For the last two months, we have been going through a global health problem and an economic crisis at the same time. many people alive today have never seen anything like this because right now many economies are coming to an halt and what is materializing in our eyes will be bigger than the great depression. This will end up being the most severe economic collapse in the history of the world. The stock market is already crashing at a pace that has not been seen in recent years. This has been so severe to a point where trading had to be halted several times in the last two weeks. The real estate industry is also at the verge of collapsing and this time it the crash will be bigger than what we had back in the 2008 financial meltdown. At the same time millions of Americans are losing their jobs and when all this is factored into the current economic turmoil, we have a perfect economic bomb that is about to blow up in our faces. This is just the beginning of another great depression!
For the last two weeks the US stock market has been tanking all across the board. It looks as if a major stock market crash is upon the United States. The Dow Jones Industrial Average has been swinging approximately for 1,000 points in multiple days within the last two weeks. The stock market traders have been panicking because the market has just turned out to be a rollercoaster that they have not seen for many years. The market has been very volatile with up to 4.5 percent movements in a day and all investors are unaware of what will happen next. There is a lot of panic as investors fear that the market will continue tanking because economic indicators are indicating that a big stock market crash will happen. The recent interest rate cut by the Federal Reserve has not done any good to the market.
The US economy has been slowing down and economists are predicting that a major economic collapse is coming. In a recent interview, Guggenheim’s Global CIO Scott Minerd said that the cognitive dissonance in the stock market is stunning as reflected by the ever rising prices and credit spreads. He expressed that this is not a buy the dip market but don’t try to catch a falling knife markets because prices have been plummeting for weeks. The stock market collapse has already begun!
This week a lot has happened in the global financial markets and the global stock markets have dropped significantly within a few days and the question that most people are asking is whether this drop will culminate in a global stock market collapse.
The Federal Reserve has been targeting the stock market as a way of boosting economic growth. They have been pumping billions of dollars into the stock market for many years and now, the prices are inflated. The current global panic as a result of the outbreak has triggered stock selling and this is what is causing the stocks prices to tumble every single day and in the process wealth worth billions of dollars is being lost.