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BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two

Discussion in 'Historic Market Crashes' started by Ahillock, Aug 25, 2015.



  1. Ahillock

    Ahillock A nobody Mother Lode

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    BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days
    By Michael Snyder, on August 24th, 2015

    On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday. In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow. Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent). On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that “a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.

    Our world has not seen a day quite like Monday in a very, very long time. Let’s start our discussion where the carnage began…

    Asian Markets

    For weeks, the Chinese government has been taking unprecedented steps to try to stop Chinese stocks from crashing, but nothing has worked. As most Americans slept on Sunday night, the markets in China absolutely imploded…

    Things would have been even worse in China if trading had not been stopped in most stocks. Trading was suspended for an astounding 2,200 stocks once they hit their 10 percent decline limits.

    Overall, the Shanghai Composite Index is now down close to 40 percent from the peak of the market, and the truth is that Chinese stocks are still massively overvalued when compared to the rest of the world.

    That means that they could very easily fall a lot farther.

    European Markets

    The selling momentum in Asia carried over into Europe once the European markets opened. On a percentage basis, all of the major indexes on the continent declined even more than the Dow did…

    U.S. Markets

    Even before U.S. markets opened on Monday morning, the New York Stock Exchange was already warning that trading would be halted if things got too far out hand, and it almost happened…

    There were other circuit breakers in place for later in the day if too much panic selling ensued, but fortunately none of those were triggered either. Here is more from Bloomberg…

    Unfortunately, U.S. stock prices are still nowhere near where they should be. If they were to actually reflect economic reality, they would have to fall a lot, lot lower.

    For example, there is usually a very strong correlation between commodity prices and the S&P 500, but in recent times we have seen a very large divergence take place. Just check out the chart in this article. At this point the S&P 500 would have to fall another 30 to 40 percent or commodities would have to rise 30 or 40 percent in order to close the gap. I think that the following bit of commentary sums up where we are quite nicely…

    And commodities were absolutely hammered once again on Monday.

    For instance, the price of U.S. oil actually fell below 38 dollars a barrel at one point.

    What we are watching unfold is incredible.

    Of course the mainstream media is bringing on lots of clueless experts that are talking about what a wonderful “buying opportunity” this is. Even though those of us that saw this coming have been giving a detailed play by play account of the unfolding crisis for months, the talking heads on television still seem as oblivious as ever.

    What is happening right now just doesn’t seem to make any sense to the “experts” that most people listen to. I love this headline from an article that Business Insider posted on Monday: “None of the theories for the Black Monday market crash add up“. Yes, if you are willingly blind to the long-term economic and financial trends which are destroying us, I guess these market crashes wouldn’t make sense.

    And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

    But don’t be fooled by that. Just because stocks go up on any particular day does not mean that everything is fine. We are in the midst of a financial meltdown that is truly global in scope. This is going to take time to fully play out, and there will be good days and there will be bad days. The three largest single day increases for the Dow were right in the middle of the financial crisis of 2008. So one very good day for stocks is not going to change the long-term analysis one bit.

    It isn’t complicated. Those that follow my writing regularly know that I have repeatedly explained how things were setting up in textbook fashion for another global financial crisis, and now one is unfolding right in front of our eyes.

    At this point, everyone should be able to very clearly see what is happening, and yet most are still blind.

    Why is that?

    http://theeconomiccollapseblog.com/...-more-than-500-points-on-two-consecutive-days
     
    solarion and searcher like this.
  2. Canadian-guerilla

    Canadian-guerilla hunter-gatherer Gold Chaser

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    trading was halted 1200 times Monday

    http://money.cnn.com/2015/08/24/inv...elloff-circuit-breakers-1200-times/index.html




    i don't think the banksters thought it would get that bad . . .
     
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  3. Cornelius

    Cornelius Gold Member Gold Chaser

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Maybe it is just that the PPT was on an extended weekend. Ever think of that?
     
  4. earplugs

    earplugs Gold Chaser Platinum Bling

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  5. Canadian-guerilla

    Canadian-guerilla hunter-gatherer Gold Chaser

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    extended weekend ?

    after what happened on Thursday/Friday and sunday night dow futures

    no

    what happened monday was a surprise even to the banksters
     
  6. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Maybe it can now drop 200 points a day, right?

    Oops they did that too...

    We's in a world of hurt...

    Dang DOGS oops DOW!

    Tomorrow will be exciting...
     
  7. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Every day is exciting in this world.
     
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  8. Eyebone

    Eyebone Midas Member Midas Member

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    It's a blip.
     
  9. the_shootist

    the_shootist The war is here on our doorstep! Midas Member Site Supporter ++

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Precisely!!!
     
  10. latemetal

    latemetal Platinum Bling Platinum Bling

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Dollar cost average, and buy the dips...:deal:
     
  11. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    This BIG thing may start a tad earlier than NEXT September or October.

    By big I mean REALLY BIG...

    But it may be a blip...

    But it's really scary for them the "PPT"
    (paid not to fail the markets - like the "FED" was started not to lose 1% much less than their reported 98% of the US dollar value, sadly);

    BUT - the PPT STILL lost around 2,000 points just in the DOW in five days! -

    Imagine shorting this thing and the result is the MILLIONS $ money you MADE is not worth a hill of beans...?

    EVERYTHING is Frozen and all the banks and markets are closed...?
     
  12. Ahillock

    Ahillock A nobody Mother Lode

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    What If The "Crash" Is as Rigged as Everything Else?
    August 26, 2015

    Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

    There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who's to say this crash isn't rigged? A few things about this "crash" (11% decline from all time highs now qualifies as a "crash") don't pass the sniff test.

    Exhibit 1: VIX volatility Index soars to "the world is ending" levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more--double the current drop.

    When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that's a crash.

    [​IMG]

    Exhibit 2: The VIX soared and the market cratered at the end of options expiration week (OEX), maximizing pain for the majority of punters. Generally speaking, OEX weeks are up. The exceptions are out of the blue lightning bolts such as the collapse of a major investment bank.

    Was a modest devaluation in China's yuan really that unexpected, given the yuan's peg to the U.S. dollar which has risen 20% in the past year? Sorry, that doesn't pass the sniff test.

    [​IMG]

    Exhibit 3: When the VIX spiked above 30 in October 2014, signaling panic, the Federal Reserve unleashed the Bullard Put, i.e. the Fed's willingness to unleash stimulus in the form of QE 4. Markets reversed sharply and the VIX collapsed.

    Now the VIX tops 50 and the Federal Reserve issues an absurd statement that it doesn't respond to equity markets. Well then what was the Bullard Put in October, 2014? Mere coincidence? Sorry, that doesn't pass the sniff test.

    Why would "somebody" engineer a mini-crash and send volatility to "the world is ending" levels? There are a couple of possibilities.

    1. The Shock Doctrine. Naomi Klein's landmark study of how manufactured crises are used to justify further consolidation of power, The Shock Doctrine: The Rise of Disaster Capitalism, provides a blueprint for how financial crises set the stage for policies that extend the power of central and private banks and various state-private sector players.

    A soaring VIX and sudden crash certainly softens up the system for the next policy squeeze.

    2. A "crash" engineered to set up a buying opportunity for insiders. When easy gains get scarce, what better way to skim a quick 10% than engineer a "crash," scoop up shares dumped by panicked punters and momo-following HFT bots spooked by "the world is ending" VIX spike, and then reverse the "crash" with another round of happy talk?

    3. Settling conflicts within the Deep State. I have covered the Deep State for years, in a variety of contexts--for example:

    Is the Deep State Fracturing into Disunity? (March 14, 2014)

    The Dollar and the Deep State (February 24, 2014)

    Surplus Repression and the Self-Defeating Deep State (May 26, 2015)

    Without going into details that deserve a separate essay, we can speculate that key power centers with the Deep State have profoundly different views about Imperial priorities.

    One nexus of power engineers a trumped-up financial crisis (i.e. a convenient "crash") to force the hand of opposing power centers. As I have speculated here before, the rising U.S. dollar is anathema to Wall Street and its apparatchiks, while a rising USD is the cat's meow to those with a longer and more strategic view of dollar hegemony.

    Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.



    http://www.oftwominds.com/blogaug15/rigged-crash8-15.html
     
  13. <SLV>

    <SLV> Gold Member Gold Chaser Site Supporter

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    Re: BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On

    Points mean nothing. Percentages are necessary for historical comparison.
     
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