Is Financial Instability The New Normal?
The Economic Collapse
Sept 23, 2011
The financial world is officially going crazy. Can you believe what is going on out there right now? Financial markets have been jumping up and down like crazy for months and this is creating a lot of fear. Other than during the financial crisis of 2008, in the post-World War II era have we ever experienced as much financial instability as we are seeing right now? Should we just accept that massive financial instability is going to be part of “the new normal” in the financial world? The wild swings that we are witnessing in the global financial marketplace are making a whole lot of people very nervous right at the moment. When markets go up, they tend to do it slowly and steadily. When markets go down, a lot of times it can happen very rapidly. Also, as I have mentioned before, more major stock market crashes happen during the fall than during any other time of the year. The last major financial crisis happened during the fall of 2008, and things are starting to look a little bit more like 2008 with each passing day. The last thing the global economy needs right now is another major financial meltdown, but that may be exactly what we are about to get.
The Dow got absolutely hammered once again on Thursday. It was downalmost 400 points, and it has lost a total of 674.83 points over the last two days combined.
In case you are wondering, yes, that is a very big deal.
It represents the largest two day decline that we have seen since November 2008, and at this point the Dow is on pace to have its worst week since September 2008.
Over the past two days, more than 900 billion dollars of “paper wealth” has disappeared.
Hopefully you did not share in that pain.