The Stock Markets Of The 10 Largest Global Economies Are All Crashing

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

You would think that the simultaneous crashing of all of the largest stock markets around the world would be very big news.  But so far the mainstream media in the United States is treating it like it isn’t really a big deal.

Over the last sixty days, we have witnessed the most significant global stock market decline since the fall of 2008, and yet most people still seem to think that this is just a temporary “bump in the road” and that the bull market will soon resume.  Hopefully they are right.

When the Dow Jones Industrial Average plummeted 777 points on September 29th, 2008 everyone freaked out and rightly so.  But a stock market crash doesn’t have to be limited to a single day.  Since the peak of the market earlier this year, the Dow is down almost three times as much as that 777 point crash back in 2008.  Over the last sixty days, we have seen the 8th largest single day stock market crash in U.S. history on a point basis and the 10th largest single day stock market crash in U.S. history on a point basis.  You would think that this would be enough to wake people up, but most Americans still don’t seem very alarmed.  And of course what has happened to U.S. stocks so far is quite mild compared to what has been going on in the rest of the world.

Right now, stock market wealth is being wiped out all over the planet, and none of the largest global economies have been exempt from this.  The following is a summary of what we have seen in recent days…

#1 The United States – The Dow Jones Industrial Average is down more than 2000 points since the peak of the market.  Last month we saw stocks decline by more than 500 points on consecutive trading days for the first time ever, and there has not been this much turmoil in U.S. markets since the fall of 2008.

 

#2 China – The Shanghai Composite Index has plummeted nearly 40 percent since hitting a peak earlier this year.  The Chinese economy is steadily slowing down, and we just learned that China’s manufacturing index has hit a 78 month low.

 

#3 Japan – The Nikkei has experienced extremely violent moves recently, and it is now down more than 3000 points from the peak that was hit earlier in 2015.  The Japanese economy and the Japanese financial system are both basket cases at this point, and it isn’t going to take much to push Japan into a full-blown financial collapse.

 

#4 Germany – Almost one-fourth of the value of German stocks has already been wiped out, and this crash threatens to get much worse.  The Volkswagen emissions scandal is making headlines all over the globe, and don’t forget to watch for massive trouble at Germany’s biggest bank.

 

#5 The United Kingdom – British stocks are down about 16 percent from the peak of the market, and the UK economy is definitely on shaky ground.

 

#6 France – French stocks have declined nearly 18 percent, and it has become exceedingly apparent that France is on the exact same path that Greece has already gone down.

 

#7 Brazil – Brazil is the epicenter of the South American financial crisis of 2015.  Stocks in Brazil have plunged more than 12,000 points since the peak, and the nation has already officially entered a new recession.

 

#8 Italy – Watch Italy.  Italian stocks are already down 15 percent, and look for the Italian economy to make very big headlines in the months ahead.

 

#9 India – Stocks in India have now dropped close to 4000 points, and analysts are deeply concerned about this major exporting nation as global trade continues to contract.

 

#10 Russia – Even though the price of oil has crashed, Russia is actually doing better than almost everyone else on this list.  Russian stocks have fallen by about 10 percent so far, and if the price of oil stays this low the Russian financial system will continue to suffer.

Just in the last 2 months...it's uglier than it has been in 7 years

What we are witnessing now is the continuation of a cycle of financial downturns that has happened every seven years.  The following is a summary of how this cycle has played out over the past 50 years

  • It started in 1966 with a 20 percent stock market crash.
  • Seven years later, the market lost another 45 percent (1973-74).
  • Seven years later was the beginning of the “hard recession” (1980).
  • Seven years later was the Black Monday crash of 1987.
  • Seven years later was the bond market crash of 1994.
  • Seven years later was 9/11 and the 2001 tech bubble collapse.
  • Seven years later was the 2008 global financial collapse.
  • 2015: What’s next?

A lot of people were expecting something “big” to happen on September 14th and were disappointed when nothing happened.

But the truth is that it has never been about looking at any one particular day.  Over the past sixty days we have seen absolutely extraordinary things happen all over the planet, and yet some people are not even paying attention because they did not meet their preconceived notions of how events should play out.

And this is just the beginning.  We haven’t even gotten to the great derivatives crisis that is coming yet.  All of these things are going to take time to fully unfold.

A lot of people that write about “economic collapse” talk about it like it will be some type of “event” that will happen on a day or a week and then we will recover.

Well, that is not what it is going to be like.

You need to be ready to endure a very, very long crisis.  The suffering that is coming to this nation is beyond what most of us could even imagine.

Even now we are seeing early signs of it.  For instance, the mayor of Los Angeles says that the growth of homelessness in his city has gotten so bad that it is now “an emergency”

On Tuesday, Los Angeles officials announced the city’s homelessness problem has become an emergency, and proposed allotting $100 million to help shelter the city’s massive and growing indigent population.

 

LA Mayor Eric Garcetti also issued a directive on Monday evening for the city to free up $13 million to help house the estimated 26,000 people who are living on the city’s streets.

 

According to the Los Angeles Homeless Services Authority, the number of encampments and people living in vehicles has increased by 85% over the last two years alone.

And in recent years we have seen poverty absolutely explode all over the nation.  The “bread lines” of the Great Depression have been replaced with EBT cards, and there is a possibility that a government shutdown in October could “suspend or delay food stamp payments”

A government shutdown Oct. 1 could immediately suspend or delay food stamp payments to some of the 46 million Americans who receive the food aid.

 

The Agriculture Department said Tuesday that it will stop providing benefits at the beginning of October if Congress does not pass legislation to keep government agencies open.

 

“If Congress does not act to avert a lapse in appropriations, then USDA will not have the funding necessary for SNAP benefits in October and will be forced to stop providing benefits within the first several days of October,” said Catherine Cochran, a spokeswoman for USDA. “Once that occurs, families won’t be able to use these benefits at grocery stores to buy the food their families need.”

In the U.S. alone, there are tens of millions of people that could not survive without the help of the federal government, and more people are falling out of the middle class every single day.

Our economy is already falling apart all around us, and now another great financial crisis has begun.

When will the “nothing is happening” crowd finally wake up?

Hopefully it will be before they are sitting out on the street begging for spare change to feed their family.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
VinceFostersGhost's picture

 

 

I don't think the heavy stuff is going to come down for quite a while.

https://www.youtube.com/watch?v=t3lshY4PwI4

TeamDepends's picture

Have you stopped night putting?

Oh regional Indian's picture

In India, a lot of people without a "good" english education pronounce it "StUck Market". I think they have been on to something for a long time.

Meanwhile, it's much better to embrace change than have change embrace you...subtle difference, but major. Forced change tramples, change you embrace is ridden, like a hoss. Speaking of hosses and change...

Change you CAN believe in...following on...

https://www.youtube.com/watch?v=wLWbiGxYq10

NoDebt's picture

That's because we're in Great Depression 2.0

It's a lot like the last one except without the huge fall in asset prices.  That's the part of the first Great Depression that really fucked up the elites.  They vowed not to let it happen again.  Poverty, homelessness, unemployment... all still happening, just smoothed over by better data manipulation and the fact you don't physically have to stand in a soup line any more to be in the soup line.

It's the INVISIBILITY of it all that's different this time.  Or, perhaps an unwillingness to look too closely.

hedgeless_horseman's picture

 

 

the fact you don't physically have to stand in a soup line any more to be in the soup line.

Out of sight out of mind...

Try to imagine:

1.75 = feet per person in line
47,000,000 = people on SNAP
82,250,000 = feet of breadline
15,577 = miles of soup line...EVERY day.

http://www.zerohedge.com/contributed/visualizing-large-numbers-and-your-...

madcows's picture

And, that doesn't even include all the kids that get free/reduced price breakfast, lunch and dinner at our schools, EVERY DAY!

hedgeless_horseman's picture

 

 

In the U.S. alone, there are tens of millions of people that could not survive without the help of the federal government,

Conversely, the federal government in the U.S. could not survive without the votes of tens of millions of people that BELIEVE they could not survive without the help of the federal government.

What ever happened to the Tenth Amendment of The Constitution of the United Staetes of America?

The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

Motasaurus's picture

People don't care about the stock market because 

#1 - no one but the uber rich are in it.
and
#2 - the markets haven't reflected reality on the ground for almost a decade. 

The world has been in a jobs drought for at least five years, the biggest markets for longer. The U.S. middle class never recovered from 2001 and have been in a steadily deepening depression ever since.

So no. What happens to the stocks don't mean anything to anyone.  

MrSteve's picture

Those many anyones will care a great deal when the the credit markets seize up and pull the rug out from under their feet. Few are ready to overcome hard times as it is their spirit that is impoverished now.

CheapBastard's picture
Hyundai recalls 470,000 Sonatas to replace engines

 

http://finance.yahoo.com/news/hyundai-recalls-470-000-sonatas-fix-big-en...

 

It's only the engine...don't be such a cry baby. It's all very Bullish! A nice boost to their GDP.

quadratic_equation's picture

Nope, if you work and have 401K or company pension plan including government pension plans; you are in the stock market.  That my friend includes everyone working or taxpayers.  If you think you don't have any of those and relying on social security, when the stock crashes, equities (banks) will crash and government will not have any money to give out.  The Fed will print more digital money but all it does is dilute the value of money until it's worthless.

Motasaurus's picture

I have assumed since I started working that my 401K equivalent (I am not in the U.S.) doesn't exist, because I recognise demographics and that it won't exist when I'm legally allowed to access it.

GoinFawr's picture

"Load up your guns, bring your friends; it's fun to lose and to pretend. She's over-bored and self assured. Oh no, I know a dirty word. With the lights out, it's less dangerous. Here we are now entertain us. I feel stupid, and contagious. Here we are now, entertain us. A mulatto, an albino, a mosquito, my libido." KC

toady's picture

BTFD? I  only ask because it does feel different this time. ...

weburke's picture

oil to the (bloody) moon. 

place your bets

Argenta's picture

A very interesting and most depressing way to look at that.  Wow.

-Argenta

hedgeless_horseman's picture

 

 

How many days could you make your own soup, in a pinch?

  • Fuel
  • Pot (not the dope kind)
  • Fresh water
  • Protein
  • Starch
  • Vegetables
  • Herbs
  • Spices
ThanksChump's picture

For how many people?

 

Soup? Six people? Only about 80 days. After that, we'd be sick of soup so we'd be forced to subsist on canned vegetables, fruits, nuts, and meats until about midsummer.

gaoptimize's picture

6 months.  Solo stove.  Hand pumped well.  Flavored hard red wheat gruel.  Most days, it will be done at night in small batches to avoid attracting attention to smoke and smell.  We will go to half calories on days/months we are not required to work in the garden or otherwise extert ourselves (more for the wife on wash day once a month, for example. Half the catch to the fish catcher etc.).  This is the easy part.  For the other part, we are working on our skills and mind set.

RobD's picture

Soup would be a treat, most days would be rice and beans with a little canned meat to make up for the amino acids not found in the beans. For special occasions would be fried spam on home made wheat bread or tortillas. Corn bread made from popcorn for a change every now and then. Wild game if available but not counting on it. Can go a year like that or longer if all my tribe does not make it to our retreat.

quadratic_equation's picture

Canned meat with rice is actually good from time to time being of asian origin so I guess I can live with that.  Not having anything at all or spending all day just to scrape for food for the next day, that's what really sucks.  A co-worker from Cuba told me this when he said he visited relatives in Cuba.

quadratic_equation's picture

Canned meat with rice is actually good from time to time being of asian origin so I guess I can live with that.  Not having anything at all or spending all day just to scrape for food for the next day, that's what really sucks.  A co-worker from Cuba told me this when he said he visited relatives in Cuba.

TheReplacement's picture

Acorns, cattails, lillies, berries, frogs, turtles, fish, birds, tree rats, dandelions, cow parsnip, wild carrot, maple sap... the list goes on and on.  If you know what you are looking for you will find plenty.

Countrybunkererd's picture

side note:  don't cattails have MDMA or something in the green bits or roots?  Just wondering.

There is a lot of food around, if...a big IF you and yours can get past eating things we usually kill to make the home look and feel nice (for others-go figure).  I don't think i can eat a grub worm or whatever it was, again...that is bait, not food!

Argenta's picture

Long enough to outlast 98% of society...

-Argenta

gaoptimize's picture

HH: I think an analogies that is easier for people to imagine is: There are ~240,000 churches in America.  There would be ~200 people lined up for soup at each, 2 or 3 times every day.  You would see them.  When truth be told, there are ~3 employed people feeding each SNAP beneficiary, and that number is declining steadilly.

The saddest part is the life force and energy of these people is not being channeled to build a great future for humanity.  History shows there is a best way to do this: Free market capitalism.   But we have those in power working and speaking against it day by day, growing the lines, lowering expectations about what one can accomplish in life.  Now, even the energy of the productive is being sapped to ward off starvation of the unproductive, and defend/maintain the status quo. The system is grinding to a halt.

Nostradumbass's picture

"1.75 = feet per person in line"

Sorry, but your maths are all wrong here Horseman. Your calculations would be correct for the first great depression when Americans were about 1 foot thick. In today's age of obesity you need to correct to at least 3 feet per blimp. Of course over time, the sizes might come down through hunger but probably not, because the gov't soup lines will be served carbs and gmo. And the hungry will be shuttled in cuz they can't waddle that far.

 


Argenta's picture

Yeah but people aren't joined at the hip, you see.  There is this thing called "personal space".

Nostradumbass's picture

Yes, you must also add another foot or more to the space occupied - I left that out because it seemed obvious...

Drop out's picture

The "Syrian refugees" also need to be taken into account. Some of them could spontaneously explode completely scattering the lines.

Chupacabra-322's picture

It's Great Depression by Stelth & PsyOp.

Trips Trading's picture

I've looked closeley, stock markets need a Higher High as the Bond market will collapse. 

Short term, we need to finish wave IV down, 1890 based on Negative Reversal, 1860, 1830, 1750. 

http://tripstrading.com/2015/09/24/sp500-1h-chart-bullish-divergence/

http://tripstrading.com/2015/09/19/sp500-weekly-chart-2-or-5/

 

buttmint's picture

ORL...great vid on electric scooter---but you will need a hot Indian model babe with her salwhar kamezz blowing in the breeze!

 

NoVa's picture

+100 for Carl reference

 

BullyBearish's picture

Here's the message of the market today:

 

Interest rates will rise, energy prices will rise and this will be REALLY GOOD for the market, so load up on the long side...

 

This is a once-in-a-lifetime opportunity to LOAD UP YOUR SHORTS for the next 2 year run down to SPY 1400 or below...

Klemens's picture

Silver prices are approximately triple what they were a decade ago,

http://deviantinvestor.com/7361/silver-victim-of-motive-means-and-opport...

you only need to change your stocks into physical silver and wait!  That is an easy job.......

MFL8240's picture

That was yesterday.  Today the Federal Reserve said it was going to raise rates by the end of the year and all is good again, here comes the rally!  Seems like the rate raising lie isn’t over the saps continue to buy into it, the clowns on Wall Street have been given the green light to leviate and falsify more fake properity!!

Bopper09's picture

It's always worked for them, why would they change now?  It's the stupidity of the people that believe the bullshit is what needs to be changed.

balanced's picture

I don't think many people believe it. It's not about "investing" based on expectations of future trends. That way of thinking is outdated. Now it's all about trading queues for short-term moves. News is traded. There is no investing anymore.

Countrybunkererd's picture

There is also a group that looks at it like this "where else can i put my money?"  They don't need it to pay bills, they don't want more metals...not sure why...but they don't, they are retired or near it and have a narrow view of the world pounded into them in the 40's, 50's and 60's and can't change it.

I know of one that said "i am keeping my money in the market because i don't want to pay capital gains taxes on it" -before it dropped 2000points.  Good job!  you nearly paid the gains on paper anyway due to your losses. 

autofixer's picture

Didn't they say "likely to raise"?  They left them self an out, of course.  

Dr. Engali's picture

Looks like they're crashing up today.

XqWretch's picture

Sounds like you need to buy the fucking dip!!

madcows's picture

nice, spaceballs pic.

 

"I knew it!  I'm surrounded by Assholes!"

Beowulf55's picture

Damn, I'm beginning to get concerned if I have enough ammunition or not when these starving zombies begin to flow out of the cities.

saints51's picture

then you are not far enough from the city. You still want fries with that.

kotfare17's picture

Any point above Dow 12k is just a digital game, not a market.

 

There is no difference between Dow 16k or 30k or 100k. Hft is simply typing up numbers on computers because they are told to.

The Merovingian's picture

Hoping you meant to say 'any point above Dow 0K is just a digital game, not a market.' Otherwise, spot on.