Weeks ago, we first warned that the collapse in Oil was a BIG sign of trouble brewing in the financial system.
Indeed, in the larger picture, Oil just called “BS” on the whole claim that any economic growth or recovery post-2009 was legitimate. For five years, Oil prices remained elevated, suggesting that there was some kind of economic recovery underway… that there was growth, however anemic.
We now know that this was total nonsense. Oil has lost 40%+ of its price in less than four months. This is a CLEAR SIGNAL that the 2009-2014 asset price bubble is bursting.
What does this all mean? What we’ve been saying for years now… that the entire “recovery” story was total BS and that the Fed has made things worse than before. As always, stocks are the last to “get it.” But we wouldn’t be surprised to see a crash in stocks in the coming months.
Full article: Oil Is a Warning of What’s to Come (Zero Hedge)