congress. That could have put the president’s economic policies under assault and boosted the odds of a Democratic House pushing for Trump’s impeachment.

“Everything played out according to script,” Stephen Innes, head of Asia trading at Oanda, told USA TODAY. “The Trump agenda is not in serious jeopardy.”

But are Tuesday’s results actually good news for Wall Street?

The optimists are pointing to history as evidence that gridlock in Washington is typically good for investors…

Legislative gridlock has historically been good for financial markets. In fact, in years with a Republican president and a Republican-controlled Senate and Democrat-run House in place, the Standard & Poor’s 500 stock index has posted average gains of 10.8 percent, according to data from Strategas Research Partners.

“A split Congress means that gridlock is more likely, and that’s been fine for markets in the past,” says Kate Warne, investment strategist at Edward Jones.

Unfortunately, that is not a fair comparison.

The times that we are moving into are not going to be anything like the “gridlock” that we witnessed during the Reagan, Clinton and Obama presidencies.

During the Obama era, Republican leadership got along with the White House fairly well.  And even though there was often some wrangling, Republicans almost always gave Obama most of what he wanted when it came to budget deals and other critical pieces of legislation.

Sadly, the next two years are going to be much different.  It will be the political equivalent of trench warfare, and the carnage is going to be off the charts.

Top Democrats in the House are already threatening to hit the Trump administration with a wave of subpoenas, and Trump is warning that if that happens he will adopt a “war posture”.  Throughout his career, Trump’s philosophy has always been that if somebody hits him he is going to hit them back even harder.

I want you to imagine the most graphic battle scene that you have ever watched on television, because that is what the coming years will be like.  There will be an all-out attempt to take down Trump and everyone around him, and Trump will respond by going after everyone that he perceives to be an enemy.  In the end, a lot of politicians are not going to make it, and our system of governance will be badly damaged.

And the truth is that we aren’t going to have to wait long for things to erupt.  According to the Baltimore Sun, “political war” has already erupted…

Washington plunged into political war on Wednesday in the wake of a split decision by voters in the midterm elections, with President Donald Trump ousting his attorney general and threatening to retaliate against Democrats if they launch investigations into his personal conduct and possible corruption in the administration.

The rapid shift to battle stations signaled the start of what is likely to be two years of unremitting political combat as Trump positions himself for reelection. For the first time, Trump will be forced to navigate divided government as Democrats who won the House pledge to be a check on his power and face pressure from their liberal base to block him at every turn.

The left has been holding back for months so that they would not alienate any potential voters, but now that the midterm elections are over they are free to start causing chaos again.

If you do not believe that we are headed for great political conflict, I would like for you to consider what has already happened within the past 24 hours…

-Major progressive groups such as MoveOn.Org announced that they are organizing “response events” in 900 U.S. cities on Thursday to protest the firing of Attorney General Jeff Sessions.

-The White House pulled CNN reporter Jim Acosta’s press credentials.

-DC Antifa published the home addresses of Tucker Carlson, Ann Coulter, Sean Hannity and other prominent conservatives.

-A mob showed up outside Tucker Carlson’s home and warned him that they “know where you sleep at night” and ordered him to “leave town”.

As I have warned so many times, hatred and anger are growing to unprecedented levels in America.

Many had been hoping that the midterm elections would resolve much of the political tension in this country, but instead it looks like things are going to continue escalating quickly.

And it isn’t going to take very much at all to unleash major civil unrest.  The left already hates Trump more than any other president in American history, and one really bad move could set off an explosion of anger unlike anything we have ever seen before.

My friends, these are dark times, and I have a feeling that they are about to get a whole lot darker.

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

And auto sales are way down all over the country

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China

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

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

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

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

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

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

The Federal Reserve

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

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

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

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

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

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

Forced Selling

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

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

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

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

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

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

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

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

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

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

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

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

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

Is The Federal Reserve Trying To Sabotage Trump? Stocks Fall Again As Investors Are Rattled By Fed Comments

Could it be possible that the Federal Reserve is attempting to influence the outcome of the upcoming midterm elections?  Just weeks before Americans will go to the polls, the Fed has been making headline after headline with talk about interest rate hikes.  And they very well understand that interest rate hikes will rattle investors and slow down the economy.  In fact, every Fed rate hiking cycle since 1957 has ended in either a stock market crash or a recession.  So could the Federal Reserve be doing this on purpose in order to sabotage Donald Trump and the Republicans?  Nobody is really asking this question, but perhaps we should be.

For a while there it looked like a good rally was cooking on Wall Street, but then news about future Federal Reserve interest rate hikes sent stocks tumbling on Wednesday

The Dow Jones Industrial Average fell Wednesday in volatile trading after a summary of the Federal Reserve’s most-recent meeting showed the central bank was leaning toward more rate hikes moving forward.

The 30-stock index dropped 91.74 points to 25,706.68 as sharp losses in IBM offset strong gains in Goldman Sachs. The S&P 500 and Nasdaq Composite closed just below the flatline at 2,809.21 and 7,642.70, respectively.

And the Federal Reserve is also being identified as the reason why Asian stocks tumbled overnight

Stocks in Asia were broadly lower on Thursday morning, as a Fed report hints at more rate hikes ahead.

The Greater China markets were in largely negative territory in early trade. The Shanghai composite dropped by 1.53 percent while the Shenzhen composite fell by 1.914 percent. Hong Kong’s Hang Seng index also traded slightly lower.

As I have explained many times, nobody has more control over the economy than the Federal Reserve does, and nobody has more influence over the financial markets than the Federal Reserve does either.

If the American people truly understood the Federal Reserve, there would be “End the Fed” protests in every city in America tomorrow morning.

What is troubling investors so greatly at the moment is the fact that the Fed minutes that were just released clearly indicate that more interest rate hikes are coming in future months

Federal Reserve officials remain convinced that continuing to gradually increase interest rates is the best formula to preserve a steady economy, according to minutes released Wednesday of the central bank’s most recent policy meeting.

That may not please President Donald Trump, who has been vocal in his criticism of the central bank’s actions.

President Trump has been criticizing the Fed recently because he understands that many Americans vote based on how their pocketbooks are doing.  If the economy is doing well, his re-election chances go up, but if the economy tanks there is a very good chance that he could lose in 2020.

And if stock prices really start to tumble over the next few weeks, that would really help Democrats in the upcoming mid-term elections.

Of course it isn’t just President Trump that has been criticizing the Fed lately.  In fact, CNBC’s Jim Cramer is literally “begging” the Federal Reserve to slow down the pace of future interest rate hikes

“I’m not saying the Fed’s gone crazy. I’m not saying they need to stop tightening because it’s bad for the stock market. I don’t care about that. I’m simply begging [Fed Chair] Jerome Powell and the rest of the Open Market Committee to take things one rate hike at a time,” he said. “Because from what I’ve seen so far this earnings season, it might make sense to put next year’s three planned rate hikes on hold until we know if the nascent strength is dissipating before our very eyes.”

Jim Cramer can see what all of the rest of us can also see.  U.S. economic activity appears to be slowing down substantially, and major volatility has returned to the financial markets.

If the Dow Jones Industrial Average suddenly falls a couple of thousand points, it is entirely possible that the Federal Reserve could change course.

But once again, we must consider the possibility that they actually want to cause chaos in order to harm Donald Trump politically.

At one time such a notion would have been unthinkable, but we have entered a time when lots of things that were once unthinkable have become reality.

Today, we have news anchors calling the president of the United States all kinds of things on the air, we have leading members of the opposition party openly calling for violence, and we have conservatives and progressives literally fighting each other in the streets.

The elite are desperate to get rid of Donald Trump, and without a doubt the Federal Reserve’s recent actions have been bad for the President.  That doesn’t necessarily mean that malice is involved, but we cannot entirely rule out that possibility either.

But if the Fed really does want to alter the results of the upcoming midterm elections, they have got some work to do.  According to the latest map from Real Clear Politics, it appears likely that the Republicans will keep their Senate majority and may even expand it.

And even though it looks like the Democrats will definitely make gains in the House, a late Republican surge has altered the landscape.  It is not the most likely result, but there is now a possibility that Republicans could also retain control of the House, and that would be absolutely disastrous for the Democratic Party.

Let us not forget, however, that things can change dramatically in politics in just a few days.

With just a few weeks to go before the 2016 election it looked like Hillary Clinton would win by a landslide, and we all saw what happened.

One major event could change everything, and without a doubt this is going to be one of the most interesting midterm election cycles in ages.

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

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

Do NOT follow this link or you will be banned from the site!