Guest Post: 11 Economic Crashes That Are Happening Right Now

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

The stock market is not crashing yet, but there are lots of other market crashes happening in the financial world right now.  Just like we saw back in 2008, it is taking stocks a little bit of extra time to catch up with economic reality.  But almost everywhere else you look, there are signs that a financial avalanche has begun.  Bitcoins are crashing, gold and silver are plunging, the price of oil and the overall demand for energy continue to decline, markets all over Europe are collapsing and consumer confidence in the United States just had the biggest miss relative to expectations that has ever been recorded.  In many ways, all of this is extremely reminiscent of 2008.  Other than the Bitcoin collapse, almost everything else that is happening now also happened back then.   So does that mean that a horrible stock market crash is coming as well?  Without a doubt, one is coming at some point.  The only question is whether it will be sooner or later.  Meanwhile, there are a whole lot of other economic crashes that deserve out attention at the moment.

The following are 11 economic crashes that are happening RIGHT NOW...

#1 Bitcoins

As I write this, the price of Bitcoins has fallen more than 70 percent from where it was on Wednesday.  This is one of the reasons why I have never recommended Bitcoins to anyone.  Yes, alternative currencies are a good thing, but there are a lot of big problems with Bitcoins.  Why would anyone want to invest in a currency that could lose 70 percent of its purchasing power in just two days?  Why would anyone want to invest in a currency where a single person can arbitrarily decide to suspend trading in that currency at any time?

An article by Mike Adams of Natural News described some of the things that we have learned about Bitcoins this week...

#1) The bitcoin infrastructure cannot handle a selloff. Once the rush for the exits gains momentum, you will not be able to get out. Only those who sell early will be able to exit the market.

 

#2) The bitcoin infrastructure is subject to the whims of just one person running MTGox who can arbitrarily decide to shut it down whenever he thinks the market needs a "cooling period." This is nearly equivalent to a financial dictatorship where one person calls the shots.

 

#3) Every piece of bad news will be "spun" by exchanges like MTGox into good-sounding news. As bitcoin was crashing yesterday by 60% in value in mere hours, MTGox announced it was a "victim of our own success!" So while bitcoin holders watched $1 billion in market valuation evaporate, MTGox called it a success. Gee, then what would you call it when bitcoin loses 99%? A "raging" success?

#2 Gold

The price of gold was down by about 4 percent on Friday.  Gold has now fallen below $1500 an ounce for the first time since July 2011.  Overall, the price of gold has fallen by about 10 percent since the beginning of the year, and it is about 22 percent below the record high set back in September 2011.

Yes, the price of gold is likely being pushed down by the banksters.  And yes, gold is a fantastic investment for the long-term.  But there will be times when the price of gold does fall dramatically just like we saw back in 2008.

#3 Silver

The price of silver fell by about 5 percent on Friday.  If it falls much more it is going to be at a level that presents a historically good buying opportunity.

Just like gold, there will be times when the price of silver swings dramatically.  But the truth is that silver is probably an even better long-term investment than gold is.

#4 Oil

The price of oil declined by about 3 percent on Friday.  Many will consider this a positive thing, but just remember what happened back in 2008.  Back then, the price of oil dropped like a rock.  If the price of oil gets below $80, that could very well be a clear signal that a major economic crisis is about to happen.

#5 Consumer Confidence

As I mentioned above, consumer confidence in the U.S. just had its biggest miss relative to expectations that has ever been recorded.  The following is from an article posted on Zero Hedge on Friday...

Well if this doesn't send the market into all-time record high territory, nothing ever will: seconds ago the UMich Consumer Confidence plummeted from 78.6 to 72.3, on expectations of an unchanged 78.6 print. This was not only a 9 month low in the index, but more importantly the biggest miss to expectations in recorded history!

#6 Retirement Accounts

According to Wells Fargo, the number of Americans taking loans from their 401(k) accounts has risen by 28 percent over the past year...

Through an analysis of participants enrolled in Wells Fargo-administered defined contribution plans, the bank announced today that in the fourth quarter of 2012, there was a 28 percent increase in the number of people taking loans out from their 401(k) and that the average new loan balances increased to $7,126 from those taken out in the fourth quarter of 2011 - a 7% increase from $6,662.

 

Of the participants who took out loans, the greatest percentage were to people in their 50s (34.2%), followed by those in their 60s (28.9%) and then by those in their 40s (27.3%). The increase among participants in their 50s was nearly double the increase among those under 30. This is based on an analysis of a subset of 1.9 million eligible participants in retirement plans that Wells Fargo administers.

 

“The increased loan activity particularly among older participants is concerning because those are the years when workers can start to make ‘catch-up’ contributions and really need to focus on preparing for retirement,” said Laurie Nordquist, director of Wells Fargo Retirement.

#7 Casino Spending

Casino spending is declining again.  Many people (including myself) would consider this to be a good thing, but casino spending is also one of the most reliable indicators about the overall health of the economy.  Remember, casino spending crashed during the last financial crisis as well.  That is why it is so alarming that casino spending is now back to levels that we have not seen since the last recession.

#8 Employment In Greece

Over in Europe, things just continue to get worse.  According to numbers that were just released, the unemployment rate in Greece has soared to 27.2 percent, which was up from 25.7 percent the previous month.  That means that the unemployment rate in Greece rose by 1.5 percent in just a single month.  That is not just a crash - that is an avalanche of unemployment.

#9 European Financial Stocks

European financial stocks have been hit particularly hard lately.  And for good reason actually - most of the major banks in Europe are essentially insolvent at this point.  This week, European financial stocks fell to seven month lows, and this is probably only just the beginning.

#10 Spanish Bankruptcies

According to Reuters, the number of Spanish companies going bankrupt has risen by 45 percent over the past year...

A record number of Spanish companies went bust in the first quarter of 2013 as companies remained under intense pressure from tight credit conditions and meager demand, a study showed on Monday.

 

The 2,564 firms filing for insolvency proceedings in first three months of the year was a 10 percent rise from the previous quarter and a 45 percent increase on the same period in 2012, the survey by credit rating agency Axesor said.

#11 Demand For Energy

Just like we saw back in 2008, the overall demand for energy in the United States is falling rapidly.  There are some shocking charts that prove this that were recently posted on Zero Hedge that you can find right here.

Yes, it is good for people to use a bit less energy, but it is also a clear indication that economic activity is really starting to slow down.

But despite everything that you have just read, the Dow and the S&P 500 have been setting new record highs.

And if you listen to the mainstream media, you would think that this stock market bubble can continue indefinitely.

Fortunately, there are a few voices of reason out there.  For example, just check out what Marc Faber recently told CNBC...

In the near-term, the U.S. stock market is overbought and adding that any more near-term gains portend big trouble for the market, "The Gloom, Boom & Doom Report" publisher Marc Faber told CNBC on Monday.

 

"If we continue to move up, the probability of a crash becomes higher," Faber predicted in a "Squawk Box" interview, saying it could happen "sometime in the second half of this year."

As I have written about previously, a bubble is always the biggest right before it bursts.  I hope that we still have at least a little bit more time before it happens, but I wouldn't count on it.

The economic fundamentals tell us that the stock market should be plunging, not rising.  At some point the boys over on Wall Street will get the message and the market will catch up to reality very, very rapidly.

But for the moment, the American people are feeling really good.  According to CNN, Americans are now more optimistic than they have been in six years...

As the stock market continues to show record highs, the number of Americans who say things are going well in the country has reached 50% for the first time in more than six years, according to a new national survey.

So what do you think will happen for the rest of the year?

Do you think that the good times will continue to roll, or do you believe that the bubble is about to burst?

A Market Crash Is Coming

 
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Fri, 04/12/2013 - 19:50 | 3443400 freewolf7
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Ready as I'm gonna be...

Fri, 04/12/2013 - 20:02 | 3443438 TeamDepends
TeamDepends's picture

We're on an express elevator to hell- goin' down!

Fri, 04/12/2013 - 20:09 | 3443452 Ineverslice
Ineverslice's picture

 

Someone wake up Hicks...

 

Fri, 04/12/2013 - 20:11 | 3443463 TeamDepends
TeamDepends's picture

Is this going to be a standup fight, sir, or another bughunt?

Fri, 04/12/2013 - 20:15 | 3443492 knukles
knukles's picture

Lies, alll lies.
Somebody whoever it was on CNBS said that too many people were reading Zerohedge and not listening enough to whatever, that the world economy is fixed and everything's all OK.
So I'm going to crawl in bed, pull the covers over my head and wait until the Ativan, Zoloft and NyQuil kick in.
Keep repeating after me...
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.
Everything's all fucking hunky dorey, asshole.

(soft crying sounds emanating from under covers)

Fri, 04/12/2013 - 20:36 | 3443550 Downtoolong
Downtoolong's picture

Heard something similarly disgusting on the MSM today myself. One jackass money manager actually tried to use the argument that the reason people hadn't rushed back into the stock market (until now) is because they were thinking about it to much. In other words, all you have to do to get rich is look at the trend and jump on it. And, of course, that is exactly why a perfect trend has been manufactured.

Fri, 04/12/2013 - 20:42 | 3443565 markmotive
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Actually, I think the comment is subtly referring to average investors as sheep. They wait until everyone else is doing something and they wait for confirmation before moving in.

There's a difference between the way the rich and poor think.The poor wait to see what the rich do and then copy. The rich see what the poor are doing and then do the opposite.

http://www.planbeconomics.com/2013/04/documentary-super-rich-greed-game....

Fri, 04/12/2013 - 20:42 | 3443566 YBNguy
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He forgot to count most Liberal-Progressive cities.

Fri, 04/12/2013 - 21:55 | 3443626 SafelyGraze
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re: bitc

buying the dips

but which undervalued asset to buy? the bonds or the equities?

Fri, 04/12/2013 - 22:22 | 3443829 Shocker
Sat, 04/13/2013 - 00:00 | 3444013 savagegoose
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re bitcoin

 

" Gee, then what would you call it when bitcoin loses 99%? A "raging" success? "

 

no a true   challenge to fiat

Sat, 04/13/2013 - 00:13 | 3444032 Scarlett
Scarlett's picture

First on Italy, now this:

 

German man caught 'smuggling' gold at Greek airport

http://www.bbc.co.uk/news/world-europe-22127616

Sat, 04/13/2013 - 08:02 | 3444241 GetZeeGold
GetZeeGold's picture

 

 

Had he sewn it into his clothes it would have been a clean getaway - Chuck Munger

Sat, 04/13/2013 - 10:42 | 3444416 Pinto Currency
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Physical gold disappearing:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Ma...

 

Interview with Andrew Maguire LBMA gold market insider and whistle blower re. physical market desperation:

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/4/13_Andre...

Sat, 04/13/2013 - 12:49 | 3444630 TuesdayBen
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According to what I've been reading about US oil/gas fracking/horizontal drilling, the unprecedented oil boom now getting underway in this country - a MASSIVE, MASSIVE boom generating huge income - will not just offset but reverse any current US economic weakness.

The US will be the world's largest oil producer in 4 years.  The US will dominate world markets for natural gas.

Bear this all in mind.  And read up on the topic or be burned...  I am reading all I can right now....

Sat, 04/13/2013 - 13:40 | 3444770 Pinto Currency
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Implications of the Obama Administration and Fed Reserve tag team to kill the dollar:

 

https://www.youtube.com/watch?v=_F7bM63ZfWQ

 

They will create chaos.

Sat, 04/13/2013 - 16:17 | 3445082 kchrisc
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However, they have not factored in that the guillotine WILL rise out of said chaos.      hujel

Sat, 04/13/2013 - 17:18 | 3445182 Pinto Currency
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It probably will, but that is not going to solve the greater problem created by the psychopaths.

And they are psychopaths:

http://www.infowars.com/italian-supreme-court-president-blames-bilderberg-for-terrorist-attacks/

Sat, 04/13/2013 - 20:21 | 3445497 tango
tango's picture

Tuesday.

It's been posted before but it's worth repeating.  Simply owning natural resoures does not create prosperity.   If that were the case, Nigeria would not be mired in miserable poverty, Venezuela would not be a train wreck and Russia would be the wealthiest nation on Earth.  It is culture, management, planning and goals that create wealth. If history is any teacher, then one need look no farther than Spain, Portugal, Arabia, CHina and the Netherands - all once great empires with massive wealth that in the end were unsustainable.   

The new fossil fuel may even prove harmful if it detracts funding and attention from alternative fuels.  "Why bother since we have all this natural gas / shale oil?"   Recall that in 1975 the UK said the North Sea oil would last for 200 years.  Britain now imports (and desperate for that 27% of the budget that came from oil). 

Sun, 04/14/2013 - 04:44 | 3446110 TuesdayBen
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Point well taken

Sat, 04/13/2013 - 16:14 | 3445075 kchrisc
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I once, several years ago, had a sheeple tell me, in response to my assertion that the drug war is a violation of people's natural property rights, that it's not bad because it's not gold they're taking.

I wonder what she thinks now that they have moved on to gold and silver.

Government, the idea and all governments are just a criminal band of thugs and thieves hiding behind a lie and lies while they live off of you and yours until you become a drag or threat and they need to kill you.            hujel

Sat, 04/13/2013 - 05:44 | 3444209 draug
draug's picture

The remark about mt.gox is pretty disingenuous as the original comment was clearly about their technical troubles (caused by too much traffic), not about the market crash. Though guess it's easy to be "right" when you take everything out of context.

Sat, 04/13/2013 - 08:10 | 3444271 GetZeeGold
GetZeeGold's picture

 

 

That almost made sense......almost.

Sat, 04/13/2013 - 13:42 | 3444764 draug
draug's picture

Ok, with a teaspoon:

"We crashed because of our success" - our servers were overloaded with legitimate traffic and stopped working. This is what Mt. Gox said. High levels of traffic to a website is generally regarded as "success" by online businesses. This came in response to earlier speculation of a DDoS attack.

"BTC's value crashed because it's successful" - this is what the dumbass writing this article THOUGHT they were saying, which doesn't make any sense, and thus is incorrectly used as "evidence" that the Mt. Gox guys are incompetent or worse.

Sun, 04/14/2013 - 06:16 | 3446154 GetZeeGold
GetZeeGold's picture

 

 

 

They Call The Wind Mariah

Sat, 04/13/2013 - 00:02 | 3444017 Terminus C
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Bitcoin is a test.

Here comes the real thing re: digital currency.

http://developer.mintchipchallenge.com/

but it's anonymous.... and infinitely divisible... what can possibly go wrong.  The irony here is they gave the winners of the challenge... gold bullion.  WTF?

Sat, 04/13/2013 - 00:25 | 3444046 Croesus
Croesus's picture

It's simple....pay cash, and there's no way for Big Brother to know what you do. This is why Big Brother does not want you to have cash.

This also should prove, once and for all, that BITCOIN was not, and is not, "anti-establishment", as claimed by many of its supporters.  


Sat, 04/13/2013 - 01:55 | 3444107 Deo vindice
Deo vindice's picture

Every time you pay with cash you are doing a small part to frustrate the system.

Not to mention, you do yourself a big favour by staying debt free.

Sat, 04/13/2013 - 03:10 | 3444152 francis_sawyer
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Ask for your change in 'nickles' while you're at it... Nickles ain't joobux...

Sat, 04/13/2013 - 08:01 | 3444246 GetZeeGold
GetZeeGold's picture

 

 

 

Do think we're all Kyle Bass?

Who the hell can afford nickels in this economy?

Sat, 04/13/2013 - 09:38 | 3444340 francis_sawyer
francis_sawyer's picture

As long as they keep making 'em the same way they have since 1945, I'll keep trading paper notes for hard goods & asking for the change in nickles...

Sat, 04/13/2013 - 10:16 | 3444379 SilverDOG
SilverDOG's picture

 

 

GetZeeGold

 

 

Had a big pile of nickels.

 

Took to bank yesterday, then went to LCS and bought pile of mercury dimes.

 

Bye bye nickels. Worth less than face value.

 

 

Sat, 04/13/2013 - 11:31 | 3444487 GeezerGeek
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Back in the 1830s or so gold coins were actually worth less as gold than the face value indicated. This was done on purpose to foster gold coin usage and keep the coins in circulation rather than being kept out of circulation. This was the result of another great government intervention, the Coinage Act of 1834.

Sat, 04/13/2013 - 11:42 | 3444504 francis_sawyer
francis_sawyer's picture

Nickles work in an inflationary or deflationary scenario... The comment above that they're worth less than face [paid in joobux] is a non-starter...

Sat, 04/13/2013 - 13:27 | 3444736 SilverDOG
SilverDOG's picture

francis_sawyer,

 

 

Silver outperforms nickel in either flationary scenario.

 

Nickels may be purchased @ face value, when nickel commodity is above face value.

 

Sell the SH&^T and BTFD.

 

Bank will hold enough nickel for you. Silver... nope.

 

Check financial IQ.

 

I did not thumb down. Words are enough.

 

Sat, 04/13/2013 - 13:18 | 3444713 Imminent Crucible
Imminent Crucible's picture

"Nickles ain't joobux..."

Now you got me all confused. If a nickel is the twentieth part of a Federal Reserve Note dollar....doesn't that make it a Federal Reserve Nickel?

You devious closet Zionist! It's a diabolical campaign to get people into joo-nickels and lose their souls. Is there no decency left in the country?

Sat, 04/13/2013 - 17:26 | 3445200 TraderTimm
TraderTimm's picture

@francis " < insert race tag >  " sawyer

Oh man, that must've felt good to you, yeah? You managed to go a few days without dropping one. I'm proud of you, but clearly you have a lot more work to do...

Sat, 04/13/2013 - 02:13 | 3444117 BTFDemocracy
BTFDemocracy's picture

This is WTF territory.

Sat, 04/13/2013 - 07:33 | 3444248 GetZeeGold
GetZeeGold's picture

 

 

 

About to hit the outer-bands of.......ohh crap!

Fri, 04/12/2013 - 21:49 | 3443751 NoDebt
NoDebt's picture

He forgot to count Dr. Copper, more importantly.

Go out there with all those things runnin' around?  No thanks.  Send Bishop.

Fri, 04/12/2013 - 22:40 | 3443776 DoChenRollingBearing
DoChenRollingBearing's picture

Central Bank Press Release here:

 

http://www.zerohedge.com/news/2013-04-12/great-unrotation-us-gdp#comment-3443766

EDIT:

And an article here:

"Today's Massacre"

http://tinyurl.com/dxqvvfr

 

Sat, 04/13/2013 - 12:06 | 3444549 mick_richfield
mick_richfield's picture

 

The poor wait to see what the rich do and then copy. The rich see what the poor are doing and then do the opposite.

So everybody is still basing their decision on others?

Good thing I'm here!  I ignore what everybody else is doing until I can figure out what makes sense, then I do that.

( Which is silver, stored food, farmland, permaculture, firewood, ducks, diesel, spices, solar power for well pump, & reloading equipment, if you must know. )

 

Sat, 04/13/2013 - 13:21 | 3444720 Imminent Crucible
Imminent Crucible's picture

When the SHTF, the BATF will be coming to your farm first, allowing me time to slither over the border from Douglas into Agua Prieta by dark of night.  I do appreciate your thoughtfulness.

Fri, 04/12/2013 - 20:42 | 3443569 lotsoffun
lotsoffun's picture

i don't know about zoloft - but i go to sleep at night knowing that cramer loves me.

Fri, 04/12/2013 - 21:44 | 3443741 The Second Rule
The Second Rule's picture

Cramer's sleep remedy: "bottle of scotch on a dirty linoleum floor."

Sat, 04/13/2013 - 20:44 | 3445565 TeamDepends
TeamDepends's picture

I say we grease this rat-fuck son of a bitch right now!

Sun, 04/14/2013 - 21:05 | 3447970 The Second Rule
The Second Rule's picture

only way to be sure...

Fri, 04/12/2013 - 22:19 | 3443822 max2205
max2205's picture

Only morons believe anything CNN says....oh wait....

Fri, 04/12/2013 - 20:57 | 3443597 Abi Normal
Abi Normal's picture

I'm about ready to blow!  These freaks of nature running the corps, banks and govt are CRIMINALS!  Ain't crying here any more, I am damn mad...our kids will pay for this, are we gonna let this happen?

 

Get right with God thru Christ Jesus!  Then roll on DC and end this charade once and for all!  Shut the place down so nobody can move, no votes in congress, no money printing, NOTHING!  

STARVE the BEAST!

They're coming for ur guns, ur gold, ur kids, ur preps...take that to the bank people!

I mean my God, they are taxing the RAIN now!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 04/12/2013 - 21:57 | 3443774 FireBrander
FireBrander's picture

"I think a general Government necessary for us, and there is no form of Government but what may be a blessing to the people if well administered, and believe farther that this is likely to be well administered for a course of years, and can only end in Despotism, as other forms have done before it, when the people shall become so corrupted as to need despotic Government, being incapable of any other." Benjamin Franklin

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