Epic Economist
A nightmarish financial crisis that shook the entire globe happened in September 2008. Today, conditions are set for such an event to happen again. On Friday, the Dow Jones faced a wipeout of stunning 1,008 points as panic swept through Wall Street right after Jerome Powell’s dramatic speech in Wyoming. The Fed Chair made it crystal clear that interest rates will continue to rise for the foreseeable future, and that prospect has deeply alarmed investors. For months now, some very vocal influencers in the financial community had been forecasting that interest rate hikes would soon come to an end, but that doesn’t seem to be the case anymore at all. Powel not only dashed these hopes but also warned that more pain is ahead. As markets open tomorrow, Wall Street is going to finally face reality, and things are likely to get messy.
Last Friday, the Dow Jones faced a remarkable drop that had investors sitting on the edge of their seats. After dropping 1,008 points, some very disturbing similarities to the 2008 crash and the following financial crisis immediately stood out for some of the most experienced market players. Many other past parallels of times when a stock market crash occurred have seemed to have been a sign of worse things to come. For instance, on September 29th, 2008 the entire world was completely shocked when the Dow Jones Industrial Average fell 777 points. That was a new all-time record back then, and fear spread through Wall Street like wildfire. The Dow’s sudden plunge told the story of the market’s despair.
Investors were struck by a sentiment of hopelessness, and each and every sector of financial markets were simultaneously slumping, adding to their woes. The entire globe faced some of the most difficult periods in the history of financial markets, and confidence disappeared from Wall Street. The meltdown led to major repercussions in several nations, and the U.S. economy fell into what would become known as “the Great Recession”.
We’re actually nearing the 14th anniversary of the housing bubble burst of 2008. Now, we’re seeing a similar catastrophe emerging on the horizon. Another bubble has burst, the housing market is crashing again, and this downturn could turn out to be the most painful of them all. Experts argue that if the Federal Reserve stopped raising interest rates so keenly, we could actually have a shot at avoiding a disorderly collapse of the real estate market.
However, that’s quite unlikely at this point. On Friday, Jerome Powell explicitly said that more rate hikes were coming and that we all should brace for more pain in the coming months. In a keynote speech at the Federal Reserve’s annual Jackson Hole Economic Symposium, the Fed Chair said that the path to reducing inflation would not be quick or easy, adding that the task, “requires using our tools forcefully to bring demand and supply into better balance.”
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” he said. Powell continued arguing that “these are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain,” referencing the lessons officials learned from studying the Fed’s struggle to combat high inflation in the 1970s and 1980s. Powell and his associates at the Fed are taking actions that threaten to greatly destabilize financial markets. But Wall Street isn’t prepared for an interest rate shock, and soon, everyone will realize that officials are making a tragic policy error.
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The coming stock market crash is going to be on an unprecedented level of biblical proportions beyond anybody's imagination.
Sorry the FED isn't making a strategic error but correctlng their strategic error of lowering interests way too low 😀
Yes. World Economic Crisis is coming. Thanks US. 😭🤣🤣✌️✌️
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Are you serious? What's coming will make 2008 look like a tiny speed bump and by comparison the Great Depression will seem insignificant.
Brilliant analysis of the different things to watch for on the different time frames. Good to see everyone feels the same way when they lose money, everyone thinks they could do this or that with that money which is as good as gone, instead people refuse to seek help from professionals, Edward Joseph James set to be different and unique, I made about $470k already from his day tradng, all i did was to copy his daily signals, am done having heart breaks hodling and trading myself lol.
This is an amazing video and i enjoyed every bit of it. And i'm also excited to share my investment experience so far this year. I believe it will help a lot of people here who are confused on how to startup theirs and be productive for the year.
America and UK began legalise pedophilia ) Proof here https://www.youtube.com/shorts/XsjCFrvjess
Up and down, manipulate and control, billions at stake, the computers rule, if you sell, your loss. Hold, it will climb again, always has.
America 🇺🇸 is no more, look around you, sad, sad to say, we will all feel the wrath of these evil ppl, already are! UNFORTUNATELY…..
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
If you speed up his voice he sounds like a goat so this must be true 🤣🤣🤣🤣😂 omg you should try it classic made my day
Despite the economic downturn,I'm so happy. I have been earning $ 60,000 returns from my $7,000 investment every 13 day's.
Thank you Sir, A Gift from the sky,,, Buy Buy Buy Physical, Any fiat left Repeat, They cant print Silver /Gold
I am expecting a 100 basis point increase in the federal interest rate in September.
Yes Sir, you are Spot-On-Right, ty for sharing info, always learn something more God Bless 🙏✝️
Great promote a new crpto currency. Looked at the comments kind of dumb.
The am of the fed is 12% interest. Calculate what that means for debt.
Before investing anywhere pay down debt. Specifically term loan and mortgages. What you can lock it in now.
Was at the bank in June. We have a fund set up for my son's university. It's rate shot up to 4%. That's 4% return. The banks were comfortable with 6% in June.
I've heard a few analysts calculate the effective inflation at 10%. That sounds like an understatement listening to this channel. You'd need to overshoot current inflation to stop the steady growth of inflation.
1st thing pay down debts. 2nd get storable non perishing foods. 3rd create a plan of what goes first and what you hold out on.
Create a plan like do cellphones go before internet. Do we keep electricity at any cost.
My word the plan to through things into crypro currency is to switch currency. Lets suppose you do. Your cell phones, your internet, your mortgage, most food, everything you do is in American dollars. All those big ticket items can't be paid in crypto dollars. Look at your budget.
If your keeping your house put everything in to paying it down. Put even more effort in paying down shorr term debts. If your bugging out than have no car debt. Sell off valuable cars than pay off anything owing. Drive old reliable beater Honda's and Toyota's if you find a good one cheap.
Once debt free bug out in safety. Buy your crypto. Just check now what you spend most American dollars on, the biggest ticket items. Know you have to earn that to keep them. The other stuff might be buyable in crypto.
Panic buying typically buys you crap cause you aren't thinking in a panic, at least not straight. Feds are warning you its time to reduce debt. Either by your oprion or by force. Force means you won't afford the new payments and you get foreclosed.
Take care guys. Its totally not the first time for this. Don't panic
Each month u say crash , soon you will get it right and say you got it right .lol
Great <info and insight as always. Thanks a ton for this deep dive. To me there is another factor that wasn't explored: The great stock market casino rolls on. Anyone who thinks the Fed is going to take their foot off the gas is crazy. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. Rates have adjusted a lot higher in recent weeks, but they can still grind higher from here on strong data. If the Fed gets the policy rate towards 3.5% or 3.75%, it will drag the Treasury curve along for the ride. Bitcoin is the most important thing most people have never heard of. Your entire outlook on life will be utterly transformed by what you learn. Many investors will be kicking themselves for years to come that they didn’t look into it sooner. <Macro factors are demanding further downside, as the impact of inflation and geopolitical strife is clearly felt on equities markets. I make a lot more money off bitcoin because I am a retail trader, I tradde not just hold and wait for the price to skyrocket, not anymore you have to trade your assets to make more profits. Most people want to profit off the market but don't want to put in work, working with a professional like Mr Thomas takes the stress of your shoulders all you have to do is work with is simplified strategy and accurate trad signals and profit is guaranteed. I've made over 13' btc tradn using Thomas Fuller strategy a professional who have a reputable background and understanding of the market, I came across him in TradingView where he share his charts <There might be so many investments out there but if profits must be considered, which is actually the sole aim of every Investment then I’ll advice you to go into crypto tradiing because it has higher profit returns. You can reach out to Mr Thomas on <ͲeIєɠɾαm his personal handle is @thomasfullerofficial..