RED ALERT: Panic Hits Wall Street As ‘Carnage’ Stuns The Markets… Is Another Black Monday Coming?

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By Susan Duclos – All News PipeLine

In the video below Peter Schiff, an American financial analyst, stockbroker, author and CEO and chief global strategist of Euro Pacific Capital Inc., explains what we saw this past week as the financial markets suffered their worst performance in four years, with massive losses in what the experts call a “market correction,” where Dow Jones lost nearly 1000 points.

Schiff sees this market tailspin as being reminiscent of the “Black Monday” back in 1987 where there was a huge drop on a Friday, followed by another massive decline the following Monday.

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Via Wiki:

In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin.

The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%). In Australia and New Zealand, the 1987 crash is also referred to as “Black Tuesday” because of the time zone difference.

The terms Black Monday and Black Tuesday are also respectively applied to October 28 and October 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929.

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Experts have been warning this day was coming while the MSM and the “official” spin has been telling the general populace that the country was seeing a “recovery,” which was nothing more than an illusion as the central bankers and the Fed manipulated the system to appear as if the economy was recovering.

Michael Snyder at The Economic Collapse website points out that “This is the first time that the Dow has dropped by more than 300 points on two consecutive days since November 2008, and we all remember what was happening back then.”

Via Zero Hedge, titled “Carnage” we see the following bullet points, succinctly encompassing the disaster that just happened; China’s worst week since July – closes at 5 month lows;  Global Stocks’ worst week since May 2012;  US Stocks’ worst week in 4 years;  VIX’s biggest weekly rise ever;  Crude’s longest losing streak in 29 years;  Gold’s best week since January;  5Y TSY Yield’s biggest absolute drop in 2 years.

Brett Arends at Market Watch, generally considered very level-headed warns “I don’t mean to be alarmist or to induce panic, but someone needs to tell the public that there is a plausible scenario in which the U.S. stock market now collapses by another 70% until the Dow Jones Industrial Average falls to about 5,000.”

Money Morning decribes the chaos:

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We received one of the biggest stock market crash indicators we’ve seen in 2015 today (Friday) when Bank of America Merrill Lynch reported that U.S. equity outflows hit a 15-week high this week.

According to the bank, more than $8.3 billion fled stock funds in the last week as global economic concerns intensified.
A stock market crash in China and continued Greek bailout concerns have sent global markets tanking this week.

The Dow Jones Industrial Average has fallen more than 876 points (5%) since Tuesday’s opening. The Shanghai Composite Index is down 12.2% since Tuesday and nearly 32% since June. Japan’s Nikkei 225 Index has also fallen 5.8% since Tuesday.

According to the BofA report, funds that focus on U.S. stocks saw outflows of more than $6.6 billion this week. That brings the 2015 total to a whopping $120 billion.

But that’s not the only area that was hit hard. Money is pouring out ofemerging markets too. More than $6 billion fled emerging market equity funds for the week ending Aug. 19. That was the 7th consecutive week of outflows for emerging market funds.

Most investors are taking their money and heading into safe-haven investments like precious metals. Precious metal funds saw an inflow of roughly $18 million for the week.

Bonds were also a popular investment. According to the report, more than $2.5 billion headed into funds specializing in Treasuries and government bonds.

The rate that money is fleeing the markets has many worrying about a stock market correction – or even worse, a stock market crash.

Schiff reiterates what we saw on August 17, 2015 from the WSJ, which is the “U.S. lacks ammo for the next economic crisis,” because Interest rates are near zero, and fiscal stimulus plans could be hampered by high levels of government debt and the prospect of growing budget deficits to cover entitlement spending on retired baby boomers.”

Below Peter Schiff explains what to expect going forward.

Dean James III% AMERICA’S FREEDOM FIGHTERS

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