The Fed Is Spooking the Markets Not China

Fasten your seat belts, this ride is getting interesting. Last week the Dow Jones Industrial Average was down more than 1,000 points, notching its worst weekly performance in four years. The sell-off took the Dow Jones down more than 10% from its peak valuations, thereby constituting the first official correction in four years. One third of all S&P 500 companies are already in bear market territory, having declined more than 20% from their peaks. Scarier still, the selling intensified as the week drew to a close, with the Dow losing 530 points on Friday, after falling 350 points on Thursday. The new week is even worse, with the Dow dropping almost 1,100 points near the open today before cutting its losses significantly. However, no one should expect that this selling is over. The correction may soon morph into a full-fledged bear market if the Fed makes good on its supposed intentions to raise interest rates this year. Have no illusions, while most market observers are quick to blame the sell-off on China, this market was given life by the Fed, and the Fed is the only force that will keep it alive.

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China currency war fears causing collapse in U.S. stock market

(NaturalNews) Americans and people all over the world are still traumatized from the 2007 and 2008 crash that altered world economies. In many ways, we are still recovering from that crisis and countless people and regions worldwide are still recovering. Think Greece, and Brazil; these countries have never fully recovered. So when the headlines today are sounding the alarm about U.S. stock markets taking a plunge, people everywhere are bracing themselves for the worst possible scenario. Can we really weather another 2008 crash? (Article republished from Collapse.news.) Continue reading

Why Are So Many People Freaking Out About A Stock Market Crash In The Fall Of 2015?

In rare cases, 90% of an article or one in its entirety will remain posted. This is one of those cases.

 

Is the stock market going to crash by the end of 2015?  Of course stock market crashes are already happening in 23 different nations around the planet, but most Americans don’t really care about those markets.  The truth is that what matters to people in this country is the health of their own stock portfolios and retirement accounts.  There are a lot of people out there that are very afraid of what could happen if the money that they have worked so hard to save gets wiped out in a sudden financial collapse.  And right now there is an unprecedented amount of buzz about the potential for a giant stock market crash by the end of this calendar year.  In fact, I don’t think that I have ever seen more experts come out with bold predictions that a stock market crash will happen within a very specific period of time. Continue reading

The ‘Death Cross’ Forms on the Dow Chart

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The Dow Jones Industrial Average’s biggest decline in a month is proving the final nail in its death cross. Continue reading

12 Signs That An Imminent Global Financial Crash Has Become Even More Likely

Did you see what just happened?  The devaluation of the yuan by China triggered the largest one day drop for that currency in the modern era.  This caused other global currencies to crash relative to the U.S. dollar, the price of oil hit a six year low, and stock markets all over the world were rattled.  The Dow fell 212 points on Tuesday, and Apple stock plummeted another 5 percent.  As we hurtle toward the absolutely critical months of September and October, the unraveling of the global financial system is beginning to accelerate.  At this point, it is not going to take very much to push us into a full-blown worldwide financial crisis.  The following are 12 signs that indicate that a global financial crash has become even more likely after the events of the past few days… Continue reading

Greek debt default is now inevitable, government officials say prepare now for systemic collapse

(NaturalNews) We have been tracking and reporting on the worsening economic situation in Greece now for more than a year, and it appears as though our earlier predictions – that the broke Mediterranean nation would eventually default on bailout loans it received in 2012, under different leadership – will happen.

Reuters reported Monday that Greece will not pay a 1.6 billion-euro installment it owes on its loan that is due June 30, according to a Greek government official who confirmed the default yesterday, further highlighting the overall severity of the country’s financial crisis. Continue reading

Why We’re Headed Toward a “Cashless Society”

The Dow is back under 18,000 points after yesterday’s 178-point – or 1% – drop.

Gold continues to wander around, apparently lost. More on that below…

Our long-term stock market indicator, developed for us by our chief researcher and former ValueLine stock market analyst Stephen Jones, is flashing a warning. Continue reading

Why you should care that Robert Prechter is warning of a ‘sharp collapse’ in stocks

Who is Robert Prechter, and why should investors care that he is warning them to be on high alert for a potential collapse in the stock market?

The president of Elliott Wave International, Prechter may not be a household name on Main Street, but he’s widely known on Wall Street as the foremost authority on the Elliott Wave principle, a forecasting methodology used by generations of technical analysts that is based on the belief that financial markets trend in five waves, and retrace in three waves….

Prechter is also the executive director of the Socionomics Institute, founded to study how those same wave patterns define changes in social mood and govern social events. Continue reading

There Will Be No 25-Year Depression

What we have here is not a failure of Capitalism, but a failure of experimenting with Socialism that is now resulting in the breakdown of society.

As geopolitical analyst and expert, JR Nyquist, once put it, America has fallen victim to Crony Capitalism, which is different than Capitalism itself.

 

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How it all works in crony heaven – until it doesn’t anymore – via bastiatinstitute.org

 

 

Good and Bad News

Today, we have bad news and good news. The good news is that there will be no 25-year recession. Nor will there be a depression that will last the rest of our lifetimes.

The bad news: It will be much worse than that. On Monday, the Dow rose another 43 points. Gold seems to be working its way back to the $1,200 level, where it feels most comfortable.

Old People Are Dead Wood

First, people are getting older. Especially in Europe and Japan, but also in China, Russia and the US. As we’ve described many times, as people get older, they change. They stop producing and begin consuming. Continue reading

Ten warning signs of a market crash in 2015

Stock markets opened lower on the first day of trading of 2015, and the credit markets that forewarned the 2007 crash are showing signs of strain

The FTSE 100 slid on the first day of trading in 2015. Here are 10 warning signs that the markets may drop further

Vix fear gauge

For five years, investor fear of risk has been drugged into somnolence by repeated injections of quantitative easing. The lack of fear has led to a world where price and risk have become estranged. As credit conditions are tightened in the US and China, the law of unintended consequences will hold sway in 2015 as investors wake up. The Vix, the so-called “fear index” that measures volatility, spiked to 18.4 on Friday, above the average of 14.5 recorded last year. Continue reading

U.S. Stocks Tumble as Volatility Returns

On Thursday, fears seemed to prevail once again, with the Dow Jones Industrial Average tumbling more than 300 points, reversing Wednesday’s big rally.

It was the third move in a row of more than 200 points by the blue-chip index—a roller-coaster ride that ranks as the most volatile stretch for the Dow since August 2011 Continue reading

The Failure of the American Perspective

World War III may well be underway just as surely as it was on 26 November 1941 when Japanese Admiral Yamamoto set sail for Pearl Harbor two weeks before the formal attack. Then, like now, Americans seemed blissfully unaware that their lives were about to change forever.

Now, it is even worse, as American arrogance assumes we will always be the world’s sole superpower. We tend to look at the world exclusively from our own perspective and that can be very dangerous. A variety of headlines demonstrate this, all of which assume American supremacy. One example, now obvious in hindsight, is when the President’s spokesman Jay Carney warned against buying and actually suggested shorting Russian stocks in light of U.S. sanctions on March 18. From the time of his comments until the end of the month, Russian stocks increased over 6%, far ahead of the U.S. stock market over the same period. Even as the Administration was warning against buying Russian shares, some very successful investors have recommended them. Continue reading

Scary 1929 market chart gains traction

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart. Continue reading

Is your money safe at the bank? An economist says ‘no’ and withdraws his

And he’s right about the FDIC having less funds available than what it needs to cover its obligations.

Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.

Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1.

Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. That’s because I believe that when the Fed intervenes in markets, it has two effects — both negative. First, it decreases overall wealth by distorting markets and causing bad investment decisions. Second, the members of the Fed become reverse Robin Hoods as they take from the poor (and unsophisticated) investors and give to the rich (and politically connected). These effects have been noticed; a Gallup poll taken in the last few days reports that only the richest Americans support the Fed. (See the table.) Continue reading