A potential catastrophe could occur when the current economic bubble bursts and Peter Schiff has been warning of this for a while now. The signs of economic distress are finally showing up as global markets tumbled Tuesday with European stocks touching a two-year low while United States equity futures are deep in the red.
Stocks took a nosedive on investors fears of political antics such as the trade war and rising interest rates.
Before the U.S. market opens several major companies will report results, including Caterpillar (CAT), McDonald’s (MCD), Lockheed Martin (LMT), United Technologies (UTX), 3M (MMM), Verizon (VZ), and Harley-Davidson (HOG). Results out of Caterpillar will be most closely watched with investors looking for any signs of inflation pressures, trade tensions, or a slowdown in economic growth out of the industrial giant, which is often seen as a bellwether for the global economy. –Yahoo Finance
In the past eight days, $4 trillion has bee wiped off from what had been record high values. According to NBC News, Europe’s main markets started down as much as 3 percent and shares tumbled in Asia after a wild day for U.S. markets. Two days of steep losses have erased the U.S. market’s gains from the start of this year, ending a spate of record-setting calm for stocks. The Dow Jones industrial average closed down 1,175 points on Monday, as the market bet on more interest rate hikes, the same day that a new Federal Reserve chairman was sworn in.
On Tuesday, Taiwan’s main index lost 5.0 percent, its biggest since in 2011 and Hong Kong’s Hang Seng Index dropped 4.2 percent. Japan’s Nikkei dived 4.7 percent, its worst fall since November 2016, to four-month lows. Australia’s benchmark S&P ASX 200 slid 3.4 percent, South Korea’s Kospi declined 2.4 percent and the Shanghai Composite index was off 2.2 percent. –NBC News
“It is a source of some concern that asset valuations are so high,” outgoing Federal Reserve chair Janet Yellen told CBS News, highlighting price-earnings ratios in equities. Yellen appeared to be sounding the alarm on stock prices urging caution. But most economists have foreseen this kind of a market drop.
“Everybody knew this was coming — stocks are close to record valuations and it was a matter of when it was going to happen, not if,” said Dan North, chief economist at Euler Hermes North America. “I would expect that at this point, it’s probably sentiment-driven and we’ll get a rebound.
David Kelly, the chief global strategist for JPMorgan Asset Management agrees with North’s assessment. “It’s like a kid at a child’s party who, after an afternoon of cake and ice cream, eats one more cookie and that puts them over the edge,” Kelly said.
Last week, many in the mainstream media talked about the trade war, the situation in Italy, and the tensions with Saudi Arabia over the murdered journalist, linking those situations to a sliding market. But Peter Schiff had a different explanation, according to Seeking Alpha, and that is: we’re in a bear market.
“The market probably would have fallen even if none of those things happened. You know, when you’re in a bear market, and I think there’s a very good chance we are in a bear market, you don’t need an excuse for the market to go down. The market just goes down. It’s just that when people don’t know they’re in a bear market, they’re always looking for excuses. They can’t accept reality.” -Peter Schiff, Seeking Alpha
Schiff has been warning of a market collapse for quite some time, and he said it could very well be upon us.
“Now all of a sudden, finally, after all of these years, things are happening, which are screaming, ‘Ah-ha! Right, I’ve been right.’ Here this stuff is now happening, that I’ve been forecasting – these are the sure signs that the collapse is near. Yet, the mainstream is completely oblivious because they have no idea there’s a problem. If you don’t know you’re in a bubble, you don’t see the pins. I’ve been calling this bubble for a long time and finally, it’s pin, pin, pin, right? And nobody sees it.” – Peter Schiff, Seeking Alpha
As planned. Just like 2008 and 1929.
Schiff has been warning of a crash for five years, right along with Gerald Celente. Even a broken clock is correct twice a day.
I have told this community for years that a Crash would likely start in either Europe or China. Both are more likely to collapse before the USA.
War IS coming, keep prepping. 🙂
Five years? He has been for decades.
He looked like a prophet when he called the housing bubble collapse the year or two before it happened in his debate at the National Association of Realtors, when he argued against their PHD economics expert.
However, he seemed to keep arguing that it would keep getting worse and worse even into 2013, but seems to have been wrong.
I’m just not sure what to make of this guy.
Watch that debate, and it is truly amazing.
However, the “Broken clock is right even twice a day” could be the issue here.
However, I wouldn’t discount what he says.
When the walls come tum-bel-ling down. Tum-bel-ing, tumble-ing DOOWWWNNNNNN.
Trump = Massive recession (and makes it worse by doubling down on obstinate)
Hillary = Immediate nuclear war with Russia / fairly decent approaching the point of massive recession somewhat mitigated by more free shit for everyone money printing that works for a year and a half / equal rights for avocados to abort baby gay whales that lasts forever thanks to her Justice picks.
Shit choices but clearly one was worse.
The Kabuki with Russia is just that. Nothing. Fuel for the red meaters.
What we need to be concerned with is Trump’s overseeing of the final wealth theft he is instrumental in for his (((handlers))).
The new Axis of Control will be Israel/China/Russia (after they leave America the dried out husk we are becoming).
Trump is the Hammer.
the world fed banks are the hammer.
if the fed wasn’t raising rates, the recession that is a certainty in 2019; wouldn’t be happening.
true, much of the world can barely make it with rates at 3% but if you raise that by 50 percent; it crushes all growth and sets on a decline.
trump is actually keeping the usa out of recession longer than it should be because of his actions. have you seen Europe, japan, china ? they are all in serious trouble.
This is all by design. Once the fiat system and dollar collapses, the current system will be replaced by a global digital money (aka a version of bitcoin using blockchain technology). The transition to the new monetary system will be completed by 2028 when fiat money will no longer be used. Obviously for this to happen the current system has to implode, which it’s about to start. Good luck and make sure you invest some cash in crypto, it can make you rich later on.