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The Stock Market Will Start To Fall In July? The Dow Plummeted More Than 500 Points Last Week

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Falling - Public DomainWas last week a preview of things to come? There are quite a few people out there that believe that the stock market would begin to decline in July, and that appears to be precisely what is happening. Last week, the Dow Jones Industrial Average fell by more than 530 points. It was the biggest one week decline that we have seen so far in 2015, and some are suggesting that this could only be just the beginning. By just about any measurement that you might want to use, the stock market is overvalued. But we have been in this bubble for so long that many people have come to believe that this is “the new normal”. In fact, earlier today someone that I know dropped me a line and suggested that our financial overlords may be able to use the tools at their disposal to get this current bubble to persist indefinitely. Unfortunately, the truth is that no financial bubble ever lasts forever, and right now some very alarming things are starting to happen behind the scenes. Over the past couple of weeks, the smart money has been dumping stocks like crazy, and the lack of liquidity in the bond markets is beginning to become acute.  Could it be possible that another great financial crisis is just around the corner?

Last week took a lot of investors by surprise. The following is how Zero Hedge summarized the carnage…

-Russell 2000 -3.1% – worst week since Oct 2014 (Bullard)
-Dow -2.8% – worst week since Dec 2014
-S&P -2.1% – worst week since Jan 2015
-Trannies -2.8% – worst week since Mar 2015
-Nasdaq -2.2% – worst week since Mar 2015

The talking heads on television were not quite sure what to make of this sudden downturn. On CNBC, analysts mainly blamed the usual suspects…

“I think the market’s very much concerned about the commodity (decline),” said John Lonski, chief economist at Moody’s. “The contraction in China manufacturing activity is gaining momentum and the credit market has yet to signal that rates are not about to go higher.”

He also noted a surprising decline in new home sales and continued lack of revenue growth in earnings. Nearly all the commodities are in a bear market and gold and crude settled at lows Friday.

“You’ve got some major growth concerns and that is what’s weighing on investors minds,” said Peter Boockvar, chief market strategist at The Lindsey Group.

And without a doubt, there are some new numbers that are deeply troubling for Wall Street. For example, it is being projected that S&P 500 companies will collectively report a 2.2 percent decline in earnings for the second quarter of 2015. If this comes to pass, it will be the first drop that we have seen since the third quarter of 2012.

The biggest reason for this decline in earnings is the implosion of U.S. energy companies due to the crash in oil prices. The following comes from CNBC

Thanks to a collapse in the price of oil, the energy sector is slated to report a monster 54 percent drop in earnings and 28 percent swoon in revenue, compared to the second quarter in the year prior.

Hmm – unlike what so many others were saying initially, it turns out that the oil crash is bad for the U.S. economy after all.

But just like at this time of the year in 2008, most people fully expect that everything is going to be just fine. So many of the exact same patterns that we witnessed the last time around are playing out once again, and yet most of the “experts” refuse to see what is happening right in front of their eyes.

When things crash this time, it won’t just be stocks that collapse. As I have been writing about so frequently, we are also headed for an implosion of the bond markets as well. The following comes from Dr. David Eifrig

In the U.S. Treasury securities market, financial-services giant JPMorgan Chase estimates that five years ago, you could move about $280 million worth of Treasury securities before your trades moved the market’s price. Now, that’s down to $80 million… a decline of more than 70%.

When a panic sets in, reduced liquidity can cause big swings in market prices.

There is that word “liquidity” again. This is something that I have repeatedly been taking about. Just check out this article from a little over a month ago. A bond is only worth what someone else is willing to pay for it, and if the market runs out of buyers that can cause seismic shifts in price very rapidly. Here is more from Eifrig

In a run-of-the-mill bear market, you just have a downward trend… When enough investors are selling bonds, it drives down prices. Falling prices lead more investors to start selling. We see that all the time.

A liquidity crisis goes even further. It’s like a classic run on a bank… Without sufficient liquidity, the sellers don’t just see lower prices… they see no prices. Since no one wants to buy bonds at this particular time, the price for them effectively becomes zero.

There has been a lot of speculation about what will happen in the second half of 2015.

We only have a little over five months to go in the year, so it won’t be too long before we see who was right and who was wrong.

Our perceptions of the future are very much shaped by our worldviews. All the time, I get “Obamabots” that come to my website and leave comments on my articles telling me how Barack Obama has “turned the economy around” and has set the stage for a new era of prosperity in America.

Despite all the evidence to the contrary, they choose to believe that things are in great shape because that is what they want to believe. Just check out the results from one recent survey

While 55 percent of Democrats reported feeling positive about the economy, for example, just 25 percent of Republicans felt the same from March 25 to May 27.

When asked if they thought the economy would improve over the next 12 months, 53 percent of Democrats said yes. Only 23 percent of the Republicans in the survey agreed.

The same perception gap extends to the far future, with 41 percent of Democrats believing that the next generation will be better off than their parents, and just 24 percent of Republicans saying the same.

To me, those numbers are quite striking.

Many Democrats very much want to believe that things are getting better because Barack Obama is in the White House.

Many Republicans very much want to believe that things are totally falling apart because Barack Obama is in the White House.

So who is right and who is wrong?

Please feel free to share what you think by posting a comment below…

  • Alwaystomorrow

    The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015

    Published 6/25/2015

    159 days until 12/31/2015.

    For fun, lets do a count down every day until the end of 2015 and see just what happens.

    • mr. jingles

      158 days till Alwaystomorrow gets eaten by starving neighbors.

      For fun, let’s list other ways Alwaystomorrow can die when the economy collapses comes since there will be no money, food, water, gas ect.

      • spanky

        Ha ha ha ha ha ha ha I don’t think he’ll taste too good. His mamma told me he’s spoiled!

        • Mike Smithy

          I’ll bet he tastes like chicken.

          • Stop Republican Obstruction

            I eat chicken nearly every day.

          • Mike

            If you stop Democrat totalitarianism.
            I wish your title was right. There’s absolutely no republicans (accept for a few, not enough) currently obstructing the Obama agenda from moving forward and destroying this country.

          • Mike Smithy

            I thought all you commie libs were vegetarians.

          • Annette Smith

            the other great white meat!

      • Truthisternal

        Lol!

      • kfilly

        Freeze to death without heat

      • Rick

        Hey, give the guy a break, it must take a lot of hard work and creativity to copy and paste the same comment over and over day after day.

      • jaxon64

        Sounds fun—-
        1. Maybe he’s on meds ( educated guess) and dies or goes manic when he can’t go to the looted pharmacy for them.
        2. Drinks stagnant water and suffers painful GI distress and diarrhea ( 100 years ago, diarrhea was one of the top 5 killers of humans-more than cancer-strange but true.)
        3.Ptomaine poisoning
        4. A rusty nail from picking through a ransacked house or building leads to tetanus.
        okay–that’s 4 quick ones–next?

      • this one guy

        Now that’s entertainment LOL All in fun of coarse

    • Plextt .

      Keep it up! I’m looking forward to the day=)

    • Burt Year 2015

      Have A very merry BURT Christmas this year and A happy mean new year.

    • Burt Year 2015

      God needs to get rid of the Devil Monster.

    • jaxon64

      –Chinese Stock Market collapses almost 10% Monday morning–markets from Hong Kong, Japan and across Europe all are down significantly.
      — 95% of “recovery” is reported to be garnered by the 1% while the other 99% are facing stagnant or dropping wages and increases in costs while earning 0% interest
      Do you consider the misery and millions that are slowly dropping away into poverty not worthy of an alert?—FOOL–not tomorrow, it is happening NOW. You are truly proof of the frog in the boiling pot theory.

  • K

    We may one day look back, and say it started in July. And with paper gold and silver crashing. At the same time real gold and silver are getting hard to find. This indeed could be the start of a major decline. But I still think the real bad news is coming in Sept.

    • Rick

      No doubt about it. If this is as bad as it gets right now, we would all be thrilled. Unfortunately I do believe in Septembers and Octobers as econolopathy months.

      • Ouida Gabriel

        I tried to look ip the definition of econolopathy. Nothing comes up except your comment on this blog. Am I to assume it is apathy about the economy? Appreciate any replies. Thanks.

        • Rick

          OuIda, apologies, this is probably not an official word. I happen to be from the medical profession where we many times call an abnormal function in a system or therapeutic area, a pathology. So here I am just melding economics with medicine. In my eyes our economy is diseased, so hence, it has a pathothology. It’s a Latin / Greek term. Just trying to make a point. Nothing more.

          • Ouida Gabriel

            No worries. I appreciate you explaining it. Your word makes more sense now. Appreciate you taking the time to respond. Thank you for that.

    • loadnup

      In ’08/’09 while the crash did have a trigger I seem to recall months of pain before I finally stormed my then brokers office demanding a check before it was all gone. Back then I actually trusted them. I a m responsible for not being vigilant in monitoring our account but one would think, at least my bride and I did, that if your “portfolio” had lost $250,000+ and continuing to bleed daily that the son of a satanic demon would at least give you a call and ask what we wanted to do with what little remained. I thought I was naive at 18….. Just damn… I think to avoid the kind of “race” ( pun intended) for the exits that we all forsee this collapse will be the opposite in that they will bleed any foolish folks or institutions still drinking the koolaid and just before they perceive the sheeple waking up and storming their broker/banker they will then pull the trigger and wallow for a short time in false security as they are found and hung. That is my take on all this crap pola…

      • K

        Mostly agree. I however do not see, any of them being hung. Also, I do not think they trust themselves in knowing when people are waking up. No, I think there is an actual target date for the crash. Look how all the markets are manipulated, they leave nothing to chance anymore. Congrats, you at least learned from the last crash. I know some, who will be just as surprised this time.

  • CharlesH

    Republicans are right – EVERYTHING is falling apart because Barack Obama is in the White House. That’s my very own independent and absolutely correct opinion poll of 1 – me and that’s who counts the most right now.

    • Burt Year 2015

      Obama has A small head?

      • Lex loathar

        Made out of 100% sh!t.

    • Jack Clancy

      I trust the Republicans less than I do the Democrats. They both seek to enslave us.

      The Republicans control the House of Representatives what have they defunded? They control the money. What have they done? Nothing but continue to fund Democrat big government.

      One beast with two heads. It’s time “We the People” take our country back….by any means necessary.

      • Mike Smithy

        I trust the Democrat’s less. President Zero will have more than doubled the national debt in 8 years. For the sake of comparison, Zero and his Demoncat’s have taken us to the fiscal cliff at 100MPH, while the Republican’s have taken us to the cliff at 50MPH. However, the destination remains the same.

        • Jack Clancy

          Why have the Republicans failed defund any programs?

    • Three percenter

      When will people realize the whole democrat and republican is a farce. They are both the same party at this point, it’s the equivalent of a WWF fake wrestling match. Proof can be seen with who is dumping stock, both parties. They’ve been inside trading for years and now they are helping fuel the collapse.

    • Gay Veteran

      Obama=Bush=Clinton

  • Richard Broberg

    All the Fed has to do is crank the printing up. The only problem is a little thing called marginal utility.

    • Mike Smithy

      Yes, the law of diminishing returns. However, I don’t doubt it when Peter Schiff suggests that QE4 is on the horizon. These psychopathic bankers are capable of anything when their backs are against the wall. When all else fails they will orchestrate a false flag event and label it a black swan.

      • greyprepper

        Excelled analogy!

        • greyprepper

          *excellent.
          Damn you autocorrect…. :(

  • Bill

    Repeat- jade helm is not a drill. Hope “they” are not more ready than “we” are. Let’s hope there are ” friends” on our side.

  • Josiewales

    People’ll be jumpin outta windows for you know it Lidge….

  • Josiewales

    Don’t be a walkin uner tall buildins in NYC it be a raining peoples Lidge…

  • The proof will be in the pudding.So far lots of speculation.Certainly we are on an unsustainable course but the trigger for the conflagration has not happened.

    • Mike Smithy

      That’s what false flags are for and the bankster’s have numerous scenarios to choose from.

      • Rick

        You got that right, and they control,a government here in the USA that is ready and willing to carry them out.

    • Rusty Brown in Canada

      The proof is not “in the pudding”. It’s in the eating.
      “The proof of the pudding is in the eating.”

  • Mike Smithy

    Michael, don’t be too hard on the Obamabots. It’s not that they are ignorant, it’s just that so much they believe to be true simply isn’t.

    • df NJ

      I’m still waiting to get trickled on by Reaganomics but so far it’s only been a number 2.

      • Mike Smithy

        Are you suggesting that Obamanomics-“Trickle Up Poverty” is working?

      • Mike

        You should have tried getting a job back then.

      • barry oldwater

        Free trade my friend, sounds good, but somebody’s high paid job will end up going to the lowest bidder, do I hear a 15 dollar minimum wage calling?

  • Genada

    The only growth we have is tied to debt, no more debt, no more growth. We have reached peak debt.

    A grand reset is on it’s way. The debts must be wiped out as they can not be payed. It’s going to be very painful for many people.

    • JailBanksters

      But not for Bankers the likes of Jamie Dimon and Jon Corzine

    • Lance

      do you really believe a ‘grand reset” is coming.??
      i hope so……but it seems like it already would be here..if it was to happen!.
      stock market crash is hardly a ‘grand reset”
      dow drops by 40%??? yeah so?
      but i do hope u right!

      • metasploiter

        When this crashes it will make the Great Depression look like a recession and the only ones who survive are the clowns that created it, but there is a hope, when they come out with there solution to the problem, screw them, barter everything, there are only as powerful as we allow them to be.

        Silver will be my preferred method of transaction

        • WVBORN56

          Well, we can’t eat silver. I’m thinking the coming crash is the one discussed in Revelation chapter 6. When you factor in this very bad coming economic collapse plus the evacuation via the rapture of millions of washed in the blood believers….things will be very very bad for those left behind. I’m no prophet but the signs of the time surely are indicating we are in the season of the return of Jesus for his bride. Best investment one can make is faith in Christ Jesus the Messiah. Seriously consider John 3:16, Blessings

          • metasploiter

            Agree, were here, 5th seal, the lake of fire, think Iran and a new nuke treaty, think a nuke going off in Israel, I’d call that a Lake of Fire

          • Frijebai

            In that case, beans will be my preferred method of transaction.

          • algol2000

            Haha. Sacks of beans compactly packed with all nutrients needed by man and durable too. You got that right.

          • None

            Man does not live by beans alone.
            After three days, you will know.

      • sistersoldier

        It is happening just a little slower this time because this crash will be unprecedented and when the economy emerges it will be a lean, mean killing machine. Literally.

    • Ranger_Ric

      The only ones it will “reset” for are the banks who owe trillions. Do you think -your- debts will be reset? If you can’t pay your mortgage they will take your house, before, during and after the collapse.

      • Alwaystomorrow

        Amen!

      • sistersoldier

        If the collapse is on the scale that economists and theorists alike are claiming it will be then a house will be of little value anyway. In my opinion a home without access to running water, electricity or heat is something that the bank can gladly have back. It is apparent that survival will depend on mobility — in a house you are a sitting duck. Those who would suppose a gun will protect them and their interests what happens when they start a fire from the outside to smoke you out? Nah they can take the home and the car also, you maybe a moving target but not for long as gas is sure to be scarce since there will be no working pumps. Just my thoughts….

        • harshmellow

          I agree 100%. In a doomsday scenario “Sheltering in place” would be more like “Dying in place”! The question is, where do you go that’s safe?

          • sistersoldier

            I believe that God will provide a place in the wilderness so to speak for those who believe that He is able to keep them in times of troubles. I have seen “shelter in place” quietly emerging on doors in shopping centers and other complexes. This is a disturbing trend to say the least that our world has become so unpredictably chaotic. Personally, I am researching places that are away from a possible strike zone and definitely away from a major fault line. But it will require being sensitive to the voice of God to know when are where to move to a place of safety depending on His will and purpose for each individual. Be safe out there and God bless.

      • Frijebai

        Why do I feel the poor pay their depts and the rich bail out?

    • Beatriz Mc

      No it can’t be wiped out. The market falling doesn’t mean you owe nothing. It means the government will suck the people with the debt first. They want their money and they’ll knock down your door to get it. They will be in a mass scramble to get it back. Perhaps bankruptcy will be the answer for some but not all

  • cds crash

    earl drops to $40 it’lltake s&p with it.triggering a tril plus cds collapse,forcing fed to move with more printing,massive commodity crash,will the street as usual just ignore it,we’ll see

    • Burt Year 2015

      We all better get ready for the stock market crash soon. Because Marc Dinger’s nose is starting to bend down ward. When it bends all the way down it will blow off his face and the stock market has crashed.

  • Burt Year 2015

    Let the buck go and die. Warren Buffett Bill Gates George Soros and David Rockefeller will loose all their money. GOOD!

    • kfilly

      The people behind this collapse won’t lose their money. The names you mentioned are the ones behind this. They are already prepared for this. They will gain power and wealth. That is their ultimate goal.

      • Rick

        That’s right, the smart money has already left the system. The smart money is controlled by the people mentioned above plus a few more. These are the same people who have rigged the precious metal market, these are the same people who are now buying up PMs at rock bottom prices from the average Joe who bought in about 50% higher, and who is now in panic mode. The smart money has either gotten out of paper and electronic debits, or have an exit plan ready to go when the last cronie speaks.

    • Gay Veteran

      and the Koch brothers

  • Stop Republican Obstruction

    This is house of cards will collapse. It is inevitable.

  • Bob332

    With the inmates in the Regime running the show, these inmates will be rioting with the other inmates who VOTED for the Obamanation when the collapse comes.. Get your beer & popcorn and just watch the show!

    • Rick

      The first to be killed in our streets will be the same people who voted for this idiot. They will be dead useful idiots, while he can wear the title of supreme idiot.

  • Midwest Values

    Most people are on vacation and not focusing on anything except travel plans for sending the kids back to school. The shit will really hit the fan week after Labor Day when people start looking at reports. That is usually when I receive bad news from clients.

    • hellonurse

      Yep. Mindless zombies TOO BUSY with their own business (easily distracted). Of COURSE, all they are attracted to are shiny things (iPhones anyone?). Seriously, just put a shiny thing in front of them, so they can say “OOOOO, SHHHIINNYY!” As soon as you take it away from them, BAM!! Their money’s not in the bank anymore! And can’t pay off house, and etc. It’s true though. The mindless zombies are doomed and they only wake up when disaster hits them like bricks on rye!

  • Stop Republican Obstruction

    Even the dishonest CNN is sounding some alarm bells. They had an article about how sick China’s economy is. Sadly the same applies to hundreds of other countries though.

  • autofixer

    BTFD!

  • JAY

    THE KING of this WORLD NARENDRA MODI will save us

    • Rick

      Too funny!

  • record high margin debt, record high short interest, velocity of money below 1930 depression levels, shiller p/e in overvalued territory, dividend yield near all time lows on the s and p, massive rising wedge in the sand p, transports and commodities diverging etc all adding up against any further upside.

  • old fart

    I guess we can call them Obamavills instead of Hoovervills

  • barry oldwater

    Oklahoma unemployment crept up last week slightly due to retail store closures, happening all over also. The energy sector provided a boom to the economy that is going to fizzle out as those energy sector jobs that were created when oil was trading at twice what it is now start to be cut, can’t stay unprofitable for long unless your a democrat constructed handout.

  • Heinrich van Rooi

    China is falling again this morning…Early in July I did say the US markets are weeks if not days from a decline to a crash… I did happen precisely as I said…Take a look my disqus.. also my comments from April. Here in Michael’s newest article he mentioned something about oil companies earnings starting to hurt… Well the next oil crash is on the cards.. don’t be surprise if we see oil prices heading to $35.. not long ahead..

  • Richard Chiu

    The next generation WILL be a lot better off than their parents.

    But most of us won’t survive to be parents of that next generation.

  • El mico

    Does anyone really think it matters who is in the white house.

    The system is so farked up, god himself could be sitting in the Oval Office and he would be blamed for everything.

    That said he kinda is.

    • Rick

      Quote from Kong Solomon. “There is nothing new under the sun.” Read Exodus. Been there, done that!

  • Saeed

    You can laugh all you want to but in the end people like Michael Synder and others who have been warning us for years will be proven right. When this PPT and market levitation jig is up it will be the mother of all bubbles (stocks, bonds and currencies) that will pop. The last thing standing will be debt free area me land, gold, silver, water, renewable energy and heritage seeds. Have you seen how wa boy Chinese stock market has been since May 2015? China is an early indicator because they are the manufacturing hub, and commodities are another indicators, which are tanking right now. My hope is that in the coming crises we will keep our humanity and treat each other kindly, and in the process of suffering humanity will become kinder and gentler, and give up on the arrogance and hubris. Good luck!

  • nevergiveup

    Not looking good in China at the moment. Looks like the market rigging tactics did not work. Lets see how this reverberates in the west. I read somewhere (Hong Kong publication) that China owes US$23 trillion. Does anyone know how true that is? I also read that they were the biggest known holder of US debt.

    • Avner

      China blew lots of bubbles with our dollars. Shrewd really. They have been at economic war with us for a long time. Actually, you’re seeing worldwide economic and trade wars right now.

      Or we can talk about that wackadoo Bruce Jenner. Your call.

      • nevergiveup

        At the mo it would seem like China is losing. Didn’t expect the last comment. Thanks for the chuckle :)

  • G21

    The leftist/liberal/socialist/Marxist/communist Democrat Party has a lot to answer for, and the weak, spineless RINO Republicans, who could have stopped Hussein Obama’s muslim/communist/America-hating agenda also have a lot to answer for.

    Having squandered the wealth of not just individuals, not just a nation, but the world, through forced Keynesian economics, we now are at the very precipice of disaster. As Prime Minister Thatcher once warned, we have indeed “run out of other people’s money.”

    Despite the rotten-at-the-core “economy”, which threatens almost daily to crumble to powder, now the leftists/Marxists are going to seize untold $$$ hundreds of billions $$$ from us under the guise of “global warming”.

    And who knows what wicked ideas are yet lurking in the evil mind of the muslim/Kenyan/socialist America-hater?
    Slavery reparations, which would cost more $$$ hundreds of billions $$$?
    Seizure of all savings, pension plans, IRAs?
    Relocation of tens of millions of muslim “refugees” to America?

    When the inevitable anarchy/rioting/martial law hits, the Democrats and RINOs had better stay away from me, because I won’t be in a very “understanding” mood.

    • Rick

      I’m with ya! I would just add that after the dust settles, every politician that was elected the last 15 years at the Federal level, and who served more than 1 term, should be thrown in jail. For a long long time. Including all living president’s past and present. And for good measure, we may want to throw in a couple of dead ones.

      • Frijebai

        Zombie Nixon.

        • Rick

          No doubt, He’d be one of them!

      • df NJ

        Or hung.

    • Mike Smithy

      Amen. +100.

    • Gay Veteran

      we live in a fascist state (fascism is the merger of state and korporate powers)

    • df NJ

      You have no concept of communism or socialism. Google and watch the video “Wealth Inequality in America” and look at the graph for the dreaded socialism. We are as far as you can get from socialism and still have a government currency having any shred of value.

      Republicans are just as bad as Democrats. Both parties suck. ALL government is a boondoggle for billionaires. Government by the rich, for the rich, screw the worker. MONEY TALKS, everything you post on this blog is BS.

  • Rick

    My view on your last question will strike many as an inappropriate comment. Personally I am not a democrat or a republican, nor am I a member of the muslim political party. And yes, this is exactly what islam is, a political party hiding behind some false claim of religion. It certainly is not religion by the standards we use in America, and it certainly isn’t a “peaceful” group. Instead it’s a radical political movement infatuated with taking over the world, and subduing your freedoms, or if you won’t go along, just killing you is their default. So to answer your question, on this one, I will side with the republican poll results. We can never in America have success and optimism with a POTUS who is a radical Muslim.

  • Thomas D Guastavino

    Democrats are just lying crooks (Barack Obama, Hilliary Clinton), Republicans are just pandering idiots (Donald Trump, the rest of the republicans who think they can get elected by pleasing everybody). Elections are about choosing the lesser of two evils. I will continue to vote for the candidate who will interfere with my life the least.

  • John Byde

    Time for another “129 Reasons Why We are on the Edge of Armmageddon” article, Michael!!

  • DJohn1

    What has to happen is people have to get back to the basics. Do not really see that happening.
    Keynesian economics is a false god put out by lying thieves and is accepted by economics professors throughout the entire world.
    The truth is the books do not balance.
    As long as the government can print money to make up the difference no one has been the wiser.
    So we all pay with money with no commodities to back it up.
    Gold used to be the commodity of choice to do so.
    Land used to be the commodity of choice for the working people.
    All of this has changed.
    Changing either media of exchange becomes worthless in a down market. In order to have a market place you have to have people with money to spend. The cash clients for land are becoming rarer and the price of property goes down when the market isn’t there to sell the property for what it is really worth.
    Same goes for gold.
    Normally property increases by 4.5% per year. This number is not happening in the current marketplace. Property is down well over 10 and sometimes 20 percentage points right now.
    Banks are based on mortgage revenue. That revenue hasn’t been the same for a good number of years now. So the banks are going under. Only the Fed printing money has kept them afloat.
    All of this is based on the false premise that wages will go up.
    That too has not happened since the mid 90s. So the very foundation of our currency is at fault as well.
    That means the common person out there has less to spend than they have ever had before. We are at levels more common in the mid 30s than what we have now. The money has been inflating, but the wages haven’t.
    I can trace that right back to its origins in the 80s. Because when Reagan went against the air controllers that was the beginning of the end right there.
    Since then more and more people are forced to take jobs without negotiation of wages. That forces a lowering of the common person’s ability to make a decent living.
    Industry has pounced on this opportunity as well. They have exported the jobs overseas.
    All of this combined is causing the current depression to occur and there is virtually nothing that the people on top have done about it.
    So now 50 years later, the people at the top realise they have made a mistake? That we are faced with an economic disaster. That the people on the top, like rats, are leaving the sinking ship?
    Donald Trump appears to be an idiot in the way he keeps spouting off about this or that. But there is a lot of truth in those spoutings.
    I suspect he may be our next President.
    But he is walking into the biggest depression this country has ever seen. I hope he has a way of bringing it around so that everyone has a means of making a living.
    Do not have a lot of faith in that happening.
    What I do see is millions of people caught in the trap of not being able to make ends meet. Whether it is seniors on pensions or kids without jobs, it is all coming to a head soon.

    • Brad Zimmerman

      I agree with most everything you said. However, you’re way off on real estate prices. For whatever reason they’re way up.

      • DJohn1

        I can only base my numbers on local conditions. Over 7 years taxes have gone way down. The property I bought in 2007 has went from 140,000 down to 110,000 in value in a plat of homes where values are fairly easy to calculate due to many of the same model home being available.
        This model is named a Classic and it is a 3 bedroom ranch with 2 bathrooms and a breakfast room and formal dining room plus a family room. There are approximately 500 of this model in the immediate plat of homes,
        My point being it is easy to to forecast value based on numbers of similar homes that have sold within the last year.
        The tax people here are evaluating the homes above market value. I have challenged the successfully on this before.

  • Richard O. Mann

    There are none so blind as those who refuse to see.

    • hellonurse

      Willful ignorance, you say? It IS true, sad but true!

  • Avner

    I just want to say that we have a huge opportunity here. If you have fiat in your wallet, you can use it to get supplies on the temporary bounce in it’s perceived value. It’s almost like getting it for nothing. Think about it.

    • sistersoldier

      That is because soon a box of raisins will be more valuable. A depression within a depression, bury your gold it will be better kept that way.

  • sistersoldier

    Does anyone remember the “debt ceiling crisis” threats of government shutdown, the debt clock all of that seems to have disappeared. Now all I seem to hear is “commodities” are in trouble and the “derivatives” are in trouble. The sky is falling momentum seems to be shifting in a new direction unfortunately this time the cry is real. The numbers that come out of wall street and the business sector are all over the place I don’t know how any wise investor would even consider putting their money into the greatest ponzi scheme on earth. Existing housing sales are up, then down, New home sale are up one week then missed the mark the next week in the same reporting month {{up, down, up, down, up again down again no wait their flat}} Sorry wolves of wall street the gravy train has left the station.

    • df NJ

      The government is meaningless. The Federal Reserve controls the economy.

  • BRELG

    Michael, thanks for pointing out and explaining bond liquidity as a determining factor.

    Fundamentally underlying all bond liquidity is essential capital formation, and I stress “essential” because we have completely forgotten as a nation what capital even IS. Most of the capital formed in the last 20 years would be considered by economists, who consider wealth-building as the foundation of national growth, as useless misallocation caused by cheap money. A nation grows in wealth and is able to consume long-term when it uses proper capital to create things others need to sustain life. This is what we did pretty much, prior to the 1960s, and the U.S. grew in relative wealth. Since that time, we have mostly lost sight of what true productive capital is, and even most of the productive capital is misused, and frittered away. Two good examples would be the whole “connectedness” system, and our transportation system. Most of the true wealth-building value of these is swamped by the non-productive use of them, and yet the wasted portion is what drives their phenomenal growth !

    Say’s Law, which is essentially that a nation has to produce exactly as much as it consumes long-term, even with trade, is one of those Iron Laws of Economics that is never repealed. We are seeing the denouement of extensively violating that now in the U.S. and European bond markets. It can be hidden for a time with credit emission, but that only serves to make it roar back later. The stock markets are about speculation, and can be pumped full of created money, but the bond markets are much more about investment.

  • mike day

    To who this may concern The DECLARATION OF INDEPENDENCE READ IT ,THEN REREAD IT .All of the events, all of bull %$^& ,ALL OF THE DANGER , IS THERE ! OUR SOLUTION TO THE POOLITICAL BANDS IS IN OUR BILL OF RIGHTS THEY ARE NATURAL RIGHTS GOD GIVE US THIS RIGHT TO GO OFFENCE AGAINST TYRANTS . To all AMERICANS ,to all men and women who believe in WE THE PEOPLE , SOON VERY SOON THE TYRANTS WILL THINK THEY ARE UNLEASHING HELL ON EARTH ON WE THE SHEEPLE . I SAY LET US RAIN INDEPENDENCE ON THESE FOOLS BECAUSE WE CAN . The Tree of LIBERTY NEEDS TO BE WATER THIS TIME LET US WATER THESE GRAND TREE WITH THE BLOOD OF ENEMIES OF OUR REPUBLIC NO QUARTER GIVING FOR THEY WILL GRANT US NONE .

    • df NJ

      Many people think the way you think. But be smart not reckless.

      • mike day

        dfNJ The many people you refer to are Americans . Be smart is why I write the above , Praying to GOD that the so called powers that be may pull back . Common sense tells me this is their time .What I have writen is not reckless for soon very soon our enemies will unleash their war beyond words on us better to say out loud the cost for us and them !

  • greyprepper

    Umm, yeah. We are awake. Run to the MSM sites and scream at them for a bit. You’re kinda preaching to the choir here.

  • JW Mack

    I recommend food storage and ammo storage. Get after it people!

  • grumpyhillbilly

    The two parties are just good cop – bad cop. Their role is to pacify the masses into thinking we have a chance. Sometimes I think the stock market has always been a scam where we serfs pay our master. It will take so long to fix things, especially people. Quite frankly I’m not so sure nature isn’t getting ready to hit the Earth’s reset button. Anyway we are soon entering survival times.

  • FreedomFighter2015

    Latest news. Chinese stock market crashed 8%. Here it comes folks, it had just started.

  • muldoon55 .

    everyone on these sites loves to describe the water we’re drowning in but never offer the solution,unless running through the back woods from foreign UN troops bullets is some how the only answer.
    This collapse will happen, not because of the ineptitude of our elected officials, but because it is orchestrated by God almighty who has from long ago ordained the time limits of human rulership. And guess what boys and girls? Time’s up and God is going to take this earth back and install His son Jesus on the throne of His kingdom.
    It’s time to decide where your allegience lies. Mans’ rule or Gods’.

    • df NJ

      It is the height of human hubris and possible man’s greatest possible sin to pretend to speak for God.

      • muldoon 55

        then all of Gods’ prophets who spoke of His judgements are imbeciles according to you.

      • muldoon 55

        read your bible you uneducated idiot

  • df NJ

    Raise worker’s wages. All problems solved.

    • If only it were that simple. If printing moar and moar money were a solution, the Weimer Republic, Zimbawbwe, and dozens of others would never have experienced hyperinflation.

      • df NJ

        I did not say print more money. As money is concentrated in fewer and fewer hands we have depression. You need money in people’s hands to have commerce.

  • Arizona

    THE LORD doesn’t warn governments VERY offen,BUT July 25,2015,he sent a warning to ALL governments world wide,and the people who run them,NOT that they care,but he let them know,IF they keep doing the things their doing, WORLD WIDE WAR will happen,the american people are so dumbed down,they’ll never see it coming……Godshealer7,(youtube),barbara recieved this message,you might want to hear it…THE PROPHETS of GOD are warning,are YOU LISTENING???

  • FreedomFighter2015

    Even on economic official American websites (CNBC, Bloomberg) I read a best rated comment:
    “Chinese thinks that they stocks are highly overvalued and overpriced. Well, Wall Street is not a big difference”.

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