This page has been archived and commenting is disabled.
Guest Post: 11 Economic Crashes That Are Happening Right Now
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?
»
- 106148 reads
- Printer-friendly version
- Send to friend
- advertisements -
You can also exchange paper wallets for cash. No internet needed. If people trust paper notes, why they should not trust a paper wallet?
Bitcoins are meant to replace Western Union, Paypal and Visa, not paper cash.
Bitcoins are meant to undermine the "authority" of the global fiat Ponzi scheme.
But if you like the Fed controlled economy, and the manipulated PM markets, they by all means, keep trashing bitcoins. They were created by the Illuminati, right?
You bitcoiners who think that invisable coins are going to bring down the great American empire are delusional.....
Many just don't get BTC yet...
#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...
Sorry, but this argument is complete bullshit. It's clearly a sign that the author doesn't understand what he is talking about.If silver drops more I will be buying another 100oz.
WTF....BUY IT NOW...... AND THEN ANOTHER 100 IF IT GOES TO 23 AND A 1000 IF IT DROPS TO 21 BELOW THERE GOOD LUCK......
You need to buy it consistently--every week or every month--regardless of the price. FORGET THE PRICE. Precious-metal holdings should be measured in OUNCES, not dollars or any other currency. Treat your PM purchases like you would a utility bill: They should be payments that you have to make, month after month after month, forever, just to keep the lights on. THAT'S IT. Once you make silver and gold purchases a habit, something that you do automatically, without thinking, you'll be on your way...
I personally know late comers who cried like babies for gold and silver to tank so they could bet the farm and increase their small holdings at an "affordable" cost. Now they get what they wish for and they are scared little lambs and want to go home and cry to mamma clutching their FRN's. These people are weak morons and there was a reason they waited to get in at a top...(because they are scared cry babies wanting an easy buck and never belonged in the PM game in the first place.) Most talk a big game like if Lady Fortune would just give them a big panic dip they would sell all their dollars for PM's. Then it comes and they run for the hills and scream that life isn't fair. The bankers are laughing their asses off right now. Fuck. I'll freely admit I've been buying down silver since $34. I'm not ashamed. Going to by 100 more oz next week and keep doing it for the foreseeable future. What the fuck else am I supposed to do with my excess FRN's? Put them in the bank? Fuck that shit.
+1.32457392679238572394875239248752 BTC.:-)
"because they are scared cry babies wanting an easy buck and never belonged in the PM game in the first place".
Nicely stated.
Your key word was 'excess'.
People get blinded by the smoke and mirrors the money magicians haul on to the stage. Life's actually simpler than they think.
For what it's worth.
Money is a claim on a real thing. So why not compare your money to real things... Or as close as you can get in a financial market. Compare the price of gold and silver vs oil, wheat, soy, copper, aluminium, electricity, coal, natural gas etc. You know, those real things peopl need to make other real things.
You'll find the prices waver back and forth within a trading range. What they don't do is go exponential the way fiat currencies do. i.e. No bubbles.
Right now, you can get about 16 barrels of WTI oil per ounce[1] of gold. This is pretty much on the average, going back 40 years. Gold's neither high nor low today. Low gold would be 10 or below, high would be 20 or above.
When you start to do this what you find is that it isn't gold or silver or oil which are moving... It's the money which is changing value. The next question which comes to mind is why would I use a measuring stick which is constantly changing size? How on earth can people make sane long term plans in this circumstance? Well you've seen. They can't. They don't.
[1] Please, it's the 21st century we've had metric for decades. Grams anyone?
My plan was never to make silver my get rich bet. That was always a way to preserve value. My get rich play is shorting yen and waiting for the stock market to reach 6000 before I buy back in.
Who cares what others are doing?
It's all bullshit isn't it?
Everything.
I read about people living in caves and tunnels. I know of people who have no money or food.
I've been there, may be there again.
Don't think it can't or won't happen to you.
Survival is food, water and shelter. When money can't get it or gold can't or if you can't get money or gold, what is left?
In this great world we would rather spend a billion on a fighter plane than try and make it a better place. What's up with that?
What good does a degree in economics get? A bullshitter's pass to an income?
I don't know, we have I-phones and androids and I see people walking without shoes.
We live in an insane time. As screwed up as I am, I did not contribute to the insanity, For that I am thankful.
Yes, it is all bullshit. That is why I am buying silver dimes. Now shake it off and keep reading. There is nothing wrong with you. Give those who have no fiat for food some actual food if you feel bad. I do it all the time with my family.
RRRIIIP! Got as far as Bitcoin. After Cyprus, seriously. Srsly?
Noobs, rollers, so many possible explanations, movin tanks made out of bitcoins into position, play a little, lose a lot, you know what that is the standard profile of? A hustler. You don't think hustlers rollin bitcoins? It's too early to tell, Bitcoin is a kickass Meme. Better than Facebook. Kickass Churn. Ding Dong Kim Jong's Dead. There is nothing to do but mix it up on the turntables right now, you don't know WTF because Bitcoin is encrypted, and while a cockroach might make it under the persian rug to the piano player, it sure don't look right when the elephant who's just gone white and doesn't want to interact with the brothers at the party uses the same exit strategy. Here you are, playing that same old sad song. Boy, great insight.
Dime gettin int the way of a dolla. Prediction, Bitcoin is like a vaccum cleaner, when it's turned on, it sucks, when everybody forgets to use it, the shit is piled up so high you're going to need to use it even if the bags cost too much.
You're even fucking stupider than your user name, aren't you?
This out of the box thinking isn't all it's cracked up to be.
f the bankers
Gold was IB-raided into Feb 5th '10 and Nov 21st '11, both times the stock market went up for weeks in a straight line afterwards. I have yet to see a convincing case that "divergence" is anything more than small talk / "anecdotal".
let the goodtimes roll baby...
The last thirty+ years of credit creation have far outstripped the making of real things to collateralize the credit.
And so more and more of our world got monetized. And re-hypothecated 10x.
In 2070-2008 we ran up against the limit of collateralization and monetization.
The problem now is people cashing in their chips, which they have to do to make it, since credit is no longer growing.
And as chips get cashed in, debt instruments have to get matched up to collateral.
Uh-oh. Far too little collateral for the debt out there.
So the Fed has to print money by buying bonds (debt instruments) so that the system doesn't crash due to people not being able to redeem debt instruments for the monetized collateral.
I see no way out of this but for the Central Banks to print enough money to equalize the two sides of the equation. For now, at least, people are willing to accept cash as payment for debts.
But that's just sleight of hand, and ultimately it will be figured out that cash is not the same as collateral. It is only as good as the economy that backs it. And the truth is that none of the global economies are worth as much as the sovereign debts they are running up as they buy off the creditors.
More and more you're going to see people cashing out, and the more that do it, the more asset prices crash. I wouldn't be surprised to see paper gold and silver go to ZERO. Not that anybody will sell it to you at that price.
If Comex handled ammo, the price of .22 LR would be a penny a round right now. What good does that do you? Nobody's selling, and trust me, there's plenty out there in private hands.
At some point peope figure out that cash is a fake store of value. Then watch what asset prices do. Everybody is going to get whipsawed. It's happening with ammo right now. Imagine what the US is going to be like what food and fuel, precious metals and farmland, are impossible to buy, like ammo is now.
Oh they are selling 22, I just witnessed an add in the nickels worth flyer from a private seller, 250 dollars for 500 rounds.. I shit you not.
Need to start worring when oil prices start to drop like a rock, leading indicator of economic activity. market at record high everyone saying buy buy buy... might be a good time to short short short....
"Another beautiful day in the corps! A day in the corps is like a day on the farm: every meal a banquet, every paycheck a fortune, every formation a parade!"
The story on Spanish bankruptcies makes me wonder if there is a tipping point where the next bankruptcy triggers more , because the suppliers all have to mark down their receivables as noncollectable, destroying their balance sheets.
To be honest, wouldn't necessarilly call gold, silver, oil, or bitcoin a crash. All are still above the price they were two years ago and miles above the price they were five years ago. Long term this is a minor pullback... we all know this, why include in this list? Worldwide QE is at all time hights, the notion that bitcoin has crashed because it is lower than a few days ago BUT STILL HIGHER THAN IT WAS A FEW WEEKS AGO is silly, alternative currencies are here to stay. Obviously gold, silver and oil are alive and well as well when looking on longer term charts..... I know this article focusses on relatively "short term crashes", but im concerned with the long term and fundamentals. QEinfinity is in effect, interest rates aren't changing, the fed isn't taking away the punchbowl anytime soon, and even if they were.... im sure they would give fair warning far in advance. After all, "Transparency" is one of Bernanke's ultimate goals/legacies as FED chairman (whether or not he has achieved it thus far).
#4 Oil 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.
I thought Oil rose from $60bl in early 2007 to a peak of £147bl in July 2008. Then plummeted back to $60bl in October in the aftermath of the crisis. Not before the crash thus acting as an indicator.
Or does he mean the rising oil price that happened before the crash (2002-2008) acted as a catalyst?
TPTB desperate to keep Gold and Silver under control lest USD slip into irrelevance and thus interest rates rise.
They know Gold and Silver represent a mortal danger to the USD if left to run...where it would be way over $2k by now...it might bring disaster.
But they are fighting a losing battle whilst the economies are tanking and they need to keep printing as before to fund staying alive..countries moving to direct currency tranding.
Reckon they are wasting their time as anybody with half a brain knows gold and silver is a must diversion to the USD and countries and the wealthy will be stacking it whilst it is being repressed.
Another nightmare is if other countries stop hyper printing leaving the USD exposed as the sickest kid on the block. The US has to keep printing...and needs the rest to do the same....
Gotta think the only way to slam on the breaks if inflation chaos breaks loose is to declare a gold backed currency.
Well it's not an 'Economic Crash' but it's a down side.
http://www.telegraph.co.uk/finance/financial-crime/9991842/Russia-bans-A...
So how long can these countries be engaged and competitive currency debasement equilibrium before equilibrium is lost....
I just checked quickbooks and my gasoline expense is $934. for the first 3 months of 2013. Last years first 3 months for 2012 was $1890. My wife and I have made great strides to cut down driving and replace a pickup truck with a 30+ mpg vehicle. How many others are making the same changes. That's a big drop percentage wise.
Honda PCX 150 scooter, 90 mpg, freeway legal in most states, @ roughly $3400 will pay for itself rather quickly if gasoline gets up to $5 / gal
$3,400 is quite expensive for a scooter.
Watch out for the service intervals on those wee things, typically around 2,000 miles. They're designed for around town not so much high milages and the small engines wear out fairly quickly. Also... Motorway speeds they're terrifying.
Recommend you watch what the pizza delivery guys and city couriers ride. They've done the fuel/milage/maintenance/depreciation calculation for you.
I used to put 10 or 12K on my pickup per year. Last year the total was 3,300 mi. High price gas means I do not put money into the economy every time I go down the drive way as I usually did. I'm not going to pay those prices for fuel and spend money too. I don't go out for one thing and buy three more impulse items and a sammich anymore. Get someone else to, "grow the economy".
Not a doom and gloomer… but median don’t mean median any fucking more. The piper knows this. The sheeple don’t. So be it. 35/1 ratios still very much exist. Funny part is, it will be easy to say… you (government/banks/companies etc…) can do it, so can I. Heck isn’t that what freedom means, free to do as big bother does? Love this country, but want so desperately for the sheeple to wake the fuck up, and call a spade a spade. Revert back to milk and bread… and build this country back up again. Build to mean, work with and for each other. Global interests are just that, without a beacon of truth… the next “wars” (blunders) will be so very hard to justify. Only in the name of defense is a quagmire, when the word defense means nothing. My Saturday morning contribution. Off to the range.
One thing I know for sure is that throughout my 59 years of life, Western Bankers and financial "experts" have only been concerned with short term losses and gains. Therefore if you are thinking long term you are way ahead of them but you must stiil consider the Asians. They tend to think more long term.
You know what's interesting?
And I post this with regard to recent news items covering all sorts of stories about declining economy, gov's coming to get yr money out of yr accounts, etc. Today, saturday, I read in Belgian trends magazine that the sale of VAULTS in Belgium have TRIPPLED. Also more expensive vaults are being sold, what indicates that people are storing rather "interesing amounts of money" in these vaults. Not just 5.000€. More like 100.001€. What I'm trying to say here is "people all over the world woke up and I'm sure - for now minor - bank runs are happening as we speak". What do policy makers think? That people really will just take the risk, and leaving these 100.001€ in their accounts? Also Cyprus was the catalyst, and things that are happening now, is just the beginning of who knows what. GRTZ
Guns and ammunition sales are not crashing.
As long as central banks are printing money to prop up the stock markets I can't see them falling.
There must come a time when the banks/central banks own so much of the stocks there is no market. How much more money can the central banks print before there is world inflation? We will soon have the tsunami of Yen hitting our shores.
Still there is one particular market, central banks cant control - the job market. And this market will end all other markets and no one can do anything to avoid it.
http://www.theatlantic.com/business/archive/2013/04/bitcoin-is-no-longer...
Interesting that the same discussion is not applied to gold with the question posed: Why isn't gold going vertical?
It's that time to give "Earth" a break.
Finally starting to get the hang of this money thing. I've foung this HUGE cowry midden. I'm rich!
A man bringing his money from point A to point B on a plane. The horror. What an unbelievable crime.
While markets went global quite a while ago, nations still exist and still they want to control their "own" economics...
... doesnt compute ...
Nowhere do I find any mention, or predictions, that food prices will decline. In fact, it's just the opposite. Food prices are predicted to rise by as much as 30-40% this year.
Correct
I still need to plant my TP trees , and requisition 2 billion rounds of JHP ammo, but then I'm good.
Anyone with a bit of sense, and a average knowledge of world history (even without any incumberance of economic knowledge) just should look at the physical/"moral" deterioration and over extension of the US Empire combined with expanding unfunded debt and liabilities ( www.usdebtclock.org ) to figure out if precious metals have crashed. Because if anything has changed or been manipulated by global banking or the Turd in the Whitehouse or the shit-stains in Congress it has been for the worse. None of them can see past the range of the can being kicked down the road to hell.
Typed on my iPad while taking a crap...
This is a real crash: Bali plan crash!
crash in Bali after a Lion Air Boeing 737 missed the runway and ditched in shallow water
Good to know that planes can swim
video:
http://homment.com/bali-Lion-crash
12. Pacific Food Chain Collapse (initial stages now ~ Fukushima), which will lead to other collapses
12a. starving sea lion pups in southern california
12b people taking radiation detectors into supermarkets and starting a panic in the tuna fish sections
"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."
2008 was the Great Recession. 11 crashes happening right now, indicates that it is not bankers that are pushing the price down, but weakening global conditions.
China: 49 bird flu infection cases, 11 dead
http://www3.nhk.or.jp/nhkworld/english/news/index.html
The stock market is "based on fundamentals???" Since when? The value of the stock market is based on the amout of money that the people with money are willing to put into it. Period. As long as stocks are going up faster than any other money based "asset," people with money will park it there. When that changes, and the money leaves to go into some other parking place, stock values will drop. It is a casino for the oligarchy, in which it is also the "house," and lets little people (bagholders/muppets) play along until they take the money with a push of the button, to another "asset class."
Watch out for food, water ("commodities") and shelter ("real estate") becoming the next "bubbles."
tulving is offline, gainesville upped the premium on 90% to 4.99/oz
Last weekend they upped the premium to 2.89 or so, big increase from previous. monster box of eagles now have a premium of 3.35
DISCONNECT
Crash in Guantanamo
American guards have clashed with prisoners held in Guantanamo Bay prison in Cuba amid a hunger strike at the military prison.
http://homment.com/clash-Guantanamo
#11. The Masters
#12. Cheetah Woods
#13. Kike Golf
I just want to get it over with and move on...
That Hope and Change thing is REALLY working out well...
if you happen to belong to the muslim brotherhood or a corrupt bank!!
The Gox's have their tech out looking for a dual pentium to upgrade but in the meantime:
Trade engine cooldown (lag too high), order placing suspended until 2013-04-13 20:40:00 UTC
You got to give Putin credit. He isn't scared of George W or Obama's Orwellian and Dictatorship policies.
http://www.telegraph.co.uk/finance/financial-crime/9991842/Russia-bans-Americans-in-retaliation-over-Magnitsky-Act.html
He calls a spade a spade and the whole world is not enamored with Gitmo and that place is an affront to the Constituion.
America is going where Germany was in the thirties. They speak of moral hazard, but the administration has no morals so what difference does it make. Sounds like psycho to me.
It's gone from bad to worse over there on the mountain. Apparently Mr. Gox has been hitting the bottle on the sly and tripped over the T1 connection. Site can't be accessed but his wife's screaming can be heard all the way to Pyongyang
I´m proud owner of Jewellery shop and I have to admit that our clients have changed their buying behavior. In the first place, we had less sales last year than ever before. But guess what - our taxes and expenses increased. We are still staying above the water, but with the current trend of market imbalance and with increasing economical problems, I do not see us surviving much longer.
we few , we happy few, we band of silver holders . . .
Watching the Long Wave win: PRICELESS!!!