© The Economic Collpase Blog
In the financial world, the month of October is synonymous with stock market crashes. So will a massive stock market crash happen this year? You never know. The truth is that our financial system is even more vulnerable than it was back in 2008, and financial experts such as Doug Short, Peter Schiff, Robert Wiedemer and Harry Dent are all warning that the next crash is rapidly approaching.
We are living in the greatest debt bubble in the history of the world and Wall Street has been transformed into a giant casino that is based on a massive web of debt, risk and leverage. When that web breaks we are going to see a stock market crash that is going to make 2008 look like a Sunday picnic.
Yes, the Federal Reserve has tried to prevent any problems from erupting in the financial markets by initiating
another round of quantitative easing, but 40 billion dollars a month will not be nearly enough to stop the massive collapse that is coming. This will be explained in detail toward the end of the article. Hopefully we will get through October (and the rest of this year) without seeing a stock market collapse, but without a doubt one is coming at some point. Those on the wrong end of the coming crash are going to be absolutely wiped out.
A lot of people focus on the month of October because of the history of stock market crashes in this month. This history was detailed in a recent
USA Today article....
When it comes to wealth suddenly disappearing, October can be diabolically frightful. The stock market crash of 1929 that led to the Great Depression occurred in October. So did the 22.6% plunge suffered by the Dow Jones industrial average in 1987 on "Black Monday."
The scariest 19-day span during the 2008 financial crisis also went down in October, when the Dow plunged 2,675 points after investors fearing a financial collapse went on a panic-driven stock-selling spree that resulted in five of the 10 biggest daily point drops in the iconic Dow's 123-year history.
So what will we see this year?
Only time will tell.
If a stock market crash does not happen this month or by the end of this year, that does not mean that the experts that are predicting a stock market crash are wrong.
It just means that they were early.
As I have said so many times, there are thousands upon thousands of moving parts in the global financial system. So that makes it nearly impossible to predict the timing of events with perfect precision. Financial conditions are constantly shifting and changing.
But without a doubt another major financial collapse similar to what happened back in 2008 (or even worse) is on the way. Let's take a look at some of the financial experts that are predicting really bad things for our financial markets in the months ahead....
Doug ShortAccording to Doug Short, the vice president of research at Advisor Perspectives, the stock market is somewhere between 33% and 51% overvalued at this point. In a
recent article he offered the following evidence to support his position....
โ The Crestmont Research P/E Ratio (more)
โ The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more)
โ The Q Ratio, which is the total price of the market divided by its replacement cost (more)
โ The relationship of the S&P Composite price to a regression trendline (more)
Comment: For a better idea of what is really going on in Syria please read:
Sott Focus: Syria's Bloody CIA Revolution - A Distraction? by Joe Quinn
Sott Focus: One Man's Suicide Bomber - National Security Building Bomb in Damascus and Bourgas Bus Bomb by Joe Quinn
Sott Focus: Reign of Fire: Meteorites, Wildfires, Planetary Chaos and the Sixth Extinction by Joe Quinn and Niall Bradley
For additional information read:
German intelligence working to bring 'al Qaeda' barbarians to power in Syria
Mossad, Blackwater, CIA Led Operations in Homs
Wikileaks: US-led NATO Troops Operate Inside Syria
Meanwhile, back in Istanbul...