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What In The World Is Happening To The Nasdaq?

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NASDAQ MarketSite TV studio - Photo by Luis Villa del CampoAll of a sudden, the Nasdaq is absolutely tanking.  On Monday, it fell more than 1 percent after dropping 3.6 percent on Thursday and Friday combined.  At this point, the Nasdaq is off to the worst start to a year that we have seen since 2008, and we all remember what happened back then.  So why is this happening?  In recent years, the Nasdaq has been ground zero for “dotcom bubble 2.0″.  The hottest stocks in the entire world are on the Nasdaq – we are talking about stocks like Yahoo, Netflix, Apple, Tesla, Google and Facebook.  Those stocks have gone to absolutely incredible heights, but now they are starting to fall.  Some are blaming insider selling, and without a doubt the “smart money” is starting to flee the stock market.  Just check out this chart.  Others are blaming low expectations for first-quarter earnings or the tapering of quantitative easing by the Federal Reserve.  But whatever is causing this decline, it is starting to get alarming.  The Nasdaq just experienced its largest three day fall since November 2011.

No stock can resist gravity forever.  What goes up must eventually come down.  This is especially true for stock prices that become grotesquely distorted.

On Wall Street, a price to earnings ratio of 20 to 25 is usually considered fairly normal.  In recent years, the price to earnings ratios for many of these “hot tech stocks” have gone way, way beyond that.  For example, posted below is a screen capture from Bloomberg TV that was featured in a recent Zero Hedge article

Zero Hedge

There is no way in the world that such valuations are justified.

We have been living in another dotcom bubble, and it was inevitable that it was going to burst at some point.

The following is how one financial industry insider described the carnage that we have seen on the Nasdaq over the past few days…

Gary Kaltbaum, president of money-management firm Kaltbaum Capital Management, describes the carnage of once high-flying “growth” names in the Nasdaq composite, that have come crashing down to earth: “The best we can describe what we have been recently seeing in ‘growth-land’ is a 50-car pileup,” Kaltbaum told clients in a morning research note. “Call them what you want … risk areas, growth stocks, froth areas … they are melting away.

And of course it isn’t just the Nasdaq that has been seeing declines over the past few days.  On Monday, some of the biggest names on the Dow also fell precipitiously

Visa, Goldman Sachs and Boeing are among the biggest drags on the Dow Monday, falling 2.1%, 2.9% and 1.4% respectively. Weakness in these stocks is especially problematic since the Dow gives greatest weight to the stocks with the highest per-share prices. And at $203.41, $158.56 and $125.59 respectively, Visa, Goldman and Boeing are the stocks that really matter to the measure.

And the trouble in these stocks isn’t just today. So far this year, Visa is down 8.7%, Goldman is off 10.5% and Boeing is down 8.0%.

This recent decline has many analysts groping for answers.

Some believe that it is simply a “rotation” as investors leave growth stocks that have become overvalued and move into safer, more traditional stocks.

Others are pointing their fingers at the Federal Reserve

Peter Boockvar, chief market strategist at Lindsey Group, believes it’s all about the Fed. “I’m still amazed at the complacency with the Fed taper, and a lot of people still don’t think it’s a big deal,” he said. “I just don’t think it’s a coincidence that the high-fliers are getting popped when the Fed is half way done with QE. We’ve got tightening smack in front of your face with the taper.”

In fact, some believe that the really big stock market decline will happen later this year when the Fed starts to wrap up quantitative easing completely

Once the Fed begins to truly reduce its massive bond buying program later this year, markets could see a quarter of their value wiped off the books, a private equity pro told CNBC on Friday.

Jay Jordan, founder of the Jordan Company, issued the dire warning during an interview on CNBC’s “Squawk Box,” saying a 25 percent drop could extend to all asset classes. He blames the monetary policies of former Fed chair Ben Bernanke for artificially inflating asset prices through super-low interest rates.

Yet others point to the fact that we are now moving into earnings season, and it is being projected that corporate earnings will come in at very poor levels.  In fact, it is being estimated that overall earnings for companies in the S&P 500 for the first quarter will be down 1.2 percent.

So what should we expect to see next?

Whether it happens this month or not, at some point a massive stock market correction is coming.  In recent years, the financial markets have become completely and totally divorced from economic reality, and that is a state of affairs that cannot last indefinitely.

Many have compared the current state of affairs to 2008, but to me what is happening right now is eerily reminiscent of 2007.  The Dow soared to record heights quite a few times that year, but there were constant rumblings of economic trouble in the background.  Stocks began to drop steadily late in the year, and 2008 ultimately turned out to be an utter bloodbath.

I believe that what is happening right now is setting the stage for another financial bloodbath.  I truly believe that we will look back on this two year time period and regard it as a major “turning point” for America.

And as I have written about previously, we are in far worse shape as a nation than we were back in 2008.  We have far more debt, the “too big to fail banks” have a much larger share of the banking industry, the derivatives bubble has gotten completely and totally out of control, and our overall economy is far weaker than it was back then.

In other words, we are now even more vulnerable.  When the next great financial crisis strikes us, it is going to be absolutely crippling.

Now is not the time to get complacent.

Now is the time to get prepared, because time is running out.

  • K

    Netflix, Apple, Tesla, what do they have in common? They are not necessities. As wages continue to drop, more and more are cutting back to necessities. Do you think the rich do not know what is coming? Soon over 50% of the population will be down to necessities only. 25% of the population already can not even cover their necessities. If you are a company, that caters to the rich, you may be fine. If you are a company that turns out necessities you will be fine. Every other company in between, becomes an open question.

    • Richard

      I will tell you what is going on. People are starting to realize that these companies are not worth the paper there printed on, just like our money. Most of these companies are losing money. Hold on the dive is coming soon.

      • Bruce Wayne

        Obamacare is going to break the bank…………simple economics as money that would go into goods and services of choice will now go into a maandated system which will have no incentive for improvements…….it’s called communism and it does not work

    • piccadillybabe

      I consider Netflix a necessity.

      • Charlotte

        I’d literally cut back on food before I gave up Netflix.

        • Jus’Say’n

          Women!
          Says it all. The kids can starve – as long as I have my Netflix and National Enquiror (Cause [Simple] Enquiring Minds just need to know).
          The coming catastrophic crash of America will be a sign to the generations of men that follow!!! Never let a female drive your car. Homo’s, Femtards and Pansy’s are KILLING this county!!!
          Gosh daamn, women r STUPID creatures!!!

          • Susan

            believe it or not, as a woman, I agree with you lolz feminazi’s are helping to bring this nation down

          • Charlotte

            Wouldn’t the fact that I read this blog show you I’m aware and prepared for what’s coming down the line? Can anyone here seriously not take a bit of a joke?

          • Jus’Say’n

            Charlotte,
            I am sorry – to you!!! Wasn’t personal!!!
            This country is going to hell in a hand-basket, fast!!! That’s all!!!

          • Susan

            sorry, was in a serious thinking mode yesterday so took it as serious lolz, have to laugh here and there to help the stress that is going around and is only gonna get worse!!

          • nekksys

            I can… :)

          • Jus’Say’n

            Amen Susan! And THANK YOU!!!

            How BEAUTIFUL a real woman can be!!!

            G-d said, “How Beautiful?!”

            The women I/we speak of are the “Cows of Bashan”, the PC Jezebels!!! They have torn this country to shreds!!!

            Isaiah 3:16-4:1

            Amos 4:1

            But not just them — they’re just being led/used by the “Big Apple” — you can do what He can do. You can be as G-d!!! Now, where have we heard that before?! Hmmmm?!

            P.S. — and don’t think I don’t know where the other half of the problem lies — with the Ahab’s!!! Worthless/Sackless Men!!!

            Country’s covered with them to!!!

          • Susan

            the thing is, why are the men letting those Jezebels take control, where are their cajones????? I agree satan has them (feminazi’s) by the hair!!

          • Charlotte

            Can’t recognize hyperbole when you see it, can you? Yeah, I’d give up a meal at a restaurant once a month before I’d give up Netflix. It’s trading one luxury for another, nothing more. In a time of crisis when all luxuries have to go I’d have no problem giving up both. How you spun that into a tale of women letting kids starve and being dangerous behind the wheel is anyone’s guess.

          • piccadillybabe

            My sentiments entirely.
            No mistaking, there is a war on women. Funny how liking Netflix in the face of adversity brings em out all armed to the teeth.

          • Jus”Say’n

            War on Women??!!!!
            Blah, Blah, Blah!!!!
            Goebbels/Jezebels BIG LIE!!!
            THE WAR has been on MEN and G-d!!! The man that refuses to pay Child Support – even to the prostitute that takes his house and kids (by corrupt G-dless coursts) is a dead-beat! But the prostitute that don’t want the child can have it Slaughtered and she’s a Hero of Jezebels Rights???!!!
            Who’s the War On?!
            Of course the “G-dless Females” I’m aiming at in my first comment are the Feminazi’s who now control America and are being used again – by the devil – to manipulate and subvert the Ahab’s (Pansy’s) of the World for absolute control and domination. If “Feminazi” does not apply to you – then don’t take it personally. But – then again – if you’re an American Female and have not stood up to the G-dless Feminazi’s — then you’re probably guilty by association/complicit?!!!!
            For those with eye’s – the Devil used Eve’s (1st Feminazi) own naivety/gullibility along with Adam’s “Sacklessness” to subvert/beguile/manipulate him into the FALL. Then there was Jezebel and Sackless Ahab. It’s happening again – Political Correctness, Homo’s (Boy’s raised by mommies + PC BS) and taking guns etc — all that is JEZEBEL’s doing. The Devil is using your STUPIDITY AGAIN to subdue the World. And the Ahab’s (The Sackless Homo’s etc running the courts, the country) are letting it happen — helping it happen.
            There are Demon’s, there are Jezebels and Ahab’s. Then there are guys like me that would send them all to Tehran!!! Where Allah could deal with them!!!
            Misogynist?! NO! Women are Beautiful and Special when they accept and recognize their limits, role and place.
            But they are STUPID — when they do not. When Jezebel has accomplished destroying what is left of the MEN (Soldiers/Patriots) in this country — won’t be nothing left but the Coming Russians, Sexually Starved Chinese and Muslims’…..
            Then – in a Burqa – you Spoiled Self-Righteous American Women will wish you’de have Kept Your Roll’s, Supported and Uplifted your Husbands and raised your Children and not your Careers!!!
            What am I saying?!
            Learn Russian, Chinese and Arabic now!!! There is NOTHING SPECIAL about you AMERICAN FEMALES and they are going to show you!!! You will SHUT YOUR MOUTHS then!!!
            Unfortunately – most American Men – even the Good, Honest, Hard Working Decent Ones — will die in the process oft he Judgment that is coming to this country!!!
            And that’s why I called you STUPID! Your sons are in Jail. Your Husbands torn and tattered by the relentless Feminist Agenda.The RUSSIAN’s, Chinese and Arab’s are coming to make Wives of you —- and your worried about your Netflix.
            P.S. – ya’lls Feminist BS nearly Killed MY SON!!! I hope the Russians do come for ya!!!
            Stupid! Stupid! Stupid!!! I said!!!

          • Gay Veteran

            man, someone has some anger issues

          • Mark Belk

            The bible also says that in the latter days 7 women will chase 1 man. I believe that is because it will get so bad that the easy times will be long gone and women will have to once again look to real men for protection. The reason for the 7 to 1 ratio is because that is the ratio of real men to wimps and sodomites.

          • duu daa

            More people on Minimum wage will fix that. /sac

          • CharlesH

            HaHaHa…war on women? In your mind only sweet pea.

        • Jus’Say’n

          P.S.
          Apple, anybody?!!!

        • nekksys

          If by “cut back on food” you mean “dining out,” then I, too, would do so if I had a Netflix subscription these days… But, alas, I don’t because I have so much other stuff I’m doing that I have precious little time to view good movies (or even bad television…)

          • Charlotte

            Dining out is what I meant. I have no car payment, no credit card debt, no cable bill, and I don’t waste money on unnecessary luxuries. Netflix is one of my few indulgences. There was a whole conversation about that here a few days ago, but I guess the person I replied to about it deleted their original comment. I can’t see it, at least.

        • CharlesH

          Yep, you’ll be one of the first ones to go by the wayside when SHTF. Enjoy your Netflix while you can.

  • Josh

    Michael,
    I’m new to this site but agree with you wholeheartedly. Read many of your articles on zero hedge. I think the fed will keep this going until 2015 though so it will be prior to the 2014 elections. A stock market crash is upon us within a year though. it is so obvious that we are a nation in decline I fear especially for the young generation.

  • markthetruth

    Neflix yes, but Apple makes devices you need in today’s world and you have to give all coo dos to Elon Musk a Visionary and Determined Individual who created the only private Space Ship to go to space and now brings supplies to the space station and will not stop until people can drive cars on free electric.
    Sorry but the world is changing and you have to change with it.

    the end…

    • matt

      How much for a Tesla? $70K, a free electric windmill $20K? A $3K used gas car does not look so bad.

      • markthetruth

        your so backward thinking remember when a LCD TV was $5000 now they are $1000 . Same with anything new.

        A 3K Car must look bad or needs work. Used cars with high miles can cost more in repairs then it’s worth.

        You remind me of the typical ” would of, should of, why didn’t i ” person.

        the end…

        • Dan1959

          When the collapse happens, how easy will it be to keep a Tesla running? Part of the collapse will be rolling black outs. Maybe even extended total blackouts.

  • Harbinger of Ch@os

    A new dark ages will descend upon the Western hemisphere. Shsrpen your blades and prepare your arrows.

    • Mike Smithy

      I never bring a knife or bows & arrows to a gun fight.

      • Susan

        still may need those once they try to confiscate the ones they “know” you have

  • Frank Bell

    I’m pretty sure it is just a healthy correction.

    The FED will take over after awhile, and the Millionaires will get even richer.

    Business as usual.

    • Dan1959

      Yes, 17 trillion in debt that is climbing exponentially now. Russia, China, India and a host of other countries are trying to ditch the reserve petrodollar. Probably a correction. Hey,……….anyone know how much gold is at Fort Knox?

  • G Man

    Michael what insight do you have in regard to the coming four blood moons that will fall on Jewish Holidays starting apriln15. I am reading some very interesting things. Just wondered if you have anything to share.

    • Guest

      Michael wrote an article about this. Google “The Blood Red Moons Of 2014 And 2015: An Omen Of War For Israel?” and the link to his article will come up.

      Also, there’s a new book by Pastor Mark Biltz entitled “Blood Moons: Decoding the Imminent Heavenly Signs.” I recently read it, and I enjoyed it.

      • Twidiot1

        “The End Times” are always just around the corner. The true sign that the apocalypse is upon us will be when there are no books for sale by any whack job, scamming mega church leaders or televangelist con men.

        • Gay Veteran

          ROFLOL, good one

  • Selaretus

    As bloggers on Zero Hedge have noted, we have no markets or economy, only manipulations and interventions to disuade a stream of seemingly never ending near collapses. Swindles, disinformation, misinformation, murky statictics, and outright lies have all been employed in an attempt to cover up this giant clusterf***. Small wonder. Most Americans would rather hear comforting lies as opposed to uncomforatble truth.

    • Killer Virus

      I love Zero Hedge, when I want real economic news that’s where I go. Plus they throw some good humor into the gloom.

      • David Hammond

        Yes, Zerohedge is awesome. Do you have any other sites that you recommend?

        • Killer Virus

          I like Trends in the News and the Trends Journal with Gerald Celente. Other than those two, I just shuffle through most mainstream sites trying to sift out the BS and formulate an opinion.

        • Drud

          DollarCollapse is a good place to see a lot of different articles from a lot of different places. They post a lot of ZH, but also Automatic Earth, Burning Platform, a lot of Michael’s articles, Daily Bell, etc. Also, I make a point of checking Club Orlov once a week. He usually posts on Tuesdays.

      • K2

        Sometimes yes but not always. They too sometimes manipulate readers with thier own spin on things.

      • K2

        For example, they made it sound like russia is invading the entire ukraine tomorrow, when in reality it dint even do that.

  • 2Gary2

    I always laugh when they claim Ryan is an “intellectual leader”….

    He’s about as intellectual as that old “Teddy Ruxpin” doll I bought my son 20 years ago..

    Like Teddy? Paul Ryan has a pre-recorded cassette player of GOP talking points in his back …

    And only “Mouths” the pre-recorded words told to him by his party..

    • Syrin

      You’re only a fan of guys who have to hide their grades and read from teleprompters. We get it. You like people who think the solution to debt is to spend more we get. You like guys who legalized slavery through Executive Order 13603. We get it. As dumb as you may think Ryan is, he’s exponentially smarter than your boi the American Fuhrer. But this has all the classic points of a GARY post. Condescending, rude, factually vacuous, contributes nothing to the thread, etc. In other words, typical liberal disinformation trash. Everyone can see through you. You’ve become a caricature of yourself. When people say something stupid, they smack their forehead and say, “I just pulled a GARY”. At least you got that going for you. That and your Teddy Ruxpin doll.

      • Killer Virus

        I can see 2gay2 furiously copy and pasting his favorite quotes from Politicususa with sweaty hands, a crumpled up restraining order from his ex-wife on the left and a half empty bottle of Haldol on the right. Wishing he had never creeped her FB page and seen her with a guy bearing a gun and a Reagan T-shirt.

      • 2Gary2

        OK Hoss

      • Dan1959

        Like Professor Griff of Public Enemy said, “The Republicans and Democrats are two wings of the same bird”. Neither one of them have your back. The dems used to act like they were for the working man. You never here any of THAT rhetoric anymore. The elites no longer need the middle class, so it is being discarded.

    • rat28

      Paul Ryan is biggest dumbass..Cutting the budget deficit by increasing military spending.. WTF he think he is..Obama the great??

      • Adrian

        It just goes to show you the right-wing lie: when they say they want smaller government, they mean they want the section of government that provides social services to be smaller (e..g. so small they can drown it in a bathtub). As to the coercive apparatus…well, they want much more of that! More military, guns, spy and surveillance technology, fewer civil liberties…the whole shebang.

        • Moondogger

          Nice Guy Foxe mask! All we need to do is see your avitar to know what you’re all about. Stop wasting our time, lame Jesuit!

          • Adrian

            It’s so tiresome running across morons like you who can’t ever, EVER contribute to an argument, but instead resort to personal insults against someone whom they don’t even know. The entire purpose of these boards is to contribute to the discussion at hand, not whine about someone’s avatar. If you don’t like it, get over it.

          • Adrian

            By the way, it was Guy Fawkes, not “Foxe”.

          • Gay Veteran

            LOL

        • Rodster

          It goes to show you that both parties are two sides of the same coin.

          • Adrian

            Obviously so. Both are bought and owned by the rich elites. Just look at Obama’s record.

          • Rodster

            Ditto !

            That’s why Gary2 still doesn’t get that he’s being played by good cop vs bad cop. Both parties are 99% the same.

          • Dan1959

            Read my Professor Griff ref above.

        • Mal Reynolds

          Sorry it is not the right wing … you are talking about you are discussing The Stupid Party@ … The Party of RINOs. The Red team and the Blue team have the same owners … the 2 parties exist only to give the illusion of choice. It is similar to the harlem Globetrotters vs the Washington Generals.

          • Adrian

            True enough about the lack of difference between the parties, however it is the right wing whose goal it is to destroy government funding for social programs. At least the Democrats make some effort at preserving this.

          • Rodster

            At the rate the US is headed to oblivion, there won’t be any social programs once the USD collapses. It won’t matter which party funds what. The international nations are quickly pulling the plug on the Dollar and in due coarse it will be removed from world reserve currency.

      • Twidiot1

        And even worse, Ryan wants to legalize criminal invaders too. Yes, that’s just what America needs when there aren’t even enough jobs for law-abiding CITIZENS.

    • Twidiot1

      Paul Ryan has bowed before his establishment masters, just like Marco Rubio before him, and gone full retard over amnesty for illegals. F*** Paul Ryan!

    • Hammerstrike

      At least Ryan can use a calculator.

  • Gene Baugh BBA

    Most likely the correction from January is not over. Expect a lower low for the Nasdaq and for the Dow to return to January lows.

  • rat28

    Don’t worry.. correction will be over soon.. Everything is TBTF, please BTFD!!

    • Mike Smithy

      Absolutely. My advice to the sheeple is to get cash advances on your credit cards and buy MOAR STAWKS. BTFATH.

      • Twidiot1

        Now that the housing bubble has been re-inflated, I am going to do a 150% cash-out refinance and buy lots of TWTR!

  • Kim

    Speaking of ZH, buy the effing dip? Not this time.

  • whatever

    Netflix is a good company, but my God how can it be valued like that? Its not like its the only game in town. Im sure it has plenty of competitors nipping at its heels too. Looks like it could become the next Blockbuster…

    • Coffeedrinker

      Back when Blockbuster was still viable and had a store in every shopping center I recognized that they would fail because of poor customer service. At that time, I took a brief look at Netflix and noticed they had the same problem.

      Blockbuster tried to partner with Safeway to put their boxes in Safeway stores and (surprise!) Starbucks also partnered with Safeway to have Starbucks coffee vending inside of Safeway stores–“Birds of a feather flock together.”

      Now the kicker: Safeway’s customer service is terrible.

      Conclusion. Safeway has been closing stores, Starbucks is now resorting to wine and beer sales in their coffee stores to slow down their decline–Blockbuster is dead.

      This is like the story of Noah and the ark. Safeway, Starbucks, and Blockbuster (the flock of a feather) are all on land living as if their world will have no end. The financial flood arrives and wipes them out. The believing customers (of today) walking with the Holy Spirit recognize the Sodoms and Gomorrahs of our time and board the ark in time to be saved.

    • piccadillybabe

      Netflix has far surpassed any dream Blockbuster ever had. It’s the the real ACA for the people! They have the best business model on the planet.

  • Adrian

    I admit that I secretly hope the stock market will just totally collapse and all those rich jerks will lose their millions.

    • Moondogger

      Typical Jesuitical sophistry.

      • Adrian

        Thanks for the pointless post. It’d be more amazing if you’d actually said something relevant to the discussion and topic at hand. Instead you’re post was like a mental fart.

    • Scared Economist

      It’s obvious you know nothing about the Stock Market and those “rich jerks” and how it operates.
      If the Stock Market collapses the “rich jerks” are hedged, shorted, and protected by deriviatives so they will make gobs of money. It will be mom and pop with a 401K or pension account that will lose and suffer.
      The collapse of the housing bubble and Stock Market in 2008 created more billionaires than have been created by this latest stock run-up.

      • Gary Ark

        Not this time – their buddies in the government will not be able to bail them out this time. Printing even more money will trigger massive inflation which will wipe out most of their wealth and savings of “regular” folks. Not bailing them out will leave them with little. Either way, in the next stock market collapse. “rich jerks” will lose a lot of money. Second bailout will not be politically popular either after the first one failed.

        • 02144pomroy

          I know what you are saying but since when has something being “politically unpopular” stopped them? They shoved obozocare down our throats. They will always take care of their own.

          • Gary Ark

            This is a good point. However, at the time of its passing, obamacare was popular, because nobody had an idea what is actually was. People are easily fooled – now they are beginning to realize that this is the biggest rip off of american customers by “health” Insurance companies. They also lie – obamacare does not provide actual medical services. None, Zero. It provides “medical INSURANCE coverage”. So, it guarantees we all pay to insurance companies, but there is no guarantees we will actually get service. As for the bailout – fool me once, etc…

          • Adrian

            That’s right, and it was written by and for the insurance companies, with the state to coerce those to buy a private product. Fascism, anyone?

        • Susan

          Stock market collapse will be nothing compared to what’s going to happen once everyone no longer buys oil in Petrodollars and from what I hear and read, that is Iran/Russia/China’s goal.

          • Dan1959

            Get ready for 9 dollar a gallon gas….ah, smells like recovery to me!

          • Susan

            no kidding, think thats around what Europe is paying for half gallons isn’t it??

      • Adrian

        I know enough to know that when it collapsed last time the rich took a big hit, and when it collapsed in 1929 millionaires became paupers overnight. I also know enough to know that while the rich came out on top from this last crash, they only did so because of government bailouts and policies. Where do you think they’d have been had they not owned our government and been able to transfer $ 12 trillion from the treasury to shore up their failed firms?

        • Dan1959

          2008 was not a collapse, it was an adjustment.

          • Adrian

            You could say the same about the 1929 crash. 2008 would have been a near collapse had the big crooked banks been allowed to fall like dominoes. Capitalism as it is practiced here is a system dependent on massive government involvement in many ways, and probably always has been.

          • Dan1959

            The banks part I will agree with you on! Too bad more bankers aren’t jumping out of windows, are we up to like 20 or so now?

    • Twidiot1

      Be careful about wishing for a collapse. You might actually get it and as Scared Economist points out, it won’t work out quite the way you had hoped.

      • Adrian

        What difference will my hopes make?

        • Twidiot1

          None at all. Have a nice day.

          • Adrian

            Your screen name is so aptly named.

    • Drud

      There are many hopes and fears that arise in times like these, often they even get intertwined. Sure, I would like to live the life my parents have–continual economic growth in relative peace and prosperity, now comfortably enjoying retirement–but, knowing what I know about the state of the world, I realize that this is an impossibility. The world twenty years from now will be radically different, unrecognizable. What exactly it will look like and how exactly we will arrive there are total unknowns–the possibilities are infinite, and therefore there is room for any and all predictions to be wrong. So, yes, sometimes I hope for a quick, tearing-off-the-band-aid style collapse. One though (twisted hope?) I have had revolves around the premise of The Stand, where a genetically engineered Super-Flu kills over 99% of the world’s population over a period of a couple of weeks. It is a horrific premise, written by a horror writer (it is also probably one of my favorite novels ever written), but in some ways it would be a merciful way out of the predicament we are in. Sure, billions die, but many deaths are sure to happen regardless of which SHTF scenario plays out, and easing out in a fever-induced delirium would (most likely and I hope to never have to fin out) than starving to death or dying from radiation poisoning. And when the two weeks are over, the handful (relatively) of survivors have a world with abundant resources and have nearly perfect freedom–this last is one of the most grimly appealing consequences of the scenario: a virus is completely fair, it invades bodies without passion or prejudice, regardless of wealth or social standing. I think the worse thing that can happen from the coming collapse is that the existing power structure not only stays in power, but its power grows, and we all lose more liberty. I have rambled, I realize, but that is the point of this post anyway, strange thoughts occur during strange times.

      • El Pollo de Oro

        Blake Sawyer, the prepper/expatriation consultant who publishes EscapetheUSA dot com, is one of those people who is even more pessimistic than I am. He predicts death on a massive scale in the BRA.

        “You can hunker down if you want, and there will be a few people who will survive. But I believe that 95% of the people in the United States who are alive today that stay here will be dead in the next five to 15 years. I absolutely am convinced of this. The globalists have said it.”—Blake Sawyer

        Sawyer helps Americans relocate to other countries (those that can afford it).

        • Drud

          Yeah, I’ve seen one or two of his videos. Personally, I don’t see this type of death rate as likely, unless there is a nuclear war, meteorite impact, super-volcano eruption, etc. As great as The Stand is, the idea of a 99%+ fatal virus is a virtual impossibility. Ultimately, I guess, it is all in play. Virtually every scenario envisioned by every armchair prognosticator is possible and it is possible that they can all be wrong, at least in the details. The future is always a mystery, but one can see trends, one can take a critical look at history and see that something very bad is on the horizon.

          • El Pollo de Oro

            Although I enjoy hearing Sawyer being interviewed on Coast to Coast AM or Alex Jones’ show, I always keep in mind that he has an agenda: he makes money helping Americans leave. And 95% death is extreme. Plus, Sawyer won’t say which South American country he recommends moving to (since he wants to sell people that info).

          • Susan

            Well if you were a fan of this year’s superbowl, it told you along with many commercials that the time is almost ready and we are to be prepared for they are ready to strike. (Mercedes Benz commercial and Jaguar Commercials)

          • Drud

            I was not a fan of this year’s SuperBowl, alas, I am a lifelong Broncos fan.

          • Dan1959

            I tend to agree with this view. One thing to remember, this isn’t Iraq or Afghanistan. there won’t be a small insurgency. There are like, 40 million military veterans in the United States and a large number of them know what’s coming.

        • Dan1959

          The funny thing is that when I was got out of the army, I DEROS’d in Germany. I could still be there if I had wanted, but I came back here. Go figure. Of course Europe will collapse too.

          • El Pollo de Oro

            Dan: I have a lot of friends and business contacts over in Europe, and the situation in many parts of Europe is extremely bad (especially Spain and Greece). Spain has over 55% youth unemployment, which is a major recipe for disaster. The EU Ponzi scheme is a mess.

          • Dan1959

            :( I loved living in Germany, Bavaria specifically.

          • El Pollo de Oro

            It’s really sad how brutally the banksters have raped Europe. But some European countries will fare better than others. Iceland told the banksters to go to hell, and the Scandinavian countries that stayed off the euro made a smart decision. Spain and Greece, on the other hand, are screwed.

          • Dan1959

            I still have some Deutsche Marks and Swiss Franks from when I was over there, wonder if they are worth anything?

          • El Pollo de Oro

            Dan: Some collectors and historians would probably love to have the deutschemarks. And the Swiss francs are good to have because Switzerland (Tina Turner’s new home) is among the European countries that was smart enough to stay off the euro.

          • Dan1959

            Appreciate the tip! BTW like your avatar.

          • El Pollo de Oro

            Gracias! When I saw that banana republic flag, I said to myself, “That would be an appropriate avatar given what the country has become: a thoroughly corrupt Third World banana republic.” We’re a banana republic, and we don’t even grow our own bananas.

      • Adrian

        I think most people are way off the mark when imagining what scenario will cause the undoing of the status quo. It will probably be something seemingly inconsequential, and it will continue to snowball, maybe under the radar (like the Fukushima spill, which I bring up to use as a comparison, not to say that is going to cause the undoing). I surely don’t hope for a virus that wipes out humanity, but I would like to see a change of capitalism to where we instituted a social democratic system, having capitalism work for most people rather than the few and having everyone else living precarious existences, tied to the whims of something as inhuman and reified as “the market.” I would like to see the greedy rich lose their fortunes and eat a dose of humble pie (maybe become car wash buffers), but I don’t call for the deaths of anyone.

        • Susan

          also should look for a false flag event to start the market free fall, that will kill two birds with one stone, figuratively and literally, ways to reduce population and collapse the market so they can institute their One World Government crap

          • Adrian

            That’s not going to happen. Why would the elites destroy the economy, their source of wealth? For example, look how they panicked when the economy tanked in 2008, and coopted the government to save them and bail them out, threatening martial law would result if this did not happen? They were legitimately scared to death. This talk of one world government is nonsensical.

          • Dan1959

            Guys, it’s not about wealth. It’s about control. When you are a control freak, imagine the rush at knowing that you control 7 billion people and all the resources of the earth. It will be like heroine to them and like a heroine addict, they won’t care about their wealth, they already own everything.

          • Adrian

            How do you think they are able to control everyone? It is the fact that they own the wealth.

          • Dan1959

            Bingo! They already own the chessboard and they are about to call “check”.

          • Adrian

            Yes, and the interesting thing is they have many of the people trained to equate the interests of the rich as their own, even people who post on this board have made many such connections. Control the mind, and you have won.

          • Dan1959

            Normalcy Bias is at work here, people don’t want to believe that anything bad can happen here.

          • Adrian

            That’s exactly right.

          • Susan

            they want martial law though, dont you see? take away all the rights, control the people birth til death, no weapons to threaten them, and the one world government is their agenda so they can control the world, that is what Hitler wanted but failed to achieve, Obama is trying once again using his playbook to see if it will work this time around

        • Drud

          Neither do I and I didn’t want to give that impression at all. I do, however, see a massive death toll as inevitable as the overgrown, twisted, misshapen system comes crashing down. What really needs to happen (and what I am sure will happen over time) is de-centralization. Self-governing local communities will be the ultimate result of the collapse–although that may take decades to shake out. The, of course, humanity in all its infinite wisdom, will begin the whole empire building scheme again. Everything moves in cycles, we are simply coming to the end of a cycle that has repeated itself throughout the history of civilization. The truly unprecedented thing in all of this is the technology. The last time the world went through this the automobile was fairly new, the plane was in its infancy. the electrical grid was probably 1/100 its current size and the very first computer was still decades away, oh and there were no nuclear drones, missiles, smart bombs or nuclear weapons.

    • 02144pomroy

      Those “rich Jerks” aren’t stupid. They will just make more shorting the other side. It’s the dumb average guy with the 401(k) who is going to lose it all. 401’s don’t short. That’s why they tell you to “dollar cost average”

      and spend the next 10 years hoping just to break even.

    • Dan1959

      Sad part is that the rich are taking part in rigging the collapse. Unfortunately, they will be fine.

  • MeMadMax

    Apple should be nowhere near the price it’s at right now… They hold around 15% of the smartphone market and android is around 80%, depending on who you ask…

    Still, regardless, apple isn’t THAT big, so what in the world???

  • Chris

    Absolutely nothing has been learned from 2008 but then there never was any intention to go down a different path. It was simply paper over the cracks and carry on as usual until the next time.

    • Killer Virus

      Actually they doubled down on the same foolishness.

      • Eric Quintero

        They said: Go Big or Go Home. YOLO.

        • Killer Virus

          lol

  • XSANDIEGOCA

    First, there was the Pumpin’. Now, the Dumpin’,

  • sally mae

    Unemployed people cannot buy “stuff” that corporations manufacture. So they lay off more people increasing the number of folks who cannot afford their products. It is a loop doomed to repeat until someone wakes up and smells the coffee.

  • ezazz123

    In this deadly game of financial musical chairs, I hope ya’ll prepared when the Chinese music stops playing.

  • Mal Reynolds

    The game is rigged. The big boys front run your trades and know where your stops are. The normal market signals do not work anymore it is a complete mo-mo game (momentum). Might as well go to Vegas and play BlackJack or roulette.

  • DJohn1

    The market is dependent on profit. If there is no profit then the market declines. Fancy book keeping can keep it from declining for a little while. False books can do the same thing.
    False books are done by companies that put out overly good looking figures that are then corrected after the company books are published. It is a common practice.
    Eventually the truth comes out and the stock declines.
    The relaxation of the rules during the Bush years did not help.
    What you have is a floating crap game. Only someone removed the rules that kept it fairly honest.
    It is now beginning to come apart like a a chain of dominoes.
    I have heard that the profits from Christmas were one of the worst in history. Now that may or may not be true. If it is true then all the book keeping in the world will not hide it for long.

    So all those high numbers will eventually come down to truth.
    I stay away from the stock market for that reason. I am ignorant and the best place for amateurs is to stay away and invest in things with a steady return(if you can find them).
    The best stock advice I have ever had was from an old woman I never met. She kicked her stock advisers out and only invested in things she personally bought and liked. She was worth 26 million when she died a few years back. Her biographer shared her philosophy in her obit.
    She came out of the Great Depression of the 30s. She started with around $5,000 and lost half of it following the stock advice from “experts”. That was when she started investing in only things she had personally bought and liked.
    If she bought a GM car and didn’t like it, she withdrew all stock in GM. If she bought a Ford and liked it. She put her stocks in Ford.
    Eventually she had a wide portfolio of stocks of things she used in her home. She died a Spinster. Never married. But she was one smart woman in the way she invested.

  • Ivan Acosta

    This is nothing new. As I see it every time the chairperson for the Fed hiccups, burps, or farts (spray the febreze) the stock market reacts accordingly. Next week if the chairperson says something on the positive side the market skyrockets to new heights.

    • squashpants

      I have to say, Ivan, you might be right, judging from past experience with predictions of catastrophe that have not panned out.

  • Is this just a dip? Is this a correction (down 10%), or is this the start of a crash? Time will tell. The reality is that the stock market does not reflect reality. Main St. is not in good shape and nothing has been done about the crushing debt (except to pile on more debt). We are due a crash. It’s not if but when.

  • 2Gary2

    Let’s examine the GOP platform.
    1. Lower taxes on high earners and corporations.
    2. Militarism.
    3. Repeal of the ACA, with nothing of substance to replace it with.
    4. Reducing and/or privatizing social security.
    5. Anti-labor and anti union policies.
    6. Reducing the size of the electorate through restrictive voting policies.
    7. Outright denial of the possibility of man influenced climate change.
    8. Financial austerity, which has done wonders in Europe.
    9. Strong reductions in women’s reproductive rights.
    This
    is a regressive and repugnant political ideology. The stunning part is
    that if only their actual constituency voted for them, they could never
    win. Only because SO many Americans vote against their own self
    interest that these cretins are ever elected to office.

    This my friend is why conservatives are going down hard. The only thing in the GOP favor is the sheer stupidity of the American people.

    • 02144pomroy

      You’re nuts.

      • 2Gary2

        What did I say that was untrue? Yes the conservative agenda is nuts.

        • radarnj

          you are a clueless basement boy or a paid Obama troll. Progressives have destroyed this country starting in 1913 with the fed reserve and income tax.

        • Killer Virus

          Everything, because you are a copy and paste Obamabot. You are worse than a fanatical religious zealot who quotes the bible for every response with no original thought. You sound more like a bagger to me.

          • 2Gary2

            ok there hoss you really intellectually bested me there.

          • Killer Virus

            I know! Thank you.

  • piccadillybabe

    Remember those years so well, 2008 and 2009, ouch! For many of us (perhaps most) horrible times. The NASDAQ in 2007 was amazingly high and when it started to plunge, many of us thought, just normal ups and downs of the market, not to worry, it will come back. Well, as we all know, it did not come back, it just dropped precipitiously into no-man’s land in 2008-2009. Remember Obama saying at the time, “we will have to try to help those folks who lost so much get some of their retirement funds back.” Luckily, the NASDAQ is not in my radar anymore. I learned my lesson to never go there again ever. One “retirement specialist” at the time said it was a foolish move not to be in that market. Never listen to those fools, they know nothing and get paid to put people into double jeopardy. Let’s hope we do not have to see the day where companies like Apple, Google and Netflix are struggling to stay alive and their shares are half or less than what they are today. It does seem eerily reminiscent these days.

  • JAFO

    Folks … Mock if you so choose … But if you want to know how this all turns out read your bible. Think of eternal riches and the only gift that has eternal value. Salvation in Jesus Christ.

    • America No More

      Read the Obama prophecies.. the USA is finished. revelation12dotca

  • Brian Griffin

    I like to gauge the economy on the car lots right down the street from me where I live. Recently just last week two car lots that sell luxury cars just closed their doors for good. Now there’s two big empty lots. I see the small used car lots are still open. I see people there, but only on Saturday mornings. During the week I walk into the lots to see if people are buying cars. Nope not this week, I saw none. I saw a few people just looking, but they were looking at the price tags not the cars themselves. I see a big Dodge/Jeep lot is still open, but not too many people in there during the day, just on the weekends, also notice it’s the Obama/welfare types walking around looking at cars. I’m sure they’ll get something, since they have good credit, easy to make payments when you don’t actually have to do anything but get free rent/food/everything else. You can accumulate cash selling drugs on the side at the projects. Anyway looks like were screwed.

  • FallingKnifeCatcher

    The debt bubble is bursting and there’s nothing the Fed or other central banks can do about it.

  • Hammerstrike

    Hackers.

  • radarnj

    Yahoo=antique MSM Netflix= another video store Apple=yesterday’s tech Tesla=junk rich boy toy Google=sellout to NSA and Facebook=fad.

    • jaded

      Perfect.

      • radarnj

        appreciate that .. stay safe

        • xander cross

          How exactly do these companies makes money if they don’t produce anything?

          • PotHead69

            They sell ads for more unless crap

  • Bubba Johnson

    Another great article about big government and government regulations ruining this country. But we are all to blame because we all contributed to spoiling the next generation into believing if success does not come quickly and with little effort something must be wrong. An example would be the basketball player with a free education as long as he plays basketball for a few months. Anyway there he is on national TV saying he should also get all the free food he needs. This team wins the biggest game and the students riot.
    The people are spoiled or are they not???????

  • America No More

    Several prophets have been warned by the Lord that America is about to go over the cliff soon… read the Obama prophecies…. very sobering. revelation12dotca

    • Gay Veteran

      bilge

  • 2Gary2

    Republicans
    are terrified that more people are going to be able to see a doctor.
    They are scared that people will realize that the government can make
    positive things happen, and they hate the ACA because it is an example
    of the government doing something for someone other than wealthy
    billionaires.
    Republicans
    believe that government should only serve the interests of the wealthy.
    This belief is the basis for their whole job creators mentality. The
    people who aren’t job creators are “takers” who deserve nothing, and
    should be left to fend for themselves.

    I think God needs to send a flood to wash away conservatives. I saw the Noah movie and it looks like God destroyed conservatives except for the liberal progressive Noah and his family. Hey don’t feel bad conservatives you can always pray, let see how good that works out for you!

    • Killer Virus

      Bernie Sanders copy and paste straight from the Daily Kos.

      • 2Gary2

        yep and proud of it. You would do better to read the message as opposed to worrying where I cut and pasted it. I guess when you have nothing to refute my message you have to resort to straw man arguments. This is a good thing as it means I am correct and you are incorrect and not capable of critical thinking.

        • Killer Virus

          Derp derp ermkay 2gay2. I don’t read your garbage if I see how it is formated. I know with glance if it’s copy and paste. I read this. You actually posted your own thoughts, you should try it more.

          • 2Gary2

            Again I would urge you to read the message and stop obsessing where I got the message from. If I wanted I could easily change the format so it would look more like a normal post.

          • Killer Virus

            Okay 2g2, now move along and ask your mom to get you a juice box out of the fridge.

        • Padraigin

          Your straw man just caught fire and is now a smouldering cinder heap. Imagine believing the one, “Demonicrats” is any better than or different to the other, “Repulsivekins”. You are what is known as a useful useless sheople idiot eater. Time for a brain replacement, or should that be two, Gary missing 2!

    • radarnj

      well 2UGary … every knee will bow. The banksters friends demorepublicrats sold you out …

    • Padraigin

      You saw the Stupid movie, and recognised the leading role that you continue to play.

    • Mya View

      If that’s what you really believe, you need to go back to Sesame Street and start with an elementary education all over again.

      • 2Gary2

        I know its amazing just how morally corrupt conservatives really are.

        • Mya View

          Conservatives aren’t the one who are morally corrupt. We’re also smart enough to know that the ACA was going to hurt more people than it helped by making health care unaffordable for the only ones who are actually paying for it. If we’re losing jobs and incomes due to the law, common sense tells you there are fewer people to help take care of the needy. What happens when we can’t borrow any longer and no one is able to pay? Use your common sense, provided you have any, which it doesn’t appear to be.

          • 2Gary2

            the whole purpose of conservatism is to justify selfishness.

  • wk

    Stocks are up today

  • Lyin Ryin More

    I guess the entire population just figured out the NASDAQ is for the wealthy, Joe Citizen has less than a hundred in stocks, and to those who think they will ever get their 401 k- think again, they have already spent it, no one and I mean no one is playing with stocks, we are trying to make rent and you really want to know how are stock portfolio is doing? There is a huge Divestment boycott going on in the world against the US, most have been to busy with TV to grasp what is about to happen.

  • Trailer Park Investor

    tick-tock, Tick-Tock, TICK-TOCK, TICK-TOCK
    Can you here it? Time is slipping away, precious time.
    Precious time to prepare, that you will never get back. You will have lots of time later to apologize to your family WHY you did NOT take time to prepare, while you are hunting rat for dinner. You can explain to them how you thought it more important to buy that new 3D flat screen 80″ TV or that $80,000 sports car or those $1,000 suits yea that stuff will do you a lot of good later. Now, right NOW is all you have for sure, use it wisely.

  • charlestonvoice

    only after the election. Crashes are not permitted in an election year. If so, then “they” have lost control of the manipulations.

    • PotHead69

      Uh, you mean like 2008?

  • wallowy

    I’ve seen wealthy go to rags over night.
    Stocks are for the money you can afford to lose.
    You can rest assured the brokers get paid before you do.

  • Linda Warnke

    The whole market is fake. Fake profits pop up like magic after some creative juggling of fake facts and statistics. But nobody is MAKING anything! Nothing is being produced…the majority of the ‘money’ being made in the markets is a result of a small bunch handing it off to each other like a game of hot potato, with each skimming a ‘fee’ each time it passes through his hands.
    Just watch a few days of CNBC…you’ll notice something. When they get these CEO’s and such on, and discuss business, they talk of profit margins and shareholder value and quarterly expectations, which is expected. But they rarely talk about the business itself! What do you DO, or MAKE, that makes you the CEO of a business?
    Yeah, they’ll touch on it, throw in a comment about their newest sneaker or flavored water or whatever, but then it’s right back to profits and dividends and how do we get MONEY outta this thing!
    Our “business community” has no interest in business. They have instead chosen to specialize in one aspect of running a business, that is, the taking of profits. But they have no time or patience for all the other mundane aspects of running a business, like actually MAKING something people want, or retaining and growing their staff, staking a place in their communities (including the paying of taxes..) and planning for a future.
    Future? Ha! They can see only as far as the next quarter. As for next year? Well, that CEO is very likely to be working somewhere else, as the CEO of a totally different business than the previous one. Yes, our boy went from sneaker-making to running a chain of seafood restaurants, just like that. And two years ago, he was sitting at the helm of a snack-food corporation! How DOES he DO it?
    He can glide between businesses like an eel because, as a CEO, he isn’t required to know jack-shit about what KIND of business he’s running…in his world, they’re all the same. Just another field to harvest for what he’s after…money.
    No rational economy can function like this! Business is NOT all about profits, profits, profits. Profits, and finance in general, are ONE aspect of a successful business. Many great businesses take quite awhile to become profitable. And some businesses that provide desperately-needed goods or services may be lucky to break even. But we’d be the poorer for losing them…the “profits” produced are not always measured in dollars!
    But if all we care about is how to skim profits off of the productive efforts of others then we end up with the mess we have, which cannot continue for long. Allowing the mentally ill persons in high finance to determine what it is that means ‘success’, and letting them set up this Rube Goldberg monstrosity of an economy was stupidity on an epic scale. But we wanted to believe them when they said all this would be “tricking down” any day now…

  • el guapo

    a horse is a horse, of course, of course…

    Look, what they’re doing is setting up WWIII. They NEED the economic collapse to happen to justify America’s entrance into another major world war. Sound familiar? Hey it “worked last time”, right? They’re just following a script. It bores me.

    a horse is a horse, of course, of course…

  • Kim

    The Nasdaq is in total free fall today.

  • duu daa

    Made up numbers in, junk out. 0 or 50,000 its meaningless.

  • Rob W

    “The Federal Reserve practice of Delphically divulging its intentions ought to be understood as the master pretense of US economic life — the delusion that wise persons are actually in control of anything. The result of this guidance continues to be the mis-pricing of everything, especially the cost of money as represented in the operations of debt, and hence the value of everything denominated in money.”

  • arizonadiane

    What is happening is George Soros. He had said weeks ago that this was going to happen, and considering what he did in Europe, he is probably the instigator.

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