This page has been archived and commenting is disabled.

For The "Nothing Is Happening... Everything Is Awesome" Crowd

Tyler Durden's picture




 

Submitted by Michael Snyder via The Economic Collapse blog,

A lot of people out there expected something to happen in September that did not ultimately happen.  There were all kinds of wild theories floating around, and many of them had no basis in reality whatsoever.  But without a doubt, some very important things did happen in September. 

As I warned about ahead of time, we are witnessing the most significant global financial meltdown since the end of 2008.  All of the largest stock markets in the world are crashing simultaneously, and so far the amount of wealth that has been wiped out worldwide is in excess of 5 trillion dollars

In addition to stocks, junk bonds are also crashing, and Bank of America says that it is a “slow moving trainwreck that seems to be accelerating“.  Thanks to the commodity price crash, many of the largest commodity traders on the planet are now imploding.  I wrote about the death spiral that has gripped Glencore yesterday.  On Tuesday, the stock price of the largest commodity trader in Asia, the Noble Group, plummeted like a rock and commodity trading giant Trafigura appears to be in worse shape than either Glencore or the Noble Group.  The total collapse of any of them could easily be a bigger event than the implosion of Lehman Brothers in 2008.  So I honestly do not understand the “nothing is happening” crowd.  It takes ignorance on an almost unbelievable level to try to claim that “nothing is happening” in the financial world right now.

Within the last 60 days, we have seen some things happen that we have never seen before.

For example, did you know that we witnessed the greatest intraday stock market crash in U.S. history on August 24th?

During that day, the Dow Jones Industrial Average plunged from a high of 16,459.75 to a low of 15,370.33 before rebounding substantially. That intraday point swing of 1,089 points was the largest in all of U.S. history.

Overall, the Dow has down 588.40 points that day.  When you combine that decline with the 530.94 point plunge from the previous Friday, you get a total drop of 1119.34 points over two consecutive trading days.  Never before in history had the Dow fallen by more than 500 points on two trading days in a row.  If that entire decline had fallen within one trading day, it would have been the largest stock market crash in U.S. history by a very wide margin, and everyone would be running around saying that author Jonathan Cahn was right again.

But because this massive decline fell over two consecutive trading days that somehow makes him wrong?

Are you kidding me?

Come on people – let’s use some common sense here.  We are already witnessing the greatest global stock market decline in seven years, and after a brief lull things are starting to accelerate once again.  Last night, stocks in Hong Kong were down 629 points and stocks in Japan were down 714 points.  In the U.S., the Nasdaq has had a string of down days recently, and the “death cross” that has just formed has many investors extremely concerned

The Nasdaq composite spooked investors on Monday after forming a death cross, a trading pattern that shows a decline in short-term momentum and is often a precursor to future losses.

 

A death cross occurs when the short-term moving average of a security or an index pierces below the long-term trend, in this case the 50-day moving average breaking through the 200-day moving average.

 

In the past month, similar chart patterns formed in the S&P 500, Dow and small-cap Russell 2000, but the Nasdaq avoided a death cross formation until Monday.

What we witnessed in September was not “the end” of anything.

Instead, it is just the beginning.

And if you listen carefully, some of the biggest names on Wall Street are issuing some very ominous warnings about what is coming.  For instance, just consider what Carl Icahn is saying

Danger ahead—that’s the warning from Carl Icahn in a video coming Tuesday.

 

The activist says low rates caused bubbles in art, real estate and high-yield bonds—with potentially dramatic consequences.

 

“It’s like giving somebody medicine and this medicine is being given and given and given and we don’t know what’s going to happen – you don’t know how bad it’s going to be. We do know when we did it a few years ago it caused a catastrophe, it caused ’08. Where do you draw the line?”

Even people like Jim Cramer are starting to freak out.  He recently told his audience that “we have a first-class bear market going”

Jim Cramer, the ex-hedge fund manager and host of CNBC’s show “Mad Money,” has been vocal recently on air, saying repeatedly that he doesn’t like the market now, and last week said “we have a first-class bear market going.” Similarly, Gary Kaltbaum, president of Kaltbaum Capital Management, has been sending out notes to clients and this newspaper for weeks, saying the poor price action of the stock market and many hard-hit sectors, such as energy and the recently clobbered biotech sector, has all the earmarks of a bear market. Over the weekend, Kaltbaum said: “We remain in a worldwide bear market for stocks.”

As I have warned repeatedly, there will continue to be ups and downs.  The stock market is not going to fall every day.  In fact, on some days stocks will absolutely soar.

But without a doubt, we have entered the period of time that I have warned about for so long.  The global financial system is now beginning to unravel, and any piece of major bad news will likely accelerate things.

For instance, the total collapse of Deutsche Bank, Petrobras, Glencore, the Noble Group, Trafigura or any of a number of other major financial institutions that I am currently watching could create mass panic on the global financial stage.

In addition, an unexpected natural disaster that hits a financially important major city or a massive terror attack in the western world are other examples of things that could accelerate this process.

Our world is becoming increasingly unstable, and we all need to learn to expect the unexpected.

The period of relative peace and security that we all have been enjoying for so long is ending, and now chaos is going to reign for a time.

So get prepared while you still can, because there is very little time remaining to do so…

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 09/30/2015 - 08:48 | 6610252 Perimetr
Perimetr's picture

no worries, just  deposit a few trillion more dollars into the central banks every month

Wed, 09/30/2015 - 08:49 | 6610259 VinceFostersGhost
VinceFostersGhost's picture

 

 

Printing some money over here boss.

Wed, 09/30/2015 - 09:06 | 6610328 Fukushima Fricassee
Fukushima Fricassee's picture

Keep shaking the string Luke.

Wed, 09/30/2015 - 09:12 | 6610284 Dr. Engali
Dr. Engali's picture

"A lot of people out there expected something to happen in September that did not ultimately happen.  There were all kinds of wild theories floating around, and many of them had no basis in reality whatsoever"

 

 

I believe you were one of those people Michael..., one of the worst.

Wed, 09/30/2015 - 11:25 | 6611237 coinhead
coinhead's picture

No Michael is right and anyone here should see why that is.  It's like trying to explain any of these going-ons to the sheep and then they come back 5 days later saying, "look!  look!  Nothing happened!  You were wrong!"  Seemingly not understanding that Rome did not fall overnight and this thing won't either.

Wed, 09/30/2015 - 08:49 | 6610257 Bryan
Bryan's picture

*Yawn*

Wed, 09/30/2015 - 09:32 | 6610471 Slomotrainwreck
Slomotrainwreck's picture

“slow moving trainwreck that seems to be accelerating“

 

'nuff said ...

Wed, 09/30/2015 - 08:51 | 6610266 wildbad
wildbad's picture

"a lot of people" were YOU Mr. Snyder.  Remember the big "Red Alert" button?

Wed, 09/30/2015 - 08:53 | 6610275 JustObserving
JustObserving's picture

The Fed is buying stocks.  BTFD.  

The wealth effect from stocks is preventing the US economy from falling apart.

Wed, 09/30/2015 - 08:53 | 6610278 MFL8240
MFL8240's picture

Our world is becoming increasingly unstable, and we all need to learn to expect the unexpected.

 

All by design!

Wed, 09/30/2015 - 09:14 | 6610373 USisCorrupt
USisCorrupt's picture

BINGO ! 

 

Give that man a Cigar !

Wed, 09/30/2015 - 09:26 | 6610433 60B3
60B3's picture

100% accurate... They know exactly what they are doing well in advance. And be sure they have this shorted to the moon to gain on the way down.

Wed, 09/30/2015 - 08:54 | 6610280 Dr. Engali
Dr. Engali's picture

If Jim Cramer says we are in a Bear Market we must be because when it come to Bear, he knows what he is talking about.

 

https://youtu.be/V9EbPxTm5_s

 

 

 

Bear Stearns is fine, don't be silly......

Wed, 09/30/2015 - 09:07 | 6610333 Mick Shrimpton
Mick Shrimpton's picture

So get prepared while you still can, because there is very little time remaining to do so…

 

Get prepared how exactly?  I've been completely out of equities since mid-May, have plenty of guns and ammo, live in a rural area, and have plenty of silver.

 

Wed, 09/30/2015 - 09:23 | 6610416 Doubleguns
Doubleguns's picture

Food and Water should have been first on the list. 

Wed, 09/30/2015 - 09:49 | 6610553 wizteknet
wizteknet's picture

bittorrent or torrent client, keywords survival, bushcraft, prepper, self defense, is a good start read up!

Wed, 09/30/2015 - 10:35 | 6610888 Be_Optimistic
Be_Optimistic's picture

Cannot eat silver. 

Wed, 09/30/2015 - 09:24 | 6610423 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Peace & security for the one per cent whilst the ninety nine per cent have none, eh. Frankly, Armageddon will bring peace & security when we collectively hang the motherfucking one per cent from the nearest streetlamps, and tree limbs, or feed them to dogs as a snack.

 

You want peace & security? I'll give you some God damned peace & security, Snyder.

 

Hmmmmmm?

 

I think the DOW deserves another kick in the nuts this week!

Wed, 09/30/2015 - 09:25 | 6610425 Collapsed_Elast...
Collapsed_Elastic_Pants's picture

But.....Apple's making a car.

Wed, 09/30/2015 - 10:25 | 6610804 CHX
CHX's picture

I eat apple and do not drive one.

Wed, 09/30/2015 - 09:35 | 6610486 MrSteve
MrSteve's picture

Deflation is a process of corrections in finance, so failing businesses, personal BKs, dropping prices, etc, etc, are all to be expected. No real point in getting excited over the inevitable......

Wed, 09/30/2015 - 09:48 | 6610563 CHX
CHX's picture

Nothing to see here, move along. Our money masters got it all covered. Just buy stocks and bonds and you will be ok. And an overpriced house on credit. What could possibly go wrong ?

Wed, 09/30/2015 - 09:51 | 6610580 Lmo Mutton
Lmo Mutton's picture

It is time to wake up.  September is over.

Wed, 09/30/2015 - 09:54 | 6610589 SMC
SMC's picture

No investors in these alleged markets... only cronies and gamblers.

Wed, 09/30/2015 - 10:02 | 6610641 CHoward
CHoward's picture

We're on the final day of September.  Tomorrow begins October - notoriously the worst month for Wall Street.  I'll just sit back and see how this whole thing plays out. 

Wed, 09/30/2015 - 10:09 | 6610650 yogibear
yogibear's picture

And Mark Zandi is the cheerleader for being complacent. What a usele

Wed, 09/30/2015 - 10:15 | 6610730 novelator
novelator's picture

Personally, I think the central banks around the world are trying to let the air out of the bubbles they've created, especially the Fed.

 

They're trying to control the decline, so it doesn't look like a crash and scare off their marks.

 

They probably want to know if they can do it.

 

Guess we'll all find out soon enough. I'm betting it all gets away from them.

Wed, 09/30/2015 - 10:24 | 6610789 MDP
MDP's picture

DOW 20,000

Wed, 09/30/2015 - 10:47 | 6610981 vq1
vq1's picture

who cares!

US Private Sector Adds 200K Jobs

woohoo jobs everywhere! full time, benefits and great pay. Cmon everybody! 

This is the dawning of the Age of Aquarius

Let the sunshine, let the sun shine in


Wed, 09/30/2015 - 10:51 | 6611009 rejected
rejected's picture

The bankers will buy everything of value with their worthless money,,, impoverish anyone not in the club,,, sit back and laugh at how we actually helped them do it.

The only way to win this game is to not play.

Gonna be hard to do but it's going to have to be done. Do not go into debt,,, pay off existing debt,,, use digital payments little as possible,,, use cash as much as possible,,, try to get your state to open the gold/silver window.

Do NOT follow this link or you will be banned from the site!