Stock Market Crash Has Begun! It Will Trigger Economic Collapse In 2019

Will we look back on the month of July as the beginning of the imminent stock market crash? During the first half of 2019, stock prices soared to record high after record high even though we just kept getting one number after another that indicated that a new economic collapse was starting.  Because of the disappointing performance of the U.S. economy, it was believed that we would see a rate cut from the Federal Reserve on Wednesday, and that is precisely what happened.  But instead of rejoicing, investors started to panic a bit, and the Dow Jones Industrial Average ended the day down 333 points.  We will get into why that happened in just a little bit.  But without a doubt it seems quite odd that the Fed’s very first rate cut since December 2008 actually caused stocks to crashing down.  On a historical basis, interest rates are already very low right now, and so this greatly limits what the Fed will be able to do once the next economic collapse officially begins.  Of course most investors are not concerned with such considerations.  What they really want is for interest rates to be pushed all the way to the floor as quickly as possible, and so they were quite disappointed with what they heard from Fed Chairman Jay Powell on Wednesday.

Fed Chairman Jay Powell told the press that this rate cut was just “a mid-cycle adjustment to policy” and that he didn’t anticipate that this was “the beginning of a lengthy cutting cycle”. Many on Wall Street had been anticipating that the Federal Reserve would keep on cutting rates after this rate cut, but as I detailed the other day, the only way that would make sense is if we were plunging into a recession.

President Trump was not thrilled by what happened on Wednesday.  He was hoping that this would be the beginning of a series of rate cuts, because the lower interest rates go the better chance he has of being re-elected. Trump once again ripped into Jay Powell and the Federal Reserve.

In fact, one Morgan Stanley analyst had already been warning about the next economic collapse “is likely to be sharper and deeper than one might expect”: “if equity markets fail one more time at our key resistance point, we believe the reversal is likely to be sharper and deeper than one might expect, even if the earnings recession is more benign than we expect.“

And Egon von Greyerz is even more pessimistic about the stock market crash that is right around the corner: “Many on Wall Street had been anticipating that the Federal Reserve would keep on cutting rates after this rate cut, but as I detailed the other day, the only way that would make sense is if we were plunging into a financial collapse. The autumn of 2019 will see a major shift in sentiment as markets turn from a secular bull to a secular bear. We are likely to see major crashes in many global stock markets. Virtually no one is prepared for this so there will be both panic and despair.”

Of course the truth is that we have never been more perfectly primed for a stock market crash than we are right now, and things are lining up ideally for the sort of nightmare scenario that I have been warning about.

It is just a matter of time before all of our economic and financial bubbles burst, and when they do the pain is going to be off the charts.  I think that the CEO of Overstock.com recently made this point very well: “I think it will be bad,” he said. “To be honest, I think that ’08 was the hors d’oeuvres course,” he said according to Fortune.

Byrne, a longtime cryptocurrency enthusiast, compared what he anticipates will happen to the economy to what might happen to a bridge overloaded with too many vehicles. “It’s a little bit like asking me there’s a bridge that was designed to hold 20 cars passing over it at a time and there’s now 100 going over it,” Byrne said. “When’s it going to break? When’s it going to collapse? That’s really your answer.”
“I’m kind of shocked it’s gone on this long,” Byrne continued. “I think that we have deep, deep, structural, architectonic level problems in our economy that will surface.”

As Byrne aptly pointed out, the big surprise is that it has taken this long for everything to collapse. We had far, far more time than we deserved to try to get things turned around, but we never actually fixed any of our long-term economic and financial problems.

Now the next economic collapse is at our door, and I believe that the remainder of this year will turn out to be quite “interesting” indeed.

Script written by Michael Snyder, author of: www.theeconomiccollapseblog.com

Music:
CO.AG Music

For more economic collapse news visit our website: www.epiceconomist.com

Stock market crash,market crash,Economic collapse,Morgan Stanley,economy,economic performance,stocks,stock market,economic crash,financial,financial marketplace,financial markets,market economy,investing,jobs,lending,loans,markets,money,mortgage,mortgages,panic,recession,stock bubble,stock market bubble,stock market collapse,stock prices,stock market volatility,u.s. stocks,Wall Street,financial collapse,