Bank Of America Analyst: A ‘Flash Crash’ In Early 2018 ‘Seems Quite Likely’ – Michael Snyder THE ECONOMIC COLLAPSE BLOG
Posted: 20 Nov 2017 Michael Snyder THE ECONOMIC COLLAPSE BLOG
Is the stock market bubble about to burst? I know that I have been touching on this theme over and over and over again in recent weeks, but I can’t help it. Red flags are popping up all over the place, and the last time so many respected experts were warning about an imminent stock market crash was just before the last major financial crisis. Of course nobody can guarantee that global central banks won’t find a way to prolong this bubble just a little bit longer, but at this point they are all removing the artificial support from the markets in coordinated fashion. Without that artificial support, it is inevitable that financial markets will experience a correction, and the only real question is what the exact timing will be. For example, Bank of America’s Michael Hartnett originally thought that the coming correction would come a bit sooner, but now he is warning of a “flash crash” during the first half of 2018…
That certainly sounds quite ominous.
Hartnett is making the same point that I have made repeatedly in recent weeks. As the central banks withdraw the artificial support that has been propping up the markets ever since the last financial crisis, we will see if the markets can really maintain these absolutely ridiculous price levels on their own. And we are not just talking about stock prices either. In fact, Bill Blain believes that the coming crash will actually originate in the bond market…
Asset prices of all classes have been pushed to absolutely absurd levels by the central banks. If it wasn’t for central bank manipulation, stock prices would have never gotten this high, and the bond market would have never been pushed to such irrational extremes. And it isn’t just the Federal Reserve that has been intervening directly in U.S. markets. For example, did you know that the Swiss National Bank is now the eighth largest public holder of U.S. stocks in the entire world? According to John Mauldin, the Swiss central bank has poured 17 billion dollars into our stock market so far this year, and overall they now own approximately 80 billion dollars worth of our stocks…
They have made these purchases with money that they have literally created out of thin air. If that sounds like “cheating” to you, that is because that is exactly what it is. How in the world can stock prices possibly fall when global central banks are creating colossal mountains of money out of thin air and are using that money to buy stocks? The central banks created this ridiculous stock market bubble, and they can also burst the bubble by pulling back on the level of artificial support, and that is precisely what we see happening right now. So don’t buy into the hype. All that really matters is what the central banks choose to do, and if they wanted to continue to pump enormous amounts of money into the financial markets they could continue to pump up this absurd financial bubble that we are currently witnessing. But at the moment they appear to be pulling back, and that makes a very “interesting” 2018 for the financial markets much more likely. Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com. |
Posted: 20 Nov 2017 05:23 PM PST
![]() Once upon a time preppers would hoard gold and silver in anticipation of the meltdown of society, but now Bitcoin is becoming the alternative currency of choice for many in the prepping community. On Monday, Bitcoin hit an all-time record high as it surged past $8,200, and it has now gone up nearly 50 percent in just the last eight days. As I have admitted previously, one of my great regrets is not investing in Bitcoin when it first started, because we have never seen a meteoric rise quite like this. Bitcoin hit the $5,000 mark for the very first time just over a month ago, it is up more than 700 percentso far this year, and it is up almost 40,000 percent over the past five years. At this point Bitcoin has a market cap of over 130 billion dollars, and many believe that this is just the beginning. At one time many preppers were quite skeptical of cryptocurrencies such as Bitcoin, but now that is starting to change in a major way. The following comes from a Bloomberg article entitled “These Doomsday Preppers Are Starting to Switch From Gold to Bitcoin”…
At the end of the day, cryptocurrencies only have value because people believe that they have value. If the global financial system completely collapses, will there still be demand for Bitcoin and other cryptocurrencies? And will they be accepted for food, medicine and other basic emergency supplies when everything falls apart?
And there is a very real possibility that the marketplace could soon become absolutely saturated with “cryptocurrencies”. At this point it seems like a new crytpocurrency is being started on almost a daily basis. Here is more from CNN…
For now, we will probably continue to see wild up and down swings in the price of Bitcoin. Those that were able to buy low and are able to sell high will make an extraordinary amount of money, but those that hold on to the bitter end may ultimately lose everything.
Of course up to this point those with the last laugh have been those that invested in Bitcoin despite what the skeptics were saying. Countless numbers of “Bitcoin millionaires” have already been created, and many believe that this is just the start of the cryptocurrency revolution. But will this revolution end up resulting in heartbreak for those that don’t get out before the bubble bursts? Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com. |