This article was written by Michael Snyder and originally published at his Economic Collapse blog.
Editor’s Comment: The era of market instability in fall of 2015 was predicted by many experts, including the prolific author Michael Snyder, but showed up even earlier than the much discussed month of September. The dramatic plunges in late August were quickly met by strong surges on the stock market – but this was not the sign of quick recovery, but the giveaway of a vulnerable and wounded animal.
The stock market in particular is subject to arbitrary manipulation, and is much more of an illusion than a real index. Recall that media attention on the back to back days of panic and plunge quickly turned to the shooter who killed a reporter and cameraman, as well as tensions with Russia and China and other big media stories that, planned or not, managed to turn the eyes of American viewers away from market instability and avoid further panic. Why? Because in the end, the stock market is built not on real economic numbers, but on the confidence of the dupes who pour money into it. While the banksters are looting the country and holding its economy over the edge, American savers and investors are being conned… Hold on, it could be a rough ride ahead. Things are anything but settled or normal.
This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like
by Michael Snyder
There is so much confusion out there. On the days when the Dow goes down by several hundred points, lots of people pat me on the back and tell me that I “nailed” my call for the second half of this year. But on the days when the Dow goes up by several hundred points, I get lots of people contacting me and telling me that they are confused because they thought the stock market was supposed to go down. Well, the truth is that if there is going to be a full-blown market meltdown, we would expect for there to be wildly dramatic swings in the market both up and down. A perfect example of this is what we experienced during the financial crisis of 2008. 9 of the 20 largest single day declines in stock market history happened that year, but 9 of the 20 largest single day increases in stock market history also happened that year. If we are moving into another great financial crisis, there should be massive ups and massive downs, and that is precisely what we are witnessing right now.
On Tuesday, the Dow surged several hundred points. There was much celebrating in the mainstream media over this, but what they failed to realize was that this was another big red flag. And we saw this volatility carry over into Wednesday. The Dow was up 171 points early in the day before ending down 239 points.
By themselves, those two days don’t mean a whole lot. The key is to look at them in context. And in context, we have already witnessed the most dramatic stock market crash since the last financial crisis.
There will be more days when the stock market absolutely plummets and there will be more days when it absolutely soars. No stock market crash in U.S. history has ever gone in just one direction continually. There are always giant waves of momentum that cause panic selling and panic buying.
There is one thing that could change that. A major “black swan event” such as a historic natural disaster, an unprecedented terror attack, or the outbreak of war could potentially be enough to chase all of the buyers out of the marketplace. And considering the times that we are moving into, those things should not be ruled out.
But minus some type of event like that, we should expect lots of wild swings in both directions.
Over the past couple of years, I have repeatedly attempted to explain the general principle that markets tend to go up when they are calm and they tend to go down when they are volatile.
If you want the bull market to return, you should be rooting for lots of really, really boring days on Wall Street.
When things are boring, investors make money.
Days that are “exciting” are really bad for Wall Street. Investors like a world that is predictable, and when conditions start changing rapidly they get very, very nervous.
In the months ahead, trillions of dollars are going to be lost in stock markets all over the planet. Feel bad for the retirees and the hard working families that are going to get wiped out by this, but don’t feel bad for the banksters. They have been laughing it up while most of the country has been suffering during our ongoing economic decline. If you don’t believe me, just check out this YouTube clip.
A lot of people are going to be paralyzed during this time, because they won’t know what to do. They didn’t heed the warnings up until now, and they thought that they would be able to safely get out of the market when things started getting crazy. The big ups and big downs in the markets will confuse them, and the mainstream media will be telling them that everything is just fine.
If you have been waiting for the market to send you “warning signals”, then you can stop waiting because it is happening right in front of your eyes.
Now is not a time for fear. Personally, I seek to live my live in a constant state of peace without any fear even though I write about some very hard realities almost every day.
This is part of the reason why I so adamantly encourage people to prepare for what is ahead. Knowledge and preparation can help eliminate fear.
If you already know what is coming and you are already prepared for it, you won’t be freaking out like the rest of the general population will be when things start really going crazy.
I want to share something with you that Brandon Smith wrote recently…
Panic betrays and fear kills. The preparedness culture is built upon the ideal that one must defeat fear in order to live. How a person goes about removing uncertainty from the mind is really up to the individual. For me, combat training and mixed martial arts is a great tool. If you get used to people trying to hurt you in a ring, it’s not quite as surprising or terrifying when it happens in the real world. If you can handle physical and mental trauma in a slightly more controlled environment, then fear is less likely to take hold of you during a surprise disaster.
Six months may be enough time to enter a state of mental preparedness, it may not be, but more than anything else, this is what you should be focusing on. All other survival actions depend on it. Your ability to function personally, your ability to work with others, your ability to act when necessary, all rely on your removal of fear. Take the precious time you have now and ensure you are ready to handle whatever the future throws at you.
Life in America in the years ahead is going to look dramatically different from what life in America looks like right now.
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.
If you want to know what things in America are going to look like in a few years read his new book The Beginning of the End.
This article was written by Michael Snyder and originally published at his Economic Collapse blog.
The government really DOES want to kill you.
Life is already a lot different in some ways. Just keep prepping and stacking. It’s possible I could be bugging out soon.
I agree with you Braveheart…life is already a lot different than it used to be.
We are in very scary times.
The US will not handle it as gracefully as Greece. Just look at how people act the day after Thanksgiving. Or how people acted when the EBT cards went down for a couple of hours.
Everyone needs to be prepared to lay low for quite a while.
Fullmoonrizing, welcome aboard, and I have to agree.
Ah; here in Wyo the day after Thanksgiving we eat leftover turkey sandwiches and dressing: What’s an EBT card; is that like a hunting lic?
Had a few beers with a good fried over the weekend. I told him this, “If you think the world has dramatically changed over the last 15 years, wait until you see what it looks like in another 10 years.”.
To which he replied, “You’re going to make me wait 10 years to tell you how wrong you were?”.
To which I said, “No, you’ll unfortunately be telling me how right I was in 3 to 5 years, maybe even sooner. Believe me, I don’t want to be right, but everything based on the last 15 years makes the next 10 look like we’re nose diving into the shitter.”.
Then he said, “So I should party like it’s 1999?”.
I replied, “No, like it’s 1929.”.
From there, the conversation went into all sorts of dark shit, as you can imagine. Anyway, just look at what the last 15 years have taken from us as Americans only, not including the hell unleashed on other nations. You think this ride is over, but it’s just beginning.
These are like contractions, and lil miss America is about to spit out a big ol FAT baby and we’re going to have to figure out how in the hell to feed it.
JoeR, I feel the same way, and our country has changed so dramatically in the last 15 years heck just in the last 6 or 7 for that matter. And it certainly seems to be on overdrive now. Stock market crash or not, pretty much anybody that can fog a mirror can plainly see we are headed for a major turning, whether fast or slow our way of life will and is changing, and as we all know it is not changing for the better. I know I can be a pessimist (though I consider myself a realist) I believe anybody who doesn’t admit it is really just being intentionally in denial. Although in my experience, most of my family and friends that were always so “positive” and thought I was a bit crazy, they have all developed these internal fears of dread and urgency. A lot of people are finally realizing it is way past time to open their eyes
Good luck Paul Blart. You have been talking about bugging out every other week for the last five years. When you do bug out, will you be posting from under your cousins bosom? My guess is your cousins hope the Memphis savages take care of you so they can enjoy the fruits of your labor.
I have been trying to get it through his thick skull…”if you aint there, you aint gonna get there”. I sincerely wish him luck, but am afraid luck and limited experience wont be enough. Better to be there a year or two early, than a hour late.
Food. Water. Shelter.
Remember, ” someday” I’ll be right! Thank God for that word, if it weren’t for ” someday” me and all the other doom porn merchants would be found out so fast we’d have our asses run out of town being chased by a crowd with pitchforks. Thank God for ” someday.”
And something to defend all three.
I’ve had my doubts about the media shooting in Atlanta. But I considered it more of a black flag event for the gun control extremists. I didn’t consider that it could have anything to do with refocusing the sheeple’s attention away from the markets…I figured that was the purpose behind the hype over the Kentucky Clerk and gay marriage…hmmm
Just woke from a nap and saw the Faux bus report showing a drop well below the high earlier today.
No big deal, but the reporter was all apeshit talking like, “why is this happening, there has been no news reports of anything, blah, blah, blah”.
They finally found this guy that had to explain it to this gal, that most day trading is done by electronic/computer signals, etc. That the volatility is more technical than anything.
I wonder where she got her job credentials. She sure is a red headed looker, but how many years has she been doing this one job? Quite a few, but evidently not learning as she goes.
The pendulum continues to swing, and the see-sawing continues, until…..something triggers a panic. Will it come tomorrow? Will it be Monday, after something triggers from the Asian markets?
Maybe, maybe not. But a natural disaster could even be the catalyst. Time will tell.
I will hand it to FOX…they certainly have a knack for finding gorgeous “info-babes” to put on their “news” programs. Very easy on the eye for sure.
I’m a little less impressed with some of them regarding their understanding of the issues and the world. Sorry…but I just don’t think 20 somethings have enough years under their belts to fully grasp how the world works.
But then….when you have certifiable idiots like Marie Harf as spokespersons for the State Department, it’s hard to be overly critical of FOX.
And then….considering the other talking heads on all of the other media outlets….you may as well have something pretty to look at while they are feeding you crap.
Very good article.
Michael has touched on some very critical points that my wife and i live by…..
“Now is not a time for fear. Personally, I seek to live my live in a constant state of peace without any fear even though I write about some very hard realities almost every day.”
Those that know me by my commentaries, and by wearing my heart on my sleeve, on this site, know this is precisely how I “try” to live.
Not pushing fear porn, or biblical terror; but telling truths to prepare others that they too may not have fear. Rather, that they may gain faith by accepting truths of coming events, and know they must happen first.
Fear not, O land; be glad and rejoice: for the LORD will do great things.
This is a promise for the last days. It is for those that have turned their hearts towards him.
You are right on. If you are a conservative who believes that if you make the right choices selflessly good things will come to you. Yes there will be some major changes happening soon but they will be bad for the people who are the cause and wake everyone else up. We have been wasting are hard earned money on everything except our future.
“America Going To Look Dramatically Different”…having been born (here in the U.S.) in the 1950’s that already happened a looooong time ago. There is nothing about today’s world that even remotely reminds me of the time period I grew up in, including my young adulthood years as well. NOTHING.
Too bad we can’t be around 5000 years from now and find out how different America will look THEN? Nothing lasts forever, don’t spend your short time on Earth immersing yourself in doom porn about how and why things change, they just DO. It’s always been and will always be that way, enjoy today, because nobody knows how many tomorrows they have.
Who gives a shit if the market crashes?
The US barely has any manufacturing base left anyway. So who cares if McDonald’s stock drops.
Just to show you how fucked up the stock market is, McDonald’s restaurants are one of the 30 stocks that comprise the Dow Jones Industrial Average.
Why is McDonald’s on the Industrial Average?
Because America is screwed and the Stock Market is nothing but a massive ponzie scheme built on a lie.
Because my friend McDonals is considered a hamburger manufacturing enterprise and not a restaurant
Sad state of affairs when a burger shack is on the DOW 30 and not a manufacturing concern. Since all of our manufacturing has gone overseas…
McDonalds make most their profits from leasing the land and buildings to franchise owners. Each franchise pays a certain percent of sales to McD’s corporate hdquarters, and if they miss the mark for requirements, they have a lease they have to pay if sales are down.
What will tomorrow bring?
same as today .
A shit load of American changing muslim immigrants.
Market Mood Swings?
How about people’s mood swings.
One thing for certain that if you are easily excitable, this place is not for you. My first intentions was to read and learn how preppers interact with others. It changes over time but it’s not good.
Second was to converse with others about the problems in the world and what they see and hear. Even what they are experiencing and doing, where they are at.
Third is the information on products and equipment.
To share information and try to help others to prepare.
This site is rare. Even with all the turmoil it is the best teaching tool, bar none. I have learned so much from all of you. I have learned so much about myself. What I would do. Not very hospitable.
Rest assured that those that have read our statements have change their opinions on how they would approach issues and events in the future. Time is compressing and there is not much left.
“Lunatic Fringe, we all know you’re out there”.
So true, Slingshot! I’ve learned a ton, and shared a little over time.
And remember, just because you are paranoid doesn’t mean that they aren’t out to get you.
Now we know. He said he wanted his own army.
Being prepared is like being done with Christmas shopping early. I am always done early. Years ago, I would go to the mall on Christmas eve and just watch the panicked shoppers rushing around. The same thing happens now when a hurricane or snow storm approaches. I’m ready, but I see all the other people rushing around in a panic.
It’s good to be prepared.
McDonalds and other fast food restaurants are considered manufacturers now. They have assembly lines to make there burgers. That is why, when we lose a manufacturer of autos or other appliance makers, it does not show up in the Manufacturing Quarterly Report. You can not make this stuff up, they do it to fudge the market numbers.
Keep pounding it. At least we should be prepared. USA market is mostly institutional investors. Look up your favorite stock and see how much. 70%? 80%? Its amazing. That’s 401-K’s and billionaire money folks. As long as the supply of dough from them keeps coming in every week, then the Mutual Funds have to toss it somewhere.
So, that plus the credit spread nearly-free-credit will keep this puppy up.
But, the AMAZING thing about the stock market is the CHARTS tell another story. The roll-over the last month or so and the inability to rally ought to be shouting “Risk! Risk! Risk!” to ANYONE with 1/2 a brain. My only question is whether to loose my $1000 in tax penalty on my remaining 401-K or to gamble it. Right now I’m just gambling it.
Market breakdown from here and Katy Bar the Door. Everyone who knows, knows that. TPTB. PPT. Mutual Funds. They HAVE to keep this puppy pumped up.
Reality is the mass of Americans will realize the market is in a recession well past 1/2 down and possibly near the bottom. So, we can put a 70% probability this will be a big one on today and confirm in a week (or month if it rallies one more time). And then ride the market down as the credit bubble pops.
But, lots of 401K power and creditilicious QE power; so, might be able to pull this one from the fire. 30% chance or more. I mean, they’ve done it again and again.
My preps would by any standard be considered inadequate. It’s all too much for me to think about. I imagine I’ll just wing it when the tougher get’s going. I’ve managed it in similar style my whole life so none of this urgency light’s a fire under me. Southern born, laid back and a survivor on little so far. It works for me. I was watching some videos on youtube, the only kind this old phone gets, they were about the flat Earth and made some good points, it opened my mind to the possibility.
Ughh……..Flat earth ?
Lets see here, since Obama has been in office:
1. Systematically dismantling of our military. One of the first things he did was to cancel a missle defense system. Tried to kill the A10! Cut the stealth fighter program short. Cut one of our missles that some of our allies including the UK buys from us with out even telling them he was doing it!
3. Doubled the national debt.
4. Weakened the constitution by disregarding it every chance he gets.
5. Left two of our Marines to rot in a Mexican jail.
6. Left Americans to rot in Iran jail, including a Christian pastor.
7. Makes a deal for Bergdal.
8. Loves the Castro’s in Cuba.
9. Hates Israel.
10. Sent a team to Israel to try to affect their elections.
11. Iran deal.
12. Hurt out relations with or allies.
On EVERY issue, write down the right thing to do for a freedom loving American president and this man does the opposite.
Now consider what a marxist would do and he does THAT, EVERY SINGLE TIME.
Our enemies no longer fear us and our friends no longer trust or respect us.
I could literally go on with examples all day and yet 90% of Americans are still asleep.
I know I am, for the most part preaching to the choir here, but I try to wake up as many as possible.
Obama has plunged the nation into multiple crises to include the following:
• Using the IRS to target Obama’s political enemies
• Repeatedly and lawlessly rewriting the Affordable Healthcare Act
• Benghazi debacle and cover-up
• Associated Press reporters’ phone records scandal
• ATF “Fast and Furious” scheme and killing of US enforcement agent
• HHS Secretary Sebelius solicits large donations from companies to save Obamacare
• Pigford scandal
• Immigration Enforcement – relentless subversion by DOJ
• GSA Administrator resignation in the face of blatant waste of taxpayers’ money
• Justice Department monitoring reporter James Rosen of FOX News
• Cash for Clunkers fiasco
• Solyndra and other solar company financial scandals
• BP Gulf oil spill gross misrepresentation and mishandling
• Obama’s birth place questioned according to his own Harvard Law Review entry
• CIA Spying on the Senate
• NSA spying on US citizens and world leaders alike
from h ttp://stateofthenation2012.com/?p=4717
I’m considering buying a couple of Motorola frs radios, model MS350R…anyone have them, how well do they work?
Was looking at the MS352R, and the reviews show slightly clearer broadcast at distances but if I recall they have 3a batteries while the 359 has 2a.
I need something to work in hilly areas, not at great distances but not straight line of sight.
I doubt if this post will make it thru, my last 4 posts have been banned. Wonder what I did?
Might just go back to read only here.
This site is like the article in that it looks dramatically different than a year ago. I miss articles by guys like Selco and others that made it interesting.
The baufeng UV5R is an excellent dual band that can be tuned for the GMRSfrequencies. You can find it on amazon for twenty six bucks each. Hellofa deal.
america is going to look drmatically different MANY MANY years from now …..nothing to worry about in the near future! if you are over 30-40 years old then you will probably never experience the fallout
Tomorrow is 911 right? Crickets…….. . . . . . . . .Good day for the Dow to crash. As good a day as any.
Every other year they’ve warned us about impending doom. Haven’t heard anything this year…
When o when will you people wake up
I don’t think it’s going to be as bad as what is being claimed. The stock market rises have occurred despite poor growth of wages, job creation and stabilising profits.
What I would like to know though is when the QE is reduced, will stock markets ‘correct’ then?
I believe someday it won’t matter if QE stops or increases. The market thrives on the feelings of the big investors- be it fear and panic or optimism given certain events that effect the economy.
Superstitious belief is an expression of primitive ignorance and is not worthy of humans.
The Market is on the verge of hemorrhaging. Everyone knows it is coming.