– This 2 Day Stock Market Crash Was Larger Than Any 1 Day Stock Market Crash In U.S. History (Economic Collapse, Aug 22, 2015):
We witnessed something truly historic happen on Friday. The Dow Jones Industrial Average plummeted 530 points, and that followed a 358 point crash on Thursday. When you add those two days together, the total two day stock market crash that we just witnessed comes to a grand total of 888 points, which is larger than any one day stock market crash in U.S. history. It is also interesting to note that this 888 point crash comes in the 8th month of our calendar. Perhaps that is just a coincidence, and perhaps it is not. It just struck me as being noteworthy. 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. Overall, this was the worst week for the Dow in four years, and there have only been five other months throughout history when the Dow has fallen by more than a thousand points (the most recent being October 2008). Of course we still have six more trading days left in August, so there is plenty of time remaining for even more carnage.
By itself, the 530 point plunge on Friday was the ninth worst stock market crash in all of U.S. history. The following list of the top eight comes from Wikipedia…
#1 2008-09-29 ?777.68
#2 2008-10-15 ?733.08
#3 2001-09-17 ?684.81
#4 2008-12-01 ?679.95
#5 2008-10-09 ?678.91
#6 2011-08-08 ?634.76
#7 2000-04-14 ?617.77
#8 1997-10-27 ?554.26
Another very interesting thing to note is that the largest stock market crash in U.S. history took place on the very last day of the Shemitah year of 2008, and now we are less than a month away from the end of this current Shemitah year.
It is funny how these strange “coincidences” keep happening.
The financial carnage that we witnessed on Friday was truly global in scope. On a percentage basis, Chinese stocks crashed even more than U.S. stocks did. Japanese stocks also crashed, so did stock markets all over Europe, and emerging market currencies all over the planet got absolutely destroyed.
The following is how Zero Hedge summarized what went down…
- 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
Even though I specifically warned that this would happen, and have been explaining why it would happen on my website in excruciating detail for months, the truth is that I didn’t expect stocks to start crashing this quickly or this ferociously.
Normally, August is a fairly slow month in the financial world. As I have discussed previously, most of the really noteworthy stock market crashes throughout history have taken place during the months of September and October. So I thought that things wouldn’t start getting really crazy for another few weeks at least.
Financial markets tend to fall much faster than they go up, and I believe that we are moving into a time of extraordinary volatility. There will be huge down days, and there will also be huge up days. In fact, the three largest single day rallies in Dow history happened right in the middle of the financial crisis of 2008. So don’t let what happens on any one particular day fool you.
An absolutely gigantic global financial bubble is beginning to burst, and stocks could potentially fall a very, very long way. For instance, just consider what MarketWatch columnist Brett Arends has just written…
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.
It is important to keep in mind that Arends is not a “bear” at all. He is a very level-headed analyst that tries to objectively look at all sides of things.
I sincerely hope that global financial markets will stabilize for at least a couple of weeks. But there is absolutely no guarantee that will happen.
So many of the things that I have been warning about on this website and on End of the American Dream are starting to unfold right in front of our eyes. If I am right, this is just the beginning. I believe that we are moving into a time of unprecedented chaos, and our nation is about to be shaken to the core.
Hopefully you have been preparing for the storm that is coming for quite a while and you will not be surprised by what is about to happen.
Unfortunately, the same cannot be said for the vast majority of Americans. Most of them are totally unprepared for what is coming, and they are going to be completely blindsided by the events that will unfold in the months ahead.
The relative calm of the past few years has lulled millions into a false sense of complacency.
If you are one of those that have dozed off, I have a word of warning for you…
Wake up and get ready.
It’s starting.
2 day stock crash? It has been going on for months, the US market has been totally rigged. A few individuals controlling funds worth hundreds of millions have controlled the US markets completely……….until things started changing in June. China and Greece were the beginnings…….Maybe there are a lot of real investors out there who don’t allow a few greedy guts to control their futures. I don’t have the statistics, so I can’t say, but things started going south in June.
Being the economics geek that I am, I have been watching world markets for a long time. The US was so obviously rigged, I paid less attention until June.
Then, regardless of the efforts of the few in power, the market started showing triple digit losses more and more often. Often, they could keep the market artificially down in losses, but the cracks were coming through. Three weeks ago next Wednesday, the market closed down 151 points. 15 minutes after closing, the number had been adjusted down to -91. That was the first time I had seen such overt and obvious manipulation of the markets. Sometimes, after close can change a point or two, but never by 40%. That told me trouble was indeed brewing, even in the rigged US markets. A few days later, they did it again, although the numbers were less……..
My father took me downtown to buy my first block of stock at the age of 14. That was over 50 years ago, my education and training to watch markets were started young………Back then, you could not buy stock in less than 100 share blocks, it was for people with financial resources and responsibility only. A very tiny percentage of Americans invested, but it was solid, and tightly regulated, a good indicator of the national economy. No longer. It is now under the control of charlatans and thieves.
This is no two day stock market crash, it has been artificially camouflaged by greedy guts and crooks since June. The world economy has finally gotten bad enough, the China and the rest of the world earnings have all showed themselves to be at a standstill……The US economy has been gutted thanks to sold out whore leadership and greedy guts, and it is no longer the #1 economy in the world……..
This has been a long time coming, I was amazed they kept the balls in the air this long……But, I have been watching, and this is no 2 day crash that just happened now. It is the result of years of corruption and self dealing by government officials all over the western economies and China.
Can it be reversed? Not without some serious debt relief for the world. Debt levels for the US, China, Euro….all exceed the quadrillions. There isn’t enough wealth in the world to begin to pay a fraction of these debts.
Another trend I am seeing, even the talking heads are mentioning it…..deflation……That was the most difficult aspect of getting out of the Great Depression……….and this time, it is global.
Food is skyrocketing because much is imported and subject to duties, shelter high because greedy guts can get it……but that is beginning to change. Much has to be changed in the way the world system is run, and a world depression is the only way to force it to happen.