Sunday, December 20, 2015

Michael Snyder Might Actually Be Onto Something...

I continue to subscribe to "The Economic Collapse Blog", even though Michael's "The stock market will crash next month" "Oh, wait, it didn't, but it will surely crash next month" predictions can get a little tiring.

The Fed finally raised interest rates for the first time since 2008, and sure enough, the market responded.

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.  But when news of the rate hike first came out on Wednesday, stocks initially jumped.  This didn’t make any sense at all, and personally I was absolutely stunned that the markets had behaved so irrationally.  But then we saw that on Thursday and Friday the markets did exactly what we thought they would do.  The chief economist at Gluskin Sheff, David Rosenberg, is calling the brief rally on Wednesday “a head-fake of enormous proportions“, and analysts all over Wall Street are bracing for what could be another very challenging week ahead. 
When the Federal Reserve decided to lift interest rates, they made a colossal error.  You don’t raise interest rates when a global financial crisis has already started.  That is absolutely suicidal.  It is the kind of thing that you would do if you were trying to bring down the global financial system on purpose. 
Surely the “experts” at the Federal Reserve can see what is happening.  Junk bondshave already crashed, just like they did in 2008.  The price of oil has crashed, just like it did in 2008.  Commodity prices have crashed, just like they did in 2008.  And more than half of all major global stock market indexes are already down at least 10 percent for the year so far.

I'm not convinced the majority of investors have any more of a clue what they're doing than the Federal Reserve does.

Supposedly, the crashing price of oil is a bad thing. For me, as a consumer, it's a great thing. I can remember just a few years ago when it cost me $45 to put gas in the 13 gallon tank of a Kia Soul.

I can fill the truck I'm driving now for about $30 when the tank is low at current prices.

When I first got to the area I'm living now, 2 year ago, gas was $3 a gallon. I drove past BJ's gas station this afternoon, and it was $1.66. The Fasmart I usually stop at close to my house was $1.79.

Keep gas low. I want to see it go back to under $1 a gallon like when I was in high school. I could pull a few dollars in change out of the couch and buy enough gas to run my dad's Hyundai Excel all freaking day.
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