3 Things That Happened Just Before The Crisis Of 2008 That Are Happening Again Right Now

Real estate, oil and the employment numbers are all telling us the same thing, and that is really bad news for the U.S. economy.  It really does appear that economic activity is starting to slow down significantly, but just like in 2008 those that are running things don’t want to admit the reality of what we are facing.  Back then, Fed Chair Ben Bernanke insisted that the U.S. economy was not heading into a recession, and we later learned that a recession had already begun when he made that statement.  And as you will see at the end of this article, current Fed Chair Jerome Powell says that he is “very happy” with how the U.S. economy is performing, but he shouldn’t be so thrilled.  Signs of trouble are everywhere, and we just got several more pieces of troubling news. (Read More...)

Much Worse Than Expected: Experts Shocked As New Home Sales Plunge 8.9 Percent

The U.S. economy is definitely deviating from the script, and we just got more evidence that “Housing Bubble 2” is bursting.  Experts were expecting that new home sales in the U.S. would rise in October, but instead they plunged 8.9 percent.  That number is far worse than anyone was projecting, and many in the real estate industry are really starting to freak out.  And to be honest, things look like they are going to get even worse in 2019.  One survey found that the percentage of Americans that plan to buy a home over the next 12 months has fallen by about half during the past year.  Mortgage rates have steadily risen as the Federal Reserve has been hiking interest rates, and at this point most average Americans have been completely priced out of the market.  Home prices are going to have to come way down from where they are right now, and just as we witnessed in 2008, rapidly falling home prices can put an extraordinary amount of stress on the financial system. (Read More...)

Now Even Paul Krugman Of The New York Times Is Admitting That The Next Crisis Will Likely Be Worse Than 2008

There is a growing consensus that once the next economic crash finally arrives that it will be significantly worse than what we experienced in 2008.  This is something that I have been saying for a very long time, but now even mainstream economists such as Paul Krugman of the New York Times are admitting the reality of what we are facing.  And without a doubt, the stage is set for a historic collapse.  We are living at a time when everything is in a bubble – the current housing bubble is much larger than the one that collapsed in 2008, student loan debt has now surpassed the 1.5 trillion dollar mark, corporate debt has doubled since the last financial crisis, U.S. consumers are 13 trillion dollars in debt and the federal government is nearly 22 trillion dollars in debt.  And even though stock prices have fallen dramatically in recent weeks, the truth is that stocks are still wildly overpriced.  What goes up must eventually come down, and Paul Krugman insists that we “are poorly prepared to deal with the next shock” and that “there’s good reason to think it will be worse”… (Read More...)

General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble

America’s twin economic “generals” are both in very deep trouble.  General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire planet.  But now it is drowning in so much debt that it may be forced into bankruptcy.  General Motors was founded in 1908, and at one time it was the largest automaker that the world had ever seen.  But now it is closing a bunch of factories and laying off approximately 14,000 workers as it anticipates disappointing sales and a slowing economy.  If the U.S. economy really was “booming”, both of these companies would probably be thriving.  But as you will see below, both of them have been victimized by the exact same Ponzi scheme, and both firms are sending us very clear signals that the U.S. economy is heading for troubled waters. (Read More...)

Russia And Ukraine Are On The Brink Of War – And Why That Could Lead To World War 3

A respected foreign journalist living in Ukraine is warning that a war that most Americans cannot even imagine “teeters on the razor thin edge of becoming real”.  When Russia opened fire on Ukrainian Navy vessels and captured three of their ships, it made headlines all over the globe.  An emergency meeting of the UN Security Council was hastily arranged for Monday at 11 AM, and hopefully there will be a positive outcome from that meeting.  Because right now Moscow and Kiev are on the brink of war, and once a Russian invasion happens there will be no turning back.  At that point the U.S. would have a major decision to make, and if we chose to defend Ukraine that could mean that we would suddenly find ourselves fighting World War 3. (Read More...)

George Soros Sold Huge Amounts Of Facebook And Netflix Just Before Tech Stocks Crashed

George Soros avoided a loss of more than 17 million dollars by dumping shares of Facebook, Netflix and Goldman Sachs just before the big crash started happening.  In other words, he made out like a bandit by selling at the peak of the market.  Is he smarter than all the rest of us, did he have some inside information, or was he simply lucky?  In recent months, tech stocks have lost approximately a trillion dollars in value, and many investors have been absolutely devastated.  But not George Soros.  According to the most recent filing with the SEC, Soros Fund Management was able to dump shares in Facebook and Netflix just in time… (Read More...)

Stock Market Crash: The Dow Has Fallen Nearly 2,500 Points And FAANG Stocks Have Lost A TRILLION Dollars In Value

Thanksgiving week was not supposed to be like this.  Normally things are slow in the days leading up to Thanksgiving as investors prepare to gorge themselves with turkey and stuffing as they gather with family and friends.  But this year the stock market is crashing, and Wall Street is in panic mode.  On Tuesday, the Dow Jones Industrial Average closed at 24,465.64, which is nearly 2,500 points lower than the all-time high of 26,951.81 that was set in early October.  But as I noted yesterday, what has been happening to tech stocks is even more dramatic.  Each one of the FAANG stocks is now down by more than 20 percent, and they have combined to lose more than a trillion dollars in value.  We haven’t seen anything like this since the financial crisis of 2008, and at this point all of Wall Street’s gains for 2018 have been completely wiped out. (Read More...)

All The FANG Stocks Are Now In A Bear Market And Facebook Investors Have Already Lost 39 Percent Of Their Paper Wealth

These large stock market declines are starting to become a regular thing, and tech stocks are getting hit particularly hard.  But we have been in a bull market for such a long time that many investors are having a difficult time comprehending what is happening.  Many just keep believing that their beloved tech stocks will eventually bounce back because they just can’t accept the fact that the party is over.  At this point, all of the “FANG stocks” have officially entered bear market territory.  Facebook is down 39.5 percent from their 52 week high, Amazon is down 25.4 percent, Netflix is down 35.6 percent and Google is down 20.3 percent.  And since many throw in Apple to make the acronym “FAANG”, we should also note that Apple’s stock price is now down more than 20 percent from the peak.  The tech stock crash that so many have been waiting for has arrived, and many analysts believe that it is going to get a whole lot worse. (Read More...)

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