After rallying on Friday, stocks tanked on Monday, dropping over 450 points. In fact, it was the worst first day of the second quarter since the Great Depression.
Stocks dove Wednesday as well on the heels of China’s announcement that they will intensify the trade war with more tariffs, according to most analysts. But Peter Schiff, the financial guru who accurately predicted the 2008 recession has a different take.
According to Schiff’s blog, Schiff Gold, most analysts blamed the plunge on the escalating trade war, but Peter Schiff sees it quite a bit differently. He said it was just another bad day in a bear market. In fact, he said the market could have rallied because the Chinese response wasn’t as bad as it could have been. But when you’re in a bear market, all news is bad news.
Schiff says that the media’s talking heads are simply using the tariffs as an excuse. The real truth is that most people are in a selling mood. “Stocks are expensive. The bull market is over. It’s now a bear market. People want to get out. People are allocating out. Growth is slowing whether people want to acknowledge it or not,” said Schiff.
The media pundits are optimistic too; just like they were before the 2008 recession, said Schiff. “That’s what’s going on now. Nobody thinks there’s a problem. Everybody is optimistic. Everybody is bullish. So, when you see these classic signs that something is going wrong, you just ignore it.”
The bottom line is Schiff thinks the economy is going to tank (although he isn’t sure how soon that will occur) and the stock market is going to continue its bear run. But the Fed is not going to be able to come to the rescue this time around because of inflation. If it does try to launch more QE to bail out the stock market, it will completely tank the dollar.
When we do all that, the dollar is going to implode because everybody is going to know that the experiment failed. Everybody is going to know there is no way out of this box. There is no normalization of rates that is ever going to happen. Their balance sheet is never going to shrink. The balance sheet is going to grow permanently, which means this banana republic debt monetization. They can no longer pretend that they’re not doing the same things as South American banana republics. It’s a pure ‘we just print money to finance government spending,’ which is going to explode.
The national debt is an often overlooked aspect of the economy, but in truth, it will play a big role in an economic collapse and Schiff is sounding the alarms.
These wild daily swings mean only one thing: the market is careening out of control.
This happened just before the Crash of ’08-’09.
Today the market fell over 500-points at the open, and then, as if by magic, looks to close 200-points on the plus side? Can you say “totally controlled and manipulated.”
The free market economy died in 2008. It has been 10-years since the crash. Can Wall Street and the country be far behind?
blame, said the same here just the other day. Investment is not the reason for the markets anymore. It isn’t like you believe in some product or industry and decide to aid in its funding to help it grow. Reaping a gain yourself for taking a risk along with that company. Nope. It’s just a casino. Electronically algorithmically controlled for the most part. Humans aren’t even part of the equation really. Who cares if working slobs punching a clock to make some widget lose their jobs? Surely not the men in funny vests on the trading floors. We need to get rid of parasites like them. Invest in ourselves and only those we know and think have a good idea.
“It’s just a casino. Electronically algorithmically controlled for the most part.”
And pumped up with money created from nowhere with stocks purchased in buybacks from money loaned at almost nothing interest rates that are complements of central control economic planning. A great percentage of this was felony illegal under Glass-Steagall. It was at one time reality, then a movie with good special effects and now a stage show of set change background veneer false front homes between acts.
If it was that bad, my “stop loss” blue chip stocks would have sold by now.
That crash is going to echo for quite a while. They’ll have to legalize panhandling everywhere. Brother can you spare 10 bucks for a beer. It’s the magical mystery money tour.
“Brother, can you spare a dime.” That was the Old Depression. This is the New Depression.
Just in Los Angeles alone there are over 57,000 homeless. They have been abandoned to die. Meanwhile, the “powers that be” eagerly await the arrival of the coming caravan, the thousands of illegals and undocumented getting ready to arrive here. (I was going to say “cross the border,” but we have no borders anymore.)
In the Old Depression you had musical chairs. In the New Depression there are no chairs. There is no music.
better start the rallying cry now….LEGALIZE CANIBALISATION, LEGALIZE CANIBALISATION!
““Brother, can you spare a dime.” That was the Old Depression. This is the New Depression.”
And the new expression for the new Depression will be: “WILL WORK FOR FOOD” 🙁
The caravan has been stopped and busted up in Mexico. A small win for us.
Has he ever been right? I can’t remember a time he was.
Like I always say if you don’t have it in our hand you don’t have it.
The DOW moving 500 points in a day sounds like a lot, but it’s only about a 2% move.
We’ve had a couple little market drops this year, but we are right back at DOW 24000, that’s not a crash. Especially when there’s a reason.
Trump is dealing with another problem previous presidents ignored, Chinese trade intransigence, fraud and theft of intellectual property. Trump is pushing back and Wall Street is afraid Trump is making waves. The wild changes in the market are just stupid. Perhaps only a few stocks would be directly affected by Trumps rhetoric IF it became a reality, so why did the whole market move? I suspect market manipulation. The market is being gamed to take people’s 401k money.
Point well taken. Still, I miss the days when 500 points was 500 points. [sarcasm]
Then you have forgotten his 2008 prediction of the crash
“Our hand”? You sound like a revenuer!
Peter Schiff must be great at parties, if he’s ever invited to any! Anyone remember the character from the comic strip Little Abner? Remember the character Joe Btfsplk who always went around with a dark storm cloud over his head which was always raining on him? Schiff reminds me of that character.
Peter Schiff: We Are In A Bear Market, All News Is Bad News
No. This could be good news if you are smart.
Look for stocks that have high volume and high daily swings.
I have been making a LOT of money buying small stocks in the $3 to $4 range that have up to 10% swings a day.
All News Is Bad News only for big investors that have millions of shares of a stock. They can’t sell quickly without crashing the stock. It usually takes a big mutual fund 30 days to get out of a stock. If they tried to sell all at once the price would crash.
That does not apply to the little investor.
Lots of money to be made here with little effort if you know what you are doing.
John Steiner. How about a stock pick to get my feet wet. Been wanting to do that for a long time but i’m not experienced enough to not screw myself
if you are going to buy and sell within one or two days of other, then Sanches Energy. Symbol SN
If you want to buy and hold to collect dividends, then get a DOW JONES stock.
Look for negatives and that’s what you’ll find.
Look for positives and that’s what you’ll find.
Argue for your limitations and they’re yours.
The Chinese are using a petro-yuan, to replace the petro-dollar, and it’s a clear indication that the dollars’ days are numbered. Think of this scenario, and it’s very easy to do so. The markets tank and Treasury yields go way up, especially ten year. The DOW, et al tank. A trillion more is injected into the economy, via fiat printing press, devaluating the dollar, more. The Chinese, Japanese, British, et al are holding several trillion dollars, even the EU. They see this gross dollar devaluation, and dump the ones they have, trying to get some value before it’s all gone. Hyperinflation. Average American is ruined.
TPTB need the US military as their global enforcer. That requires funds. The US may decline but the US military will still be funded for TPTB use. The rouse that we have enemies thus requiring these funds and personnel will be continued complements of the Main Stream Media our PRAVA.
TPTB will go to war (and its they that decide against who and why). War is coming.