First I said I believed the US stock market would plunge in January, but I also said that January would not be the biggest drop, but just the first plunge that begins a global economic collapse: the big trouble for the economy and the stock market, I said, would show up in “early summer.” That’s when the stock market crash that began in January would take its second big leg down, and global economic cracks would become big enough that few could deny them.
(Now I’ll add a prediction — that even worse will unfold in the fall … unless summer becomes so bad that central banks rapidly reverse course on unwinding their balance sheets and raising interest; but I think they will stay their promised courses into the fall and into a global economic crisis.)
The stock market did plunge in January and on into February, with the Dow eventually taking its largest single-day point drop in its long history. That drop busted the Trump Rally, and the market never recovered, leaving US stocks (and stocks all over the world) shattered in “correction territory” for half a year. With a half a year for perspective now, here is a look back what that event did:
What is really happening is that, as the Fed is letting the air out of all the tires, all the stock markets in the world — since the dollar is a global currency — are becoming less stable. They are becoming less stable because it was always only central bank free-and-easy money that supporting an artificial wealth effect in stocks and bonds. Therefore, as more air goes out of the fake recovery, all markets are less able to withstand the shocks in the road that hit them. The fail-safe shock absorber that “the Fed has your back” is gone.
LOT more inside link,,,,,,,,,,,
http://www.investmentwatchblog.com/epocalypse-ahead-on-highway-to-hell-for-global-economy-and-us-stock-market/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 
