European Banks Have Their Worst Two Day Stretch EVER As The Global Financial Crisis Intensifies

Over the last two trading days, European banks have lost 23 percent of their value. Let that number sink it for a bit. In just a two day stretch, nearly a quarter of the value of all European banks has been wiped out.

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Corporations Are Defaulting On Their Debts Like It’s 2008 All Over Again

The Dow closed above 18,000 on Monday for the first time since July.  Isn’t that great news?  I truly wish that it was.  If the Dow actually reflected economic reality, I could stop writing about “economic collapse” and start blogging about cats or football.  Unfortunately, the stock market and the economy are moving in two completely different directions right now.  Even as stock prices soar, big corporations are defaulting on their debts at a level that we have not seen since the last financial crisis.  In fact, this wave of debt defaults have become so dramatic that even USA Today … Continue reading Corporations Are Defaulting On Their Debts Like It’s 2008 All Over Again

A 918 Point Stock Market Crash In Japan And Deutsche Bank Denies That It Is About To Collapse

On Tuesday junk bonds continued to crash, the price of oil briefly dipped below 28 dollars a barrel, Deutsche Bank was forced to deny that it is on the verge of collapse, but the biggest news was what happened in Japan.

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2016 Market Meltdown: We Have Never Seen A Year Start Quite Like This

We are about three weeks into 2016, and we are witnessing things that we have never seen before.  There were two emergency market shutdowns in China within the first four trading days of this year, the Dow Jones Industrial Average has never lost this many points within the first three weeks, and just yesterday we learned that global stocks had officially entered bear market territory.  Overall, more than 15 trillion dollars of global stock market wealth has been wiped out since last June.  And of course the markets are simply playing catch up with global economic reality.  The Baltic Dry Index just … Continue reading 2016 Market Meltdown: We Have Never Seen A Year Start Quite Like This

The Financial Apocalypse Accelerates As Middle East Stocks Crash To Begin The Week

It looks like it is going to be another chaotic week for global financial markets.  On Sunday, news that Iran plans to dramatically ramp up oil production sent stocks plunging all across the Middle East.  Stocks in Kuwait were down 3.1 percent, stocks in Saudi Arabia plummeted 5.4 percent, and stocks in Qatar experienced a mammoth 7 percent decline.  And of course all of this comes in the context of a much larger long-term decline for Middle Eastern stocks.  At this point, Saudi Arabian stocks are down more than 50 percent from their 2014 highs.  Needless to say, a lot of very … Continue reading The Financial Apocalypse Accelerates As Middle East Stocks Crash To Begin The Week

Welcome To The New Normal: The Dow Crashes Another 390 Points And Wal-Mart Closes 269 Stores

Did you know that 15 trillion dollars of global stock market wealth has been wiped out since last June?  The worldwide financial crisis that began in the middle of last year is starting to spin wildly out of control.  On Friday, the Dow plunged another 390 points, and it is now down a total of 1,437 points since the beginning of this calendar year.  Never before in U.S. history have stocks ever started a year this badly.  The same thing can be said in Europe, where stocks have now officially entered bear market territory.  As I discussed yesterday, the economic slowdown and financial … Continue reading Welcome To The New Normal: The Dow Crashes Another 390 Points And Wal-Mart Closes 269 Stores

The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market

It was another day of utter carnage on Wall Street.  The Dow was down another 364 points, the S&P 500 broke below 1900, and the Nasdaq had a much larger percentage loss than either of them.  The Russell 2000 has now fallen 22 percent from the peak, and it has officially entered bear market territory.  After 13 days, this remains the worst start to a year for stocks ever, and trillions of dollars of stock market wealth has already been wiped out globally.  Meanwhile, junk bonds continue their collapse.  JNK got hammered all the way down to 33.06 as bond investors race … Continue reading The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market

Bear Market: The Average U.S. Stock Is Already Down More Than 20 Percent

The stock market is in far worse shape than we are being told.  As you will see in this article, the average U.S. stock is already down more than 20 percent from the peak of the market.  But of course the major indexes are not down nearly that much.  As the week begins, the S&P 500 is down 9.8 percent from its 2015 peak, the Dow Jones Industrial Average is down 10.7 percent from its 2015 peak, and the Nasdaq is down 11.0 percent from its 2015 peak.  So if you only look at those indexes, you would think that … Continue reading Bear Market: The Average U.S. Stock Is Already Down More Than 20 Percent

Stock Market Crash 2016: This Is The Worst Start To A Year For Stocks Ever

We have never had a year start the way that 2016 has started.  In the U.S., the Dow Jones Industrial Average and the S&P 500 have both posted their worst four-day starts to a year ever.  Canadian stocks are now down 21 percent since September, and it has been an absolute bloodbath in Europe over the past four days.  Of course the primary catalyst for all of this is what has been going on in China.  There has been an emergency suspension of trading in China two times within the past four days, and nobody is quite certain what is going to happen … Continue reading Stock Market Crash 2016: This Is The Worst Start To A Year For Stocks Ever

Stock Markets All Over The World Crash As We Begin 2016

The first trading day of 2016 was full of chaos and panic.  It started in Asia where the Nikkei was down 582 points, Hong Kong was down 587 points, and Chinese markets experienced an emergency shutdown after the CSI 300 tumbled 7 percent.  When European markets opened, the nightmare continued.  The DAX was down 459 points, and European stocks overall had their worst start to a year ever.  In the U.S., it looked like we were on course for a truly historic day as well.  The Dow Jones Industrial Average was down 467 points at one stage, but some very mysterious late day … Continue reading Stock Markets All Over The World Crash As We Begin 2016

The Rate Hike Stock Market Crash Has Thrown Gasoline Onto An Already Raging Global Financial Inferno

If the stock market crash of last Thursday and Friday had all happened on one day, it would have been the 7th largest single day decline in U.S. history.  On Friday, the Dow Jones Industrial Average was down 367 points after finishing down 253 points on Thursday.  The overall decline of 620 points between the two days would have been the 7th largest single day stock market crash ever experienced in the United States if it had happened within just one trading day.  If you will remember, this is precisely what I warned would happen if the Federal Reserve raised interest rates.  … Continue reading The Rate Hike Stock Market Crash Has Thrown Gasoline Onto An Already Raging Global Financial Inferno

December 14th To 18th: A Week Of Reckoning For Global Stocks If The Fed Hikes Interest Rates?

Are we about to witness widespread panic in the global financial marketplace?  This week is shaping up to be an absolutely critical week for global stocks.  Coming into December, more than half of the 93 largest stock market indexes in the world were down more than 10 percent year to date, and last week stocks really started to slide all over the world.  Here in the United States, the Dow Jones Industrial Average is down about 600 points over the past week or so, and at this point it is down more than 1000 points from the peak of the market.  … Continue reading December 14th To 18th: A Week Of Reckoning For Global Stocks If The Fed Hikes Interest Rates?

Stock Market Crash October 2015? 9 Of The 16 Largest Crashes In History Have Come This Month

The worst stock market crashes in U.S. history have come during the month of October.  There is just something about this time of the year that seems to be conducive to financial panic.  For example, on October 28th, 1929 the biggest stock market crash in U.S. history up until that time helped usher in the Great Depression of the 1930s.  And the largest percentage crash in the history of the Dow Jones Industrial Average by a very wide margin happened on October 19th, 1987.  Overall, 9 of the 16 largest single day percentage crashes that we have ever seen happened … Continue reading Stock Market Crash October 2015? 9 Of The 16 Largest Crashes In History Have Come This Month

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

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 … Continue reading The Stock Markets Of The 10 Largest Global Economies Are All Crashing