Michael Snyder, on January 5th, 2015
“On Monday, the price of oil fell below $50 for the first time since April 2009, and the Dow dropped 331 points. Meanwhile, the stock market declines over in Europe were even larger on a percentage basis, and the euro sank to a fresh nine year low on concerns that the anti-austerity Syriza party will be victorious in the upcoming election in Greece. These are precisely the kinds of things that we would expect to see happen if a global financial crash was coming in 2015. Just prior to the financial crisis of 2008, the price of oil collapsed, prices for industrial commodities got crushed and the U.S. dollar soared relative to other currencies. All of those things are happening again. And yet somehow many analysts are still convinced that things will be different this time. And I agree that things will indeed be “different” this time. When this crisis fully erupts, it will make 2008 look like a Sunday picnic.
“Another thing that usually happens when financial markets begin to unravel is that they get really choppy. There are big ups and big downs, and that is exactly what we have witnessed since October. So don’t expect the markets just to go in one direction. … For example, did you know that the three largest single day stock market advances in history were right in the middle of the financial crash of 2008? … Don’t get fooled by the volatility. Choppy markets are almost always a sign of big trouble ahead. …
“In order to avoid a major financial crisis in the near future, we desperately need the price of oil to rebound in a substantial way. Unfortunately, it does not look like that is going to happen any time soon. There is just way too much oil being produced right now. …
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