Shemitah sa
Metia What Happened?
A lot of people were expecting something “big” to
happen on September 14th and were disappointed when nothing
happened. Right now, stock market wealth is being wiped
out all over the planet, and none of the largest global
economies have been exempt from this. The following is a
summary of what we have seen in recent days…
#1 The United States – The Dow Jones Industrial Average is
down more than 2000 points since the peak of the market.
Last month we saw stocks decline by more than 500 points
on consecutive trading days for the first time ever, and
there has not been this much turmoil in U.S. markets since the
fall of 2008.
#2 China – The Shanghai Composite Index has plummeted
nearly 40 percent since hitting a peak earlier this year.
The Chinese economy is steadily slowing down, and we just
learned that China’s manufacturing index has hit a 78 month
low.
#3 Japan – The Nikkei has experienced extremely violent
moves recently, and it is now down more than 3000 points from
the peak that was hit earlier in 2015. The Japanese
economy and the Japanese financial system are both basket
cases at this point, and it isn’t going to take much to push
Japan into a full-blown financial collapse.
#4 Germany – Almost one-fourth of the value of German
stocks has already been wiped out, and this crash threatens to
get much worse. The Volkswagen emissions scandal is
making headlines all over the globe, and don’t forget to
watch for massive trouble at Germany’s biggest bank.
#5 The United Kingdom – British stocks are down about 16
percent from the peak of the market, and the UK economy is
definitely on shaky ground.
#6 France – French stocks have declined nearly 18 percent,
and it has become exceedingly apparent that France is on the
exact same path that Greece has already gone down.
#7 Brazil – Brazil is the epicenter of the South
American financial crisis of 2015. Stocks in Brazil have
plunged more than 12,000 points since the peak, and the nation
has already officially entered a new recession.
#8 Italy – Watch Italy. Italian stocks are already
down 15 percent, and look for the Italian economy to make very
big headlines in the months ahead.
#9 India – Stocks in India have now dropped close to 4000
points, and analysts are deeply concerned about this major
exporting nation as global trade continues to contract.
#10 Russia – Even though the price of oil has crashed,
Russia is actually doing better than almost everyone else on
this list. Russian stocks have fallen by about 10 percent
so far, and if the price of oil stays this low the Russian
financial system will continue to suffer.
And this is just the beginning. We haven’t
even gotten to the great derivatives crisis that is
coming yet. All of these things are going to take
time to fully unfold.
What we are witnessing now is the continuation of a cycle of
financial downturns that has happened every seven years.
The following is a summary of how this cycle has played
out over the past 50 years…
•
It started in 1966 with a 20 percent stock market crash.
•
Seven years later, the market lost another 45 percent
(1973-74).
•
Seven years later was the beginning of the “hard recession”
(1980).
•
Seven years later was the Black Monday crash of 1987.
•
Seven years later was the bond market crash of 1994.
•
Seven years later was 9/11 and the 2001 tech bubble
collapse.
•
Seven years later was the 2008 global financial collapse.
•
2015: What’s next?