stock market

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Globe Interconnectedness

By Michael Snyder – 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…

Continue reading at The Economic Collapse Blog: The Stock Markets Of The 10 Largest Global Economies Are All Crashing

New Zealand - Public Domain

By Michael Snyder – The Economic Collapse Blog

Why are the global elite buying extremely remote compounds that come with their own private airstrips in the middle of nowhere on the other side of the planet?  And why did they start dumping stocks like crazy earlier this year?  Do they know something that the rest of us don’t?  The things that I am about to share with you are quite alarming.  It appears that the global elite have a really good idea of what is coming, and they have already taken substantial steps to prepare for it.  Sadly, most of the general population is absolutely clueless about the financial collapse that is about to take place, and thus most of them will be completely blindsided by it.

As I discussed the other day, the only way that you make money in the stock market is if you get out in time.  The elite understand this very well, and that is why they have been dumping stocks for months.  This is something that has even been reported in the mainstream news.  For example, this comes from a CNBC article that was published on June 16th

The so-called smart money is pulling back from market risk, with fund managers taking down exposure to stocks, increasing cash holdings and buying protection against a sharp selloff.

About two weeks before that, I discussed the same phenomenon on my website.  The article that I published on May 30th was entitled “Why Is The Smart Money Suddenly Getting Out Of Stocks And Real Estate?

Did the “smart money” know what was about to happen?  Since the peak of the market, the Dow has already lost more than 2200 points.  All of the gains since the end of the 2013 calendar year have already been completely wiped out.

Continue reading at The Economic Collapse Blog: The Elite Have Prepared For The Coming Collapse – Have You?

About the author:

Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.

Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream

Read his new book The Beginning of the End

Tsunami Tidal Wave - Public Domain

By Michael Snyder – The Economic Collapse Blog

This is exactly the type of market behavior that we would expect to see during the early stages of a major financial crisis.  In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different.  As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy.  During a market meltdown, we fully expect to see days when the stock market absolutely soars.  Waves of panic selling are often followed by waves of panic buying.  As you will see below, six of the ten best single day gains for the Dow Jones Industrial Average happened during the financial crisis of 2008 and 2009.  So don’t be fooled for a moment by a very positive day for stocks like we are seeing on Tuesday.  It is all part of the dance.

At one point on Tuesday, the Dow was up over 400 points, and many of the talking heads on television were proclaiming that the stock market had “recovered”.  This is something that I predicted would happen yesterday

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

No, everything is not “fine” now.  The extreme volatility that we are witnessing just tells us that more trouble is coming.  Early on Tuesday the market was “burning up energy” as short-term investors sought to “buy the dip”.  But now that wave of panic buying is subsiding and the Dow is only up 240 points as I write this.

Overall, the Dow is still down more than 2,200 points from the peak of the market.  Even though I specifically warned that a market crash was coming, I didn’t expect the Dow to be down this far in late August.  Even after the “rally” we witnessed today, we are still way ahead of schedule.

The truth is that what we have seen so far is just the warm up act.

The main event will unfold during the months of September through December, and right now most people could not even conceive of the things that we are going to see in 2016.

Continue reading at The Economic Collapse Blog: During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum

About the author:

Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.

Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream

Read his new book The Beginning of the End

Worried about economic collapse?

By Pat Henry – The Prepper Journal

After the stock market opened up this week on “Black Monday” and quickly dropped 1000 points, many people were surprised. The internet was abuzz with stories discussing the various reasons for the market turmoil and more than one educated source said these wild fluctuations are “perfectly normal”. Economists sounded a more positive note and talked about how it was a “buying opportunity”. I read another headline that was telling everyone to “take a deep breath and do nothing”. The advice implicit in all of these examples is that we sheep need not worry because everything is going to be fine. The financial experts on TV know what they are talking about and we would be foolish to do anything contrary to their advice.

I would agree with some of their advice. If you have the knowledge and resources, yesterday may have been a buying opportunity. If you have trillions of dollars of money that was created out of thin air, entrusted to you to invest, maybe there isn’t anything to worry about, at least in terms of the stock market volatility. I don’t recommend anyone panic and jump out of any buildings now. Markets do go up and down, but the long-term average is always up, right? Maybe there isn’t anything to worry about and yesterday certainly turned out to not be the global collapse feared by many.

On the other hand, I don’t think you should sit back and do nothing. Personally, I think we are in for a scary ride and yesterday was just the most ominous first signal. It was the beginning of a roller coaster ride that will eventually end up crashing into the parking lot coming out of the 4th loop. Yesterday was like the initial jolt you feel as the coaster shudders before the run up the hill. We still have some ride left, but I don’t think it will end well.

How can you prepare for economic collapse?

What can preppers do in the face of an economy that according to many experts (I certainly am not one) is dangerously close to collapse? There isn’t anything we can do to affect the markets. You won’t be able to shore up the economies of any other country around the world much less our own. However, the global economy will impact everything so even if you are like me and do not have any money in the markets you will be affected if they tank.

Your 401K might be perfectly fine in a year or it could lose all of its value completely. Yes, there are traders who are able to short the right commodities and make a fortune even in this financial climate. This article isn’t for them.

There are steps you can take to reduce your risk of exposure though if the financial markets take do end up taking a dive. You can begin to protect yourself so wild market fluctuations, maybe even crashes will impact you less in the short run. You wouldn’t only have one survival knife or way of making fire in your bug out bag, would you? You have backups and we call this redundancy. Shouldn’t the same principles apply to your financial health? Are you practicing financial redundancy? Instead of relying completely on your bank which could fail or simply refuse to give you the money you gave them for safekeeping, do you have an alternate way to get money? Instead of expecting your credit cards to work when you need to buy gas, do you have backup cash?

Time is running out I fear, but you can still take meaningful actions now to prepare your family. I will say again that I am not a financial expert and do not claim to know anything more than a 5th grader when it comes to economics but  the steps below are what I have chosen to do. You must make your own choices with the information and resources you have.

Step 1 – Get out of the market now

When we had our last little hiccup with world finances I along with many others watched the value of my 401K go down daily. It was a pitiful sight and I didn’t even have as much money as most people have in there. I certainly wasn’t anywhere close to retirement, but the money invested was my nest egg for what it was worth. It lost half of its value in just a few months. When it regained most of the initial value I had in there after a couple of years I decided to cash out. I took the interest penalty and turned most of my investments into precious metals that I physically have access to. This approach isn’t for everyone but now I am sure that my investment will not be worthless in October. There are many economists predicting losses of as much as 40% or more.

When banks don't feel like they need to give you back your money, this is what it looks like.

Step 2 – Get as much cash out of the bank as you need to live for one month

or longer. Greece is still limiting withdrawals from banks. The money that people placed into the bank is not able to be taken out of the bank. They can use banks to pay bills but they can’t get money out when they want it. Don’t let this happen to you. I have set aside cash in the event that banks declare a bank holiday or severely limit withdrawals. This also works for power outages too when the ATM machines simply aren’t working.

Step 3 – Eliminate debt if you can

Some time back I asked the question of whether we should pay off our credit cards or buy prepping supplies. I do still believe that debt should be paid off. I don’t believe you should be incurring other debts either but must admit I fall short in this area. I haven’t lived an austere lifestyle of rice and beans to save pennies to pay off my mortgage. What happens when everyone is out of a job?

Step 4 – Have an alternate source of income

They can’t fire you if you’re the boss. There are millions of ways you can go into business for yourself and begin making extra money that you can use to pay down debt, purchase vital prepping supplies or simply augment your income. If you are like me and already have a day job, be thankful. A second or third part-time job isn’t without cost and effort, but it can pay off in big ways and give you some breathing room if you lose one job due to a downturn in the economy.

Always make sure you aren't completely dependent on ATM machines, credit cards or bank tellers.

Here are just a few examples of side jobs you can take:

  • Tutoring
  • Website design
  • Graphic Artist
  • Personal Assistant
  • Freelance Writer
  • Catering
  • Elder Care/Baby Sitter/Pet Sitter
  • Editor
  • Seamstress or Tailor
  • Landscaper/Mower
  • Odd Jobs/Handyman
  • Housecleaning

The possibilities are limited only by what you feel like doing and your own commitment. Will you look back after a job loss and miss all those reality TV shows you could have watched?

Step 5 – Start prepping now

If you haven’t started prepping already, it’s not too late! If you have started, make sure you reevaluate your prepping plans to make sure there aren’t any gaps you meant to take care of and forgot. You still have time to stock up on supplies you need. The basics haven’t changed. You need food, water, shelter and security. Do you have those bases covered?

The pages of the Prepper Journal are filled with over 740 articles devoted to Prepping so if you need a jump-start, here are a few links to help you.

We also have most of the articles available in PDF files that you can download to keep spare copies of the information on your computer or spare laptop. If you can’t find what you are looking for use the search bar at the top right of our page. If you still have questions, please use the comments below and the whole reader base will help you.

It’s going to get bumpy from here on out I fear. Are you prepared?

This information has been made available by The Prepper Journal: Are You Practicing Financial Redundancy?

Speedometer - Public Domain

By Michael Snyder – End Of The American Dream

If you have not been preparing for what is coming, you need to get off your sofa and you need to start prepping right now.  Just remember what happened back in 2008.  That crisis took most people totally by surprise.  Millions of Americans lost their jobs, and because most of them were living paycheck to paycheck, all of a sudden most of them couldn’t pay the rent or the mortgage either.  Large numbers of families that were once living a comfortable middle class lifestyle suddenly found themselves destitute.  Well, this coming crisis is going to be even worse by the time it is all said and done, and it is not just going to be economic in nature.  Over the past two trading days, the Dow has gone down more than a thousand points.  The shaking that so many have warned about has begun.  As this shaking plays out, you and your family will need cash, food, supplies and a whole bunch of other things.  If you do not already have everything prepared, then you need to kick your prepping into overdrive because we are on a very compressed time frame now.

But don’t just take my word for it.  A top adviser to former British Prime Minister Gordon Brown named Damian McBride is saying the same thing

A former adviser to Gordon Brown has urged people to stock up on canned goods and bottled water as stock markets around the world slide.

And he didn’t just speak in generalities.  According to an article in one of the most important newspapers in the UK, McBride is urging his fellow citizens to do some very specific things…

“Advice on the looming crash, No.1: get hard cash in a safe place now; don’t assume banks & cashpoints will be open, or bank cards will work,” he tweeted.

“Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.

“Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.”

All of that is great advice.

But I wonder why he is so concerned about people being able to live a month indoors.  Does he know something that the rest of us do not?

Continue reading at End Of The American Dream: It Is Time To Kick Prepping Into Overdrive, Because This Stock Market Crash Is Just The Beginning

About the author:

Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.

Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream

Read his new book The Beginning of the End

stock market wikimedia

By Joshua KrauseThe Daily Sheeple

After taking several major hits on the stock market last week, Wall Street had every reason to believe that Monday would be a bloodbath. They’re currently doing everything in their power to prevent the panic selling that was expected to occur as soon as the stock market reopened.

The first thing that the New York Stock Exchange did today, was invoke the obscure “rule 48″ which is designed to stabilize volatile markets before they open. Rule 48 essentially suspends “the requirement that stock prices be announced at the market open.” The rule has existed since 2007, and has only been applied on two separate occasions. So far, this measure has only been moderately successful. Nasdaq immediately fell by 378 points on the opening bell, while the Dow fell by 1000 points. Both markets have recovered but are still fluctuating heavily.

But that’s not the only stop-gap measure being implemented. If the S&P 500 falls by 7% before 3:25 PM Eastern Time, then thousands of companies on the NY Stock Exchange and the Nasdaq will stop trading for 15 minutes. If the S&P 500 plunges by 20% at any point, the entire stock market will be shut down for the rest of the day. Much like a casino, when the house is losing, all bets are off.

Delivered by The Daily Sheeple

Contributed by Joshua Krause of The Daily Sheeple.

Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .