Stock Market Crash What to Expect

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First, a crash is not a guarantee. The market will suffer a catastrophic loss regardless. The question is, how long will it take to get to the bottom?

As long as the political structure stays in place, a crash will not occur. Remember, this particular market is driven by a political agenda. What good is political power? Political power is the world’s best way to enrich oneself. As long as the political power structure says intact central banks are obligated to support stock prices. Buying enough stock to keep the market from crashing is an easy task. Central banks will not stop supporting asset prices on their own.

As I am writing this, the political structure of the world is unraveling. So, the chances of an actual crash are increasing.

Odds are it will be telegraphed before the U.S. open. If you are a retail customer, the trading platform you are using will not be available for at least most of the day. This won’t be because of too much online traffic. It will be by design to keep retail stock holdings from having a chance to hit the market. Financial sites will operate inefficiently or not at all so as to slow down the flow of information. The averages will be reported just like they are on any other day.

There are a few folks who hold bearish positions that will be profitable during a decline. Profits will accumulate rapidly. Chances are that the rules will change. Profitable bear ETF trades will probably be undone. Windfall profits on downside trades will be disallowed. Banks will fail. Brokerage firms will fail also. It will be difficult for traders to get their hands on money that is rightfully theirs. I have said that stimulus is theft many times. It stands to reason that a 40+ year old theft initiative will be polished off with one last astronomical theft.

Will anyone go to jail? Certainly somebody will but rounding up all of the stimulus thieves will be harder to do than it was to round up all of the guilty NAZIs after WWII. It is not hard to notice that laws are now enforced according to political criteria and do not automatically apply to everyone. Crime and government have completely merged. There really is no one in Washington who has an incentive to enforce laws. The public knows all of this but doesn’t care. All of the ingredients needed to cause a complete breakdown in the country are in place and ready to fall.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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