Sunday, August 22, 2010

The Stock Market Is Crumbling: This Is A Depression

Richard Russell - The Stock Market Is Crumbling

The Godfather of newsletter writers, Richard Russell, summed up our situation as follows, “crumbling.”  Again I will repeat what I have always liked about Russell is that he likes to focus on the big picture.  What is the big picture?  Here are a few snippets from his latest commentary...
August 21, 2010
 
Richard Russell:

On to the markets. The stock market is crumbling -- actually crumbling before our very eyes.

...I'm saying that half the issues in the Dow, the NYSE, S&P and NASDAQ have now sunk below their important 200-day moving averages. And the same is true of the big stock averages.

And the incredible thing is that even as the stock market is falling apart, the experts and the media are taking in and believing the government reports, and they think everything is bright and sunny.. It's as if they can't see or take in what the market is doing -- the whole financial world seems to be brain-washed...I've never seen anything like it.

The Russell opinion. It's the markets that are telling the real story, not the analysts or the government..Believe me if the stock market continues the way its been going (particularly if it crashes) it's going to scare the living hell out of America's consumers. If consumers freeze up, you're going to see all the deflation you want. So who to believe, the analysts and economist or the stock and bond markets?

At this point, who's running the nation? It's not Obama, it's not Geithner or Bernanke, it's not even the Fed -- IT'S THE MARKETS. And we'll watch 'em as intently as a barn owl watches a mouse.

A final take -- It's simply uncanny to see the stock market (most stocks) falling apart while the media and the government tells us that "things are looking better." It's as if the nation is watching a horror movie and is reacting with a case of the giggles.

As for Richard Russell, he's resting easy. I've been urging my subscribers to "clean house" and be OUT of all stocks. I think (hope) I've got a lot of happy, solvent subscribers, which is exactly what I want as this market teeters on the edge of an historic collapse.

Question -- Russell, recently you wrote up certain utilities as a source of income. What are your latest thoughts now?

Answer -- My thoughts now is that I want subscribers OUT of all stocks and bonds except for gold and gold items. Before this bear market is over, it's going to take down everything. We're in cash and gold, and probably less cash as time goes along.

This is not a recession, but rather a depression.  Recessions tend to break people, depressions on the other hand tend to consume them.

35 comments:

  1. i don't remember the exact date that i encounter this website but it must have been a few months ago when i typed on google "economic depression" anyways, no destructive-criticism but since i started reading the articles posted here every few hours, i have concluded that every post is the same it all consist of the same message of when,where,who,what, and why the "economy is going to collapse". one big article with factual concrete collective information would just do for this whole year, in conclusion i understand that as days come and go there's always news to be reported. oH! and this also goes for the youtube videos and all the economic trend forecasters.

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  2. 10:12pm you have a point but EA also includes different places and different people talking about many stories that aren't usually posted in the main media...Say: The tax on drivways/Oregon having 1 week of cash/the gold bullion being found to be fake/the story on the 99s as they're running out of funds/all the lies BP has/is doing etc etc.

    Plenty of people having "Doubting Thomas Syndrome" won't believe unless you show them...True some of the stories sound alike but at least it's coming from different sources.

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  3. 10:12PM

    You missed the entire point of the article.

    "the media and the government tells us that "things are looking better.""

    The reason why you're here is because you know something isnt right.

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  4. But 11:11 what is not right?

    i think that is the question that i really want to ask. i have kept up to date with this blog and the videos with Gerald celente and other people and all i can do just like other is listen and do nothing. not that i understand much or all about how real estate,mortgages,stocks and the whole credit thing work but in plain English what from today to next year what can really happen to the system that we know as is?

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  5. 10:27

    good point.

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  6. 11:51pm

    In plain english the global economy took out too much debt that will never be able to service based on anemic income growth and extreme wealth concentration to the top 1%. Therefore, the system will implode by the weight of it. What comes out of the ashes of that is what is being speculated. But there will be deflation because debt saturation has reached and there will either be default or at least 10 years of delevaging and paying down that debt and not enough consumption. And with 70% of the economy being consumption that my friend is Great Depression 3.0.

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  7. Every single bit of information is important because it helps build a picture of what is happening. Facts are not forthcoming from the mainstream media because they are stuck in their own bubbles. I can't remember where I saw it but there was an interesting fact that those in the top 5% of income earners still had virtually 100% employment throughout the recession. In that bracket will be every economist, politition, journalist etc. The recession hasn't hit them so they all think everything is OK, time will tell whether these people will be affected in the future.

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  8. Wall Street isn't Main Street. Let it collapse. Let the banks collapse. Let people who work at banks find real jobs.

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  9. This isn't a 'stock market' any longer nor does it have little to do with 'investing' as most people have by now concluded. It's a rigged casino. And since it's a rigged casino then one might as well gamble with their money in Vegas where at least you get a free drink.

    Wall Street shysters screwed the pooch and then when that wasn't enough, shot the golden goose. Let it implode and fall on them in the same steaming pile from whence they came.

    You want my money Wall Street? Here, go dig it out of this American Standard deposit box I've set aside just for you.

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  10. NO question, we are economically sunk-it really is a domino effect and it is happening at an ever increasing rate. Problem is,the degradation is world wide and is taking place at varying rates due to it`s complexity. It`s like the ten men trying to describe an elephant-the whole is equal to the sum of it`s parts. Do not believe what the govt. tells you, and do not believe MSM-they are liars! In the midst of the worst shitstorm the world has ever seen, they will tell you it`s raining puppy dogs and candy canes. Most importantly, any information must be CURRENT-not syncopated bits and bites of past info thrown in as filler-you see that happening in some of the Celente pieces for instance. Writers take note: Be mindful that the average Joe is NOT a student of the phenom; but rather just wants up-to-date-REAL info as to what is going on.

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  11. The most important part about Richard Russell's statements is that HE IS NOT A GOLD BUG. He is about investing and making money, which has primarily been through stock markets. Take everyone's opinios and analysis with a grain of salt, but give Mr. Russell's some serious consideration.

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  12. Remember that the 1930's depression evolved in varying degrees from 1929 until 1941 (WWII). All the Gov't and MSM even then were stating how everything was recovering - but it went on for years. When you view the 30's depression from 2010, hindsight appears that all thing were apparent and obvious, that events were rapid etc. But living through such an event seems like slow motion and thus the reason people today think that all the gloomy information and predictions as to what's coming is false because thay can't see immediate proof of a failure. This current worldwide financial collapse will take collective steps over years and the results will be felt slowly by all, and people looking for immediate proof os a collapse will be pulled down into the vortex of financial doom like a frog in a boiling pot, ie the frog will be boiled to death not realizing he is dying, the human will be bled financially to death not realizing he is dying financially. That's what is happening right now, a slow motion financial train wreck progressing every day. The train wreck may or may not pick up speed due to external factors like Gov't financial stimulus interventions which provide delays and prolong durations, just as in the 30's, but that will not change the fact that there is a collapse in progress.

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  13. Certain bonds are doing ok. I just cashed in a Toyota bond and made money; also a muni. Neither of these bonds had matured. I just "timed" them, like people time stocks. I was amazed and made several gran clear. Two years ago I made a chunk off another muni. The key is to buy below par; general obligation bonds, rated AA or AAA. Long term bonds can go up way before the maturity date. We got out of the S&P 500 10 years ago. I agree with Russell, if there's a panic people won't consume and that's happening now.

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  14. 10:12, I think what you are asking is "now what"? You can prepare. Store extra food/water. buy some silver coins, etc. Look at it as an insurance policy. If the economy does get worse(which is what I believe), you will be more prepared than 95% of this country. Most households only have about 1 week worth of food stores. That goes by really quick.

    3:44 is spot on, This is going to take years to delevrage. It was afterall a 30 year credit bubble.
    Prepare for the worse and hope for the best. But if something does happen, I will be able to provide for my family.

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  15. Slow moving destruction, indeed.

    Another illustration is illegal immigration. My own neighborhood is a perfect example. 12 years ago, when I moved in, the neighborhood was racially balanced. Now it's 97% Mexican, not "Latino", Mexican.

    In less than five years from now, 60-70% of the kids in this neighborhood will drop out of school.

    There is flood control channel next to the neighborhood. The riverbed is trashed with mattresses, a box spring, 2 TV's, shopping carts. This is how Mexicans deal with unwanted items.

    The unemployable kids will turn to crime to find money. The local doctor is any Emergency Room they can find. Naturally they never pay their bills and wonder why the ER is closing soon.

    They fly their Mexican flags with pride.

    My son's report card came home, written in Spanish! I call the school and they answer in Spanish first.

    These illegal immigrants are functionally illiterate and can not offer any meaningful contributions (skilled workforce) to the country.

    It's like cancer, sometimes you don't know you have till it's too late to treat it.

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  16. How much food and water should be stored? Right now, I've got about 8 weeks of each.

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  17. I hope these stock boys take it in the teeth. Geniuses. Monkeys could do as well. Chase that banana up the tree, stock boy, here come's the Hindenburg Omen!

    If you've got money in this ponzi scheme, you deserve what you (don't) get.

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  18. Here in the Midwest, in Iowa, things are great-why all this gloom and doom?

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  19. 1118 not enough, you need 6 months of each, minimum. 1223 is a shill, I was in Iowa city recently and saw many closed down businesses, another with his head in the sand.

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  20. Underground economy will be the new thing going forward as the current economy collapses.

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  21. I think 12:23 is being facetious as in tongue-in-cheek. Like his neighbour 150 ft. over the fence line, he too is picking locusts from his underwear. lol

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  22. 2:25- We do have an underground economy of sorts: It`s called ¨flea market¨ and they are failing miserably...reason is, people still want too damn much for their stuff. No matter how bad the economy gets, by nature people want to believe they have made the buy of the century. I`ve had to knock my prices down fully 1/2 to 1/3 in order to move my stuff in order to make it from pension cheque to pension cheque. Remember folks, it`s still only just ¨stuff¨and you are not married to it. It makes poor damned soup and if you want some scrooch $$ you gotta bite the bullet! You gotta be like the resourceful Chinese-buy high, sell low-works for them! lol

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  23. Where's the August 25th guy...?? Three days to go!

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  24. 11:18,

    not enough, but better than most though. 6 months at least. I went to the local morman storehouse and canned 15 cases of various items. I have been storing bulk items from Costco, etc. Peanut butter is fantastic and cheap. Protein powder also, since protein will be hard to come by if things get real bad. I have 200- 1 oz silver coins and 8x5 gallon water bottles. I still need a Berkey water filter. Dont forget toilet paper/toothpaste, soap, etc and basic medical supplies. I was in the Los Angeles riots as a first responder, the market will get cleaned out in 15 minutes. Also, some extra gas cans filled.

    http://www.survivalblog.com/

    thats a good basic blog to read.

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  25. I love how everyone acts like all you need is some cans of food and everything will be okay. Why would the water company keep pumping water to your home and the electric company feed you with power? If there is no value in money they're not going to just keep providing the service.

    In the event that things truly go that bad, everything will be worthless and having some stock isn't really going to be that great. Make sure to get as much propane as you can so that you have a bit of a chance, and of course guns and ammo. If you prepare and nobody else does, guess what happens to your house?

    Ever seen that Twilight Zone episode where they're having a party and they joke about the guy building a bomb shelter, then the warnings go off and they all try to get in the shelter and kill that guy and his family? That's pretty much what you will have to expect.

    So be discreet, be armed, have your supply but also have as many things as you can be fully independent with.

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  26. How about we work on the here and the now stuff such our day to day comings and goings that is with us at present rather than the Mad Max scenario which realistically, is unlikely to happen. This whole painful process is going to take a long time to grind out as it has taken decades to arrive at this point. I foresee another round of funny money interjection myself, all in time to begin the painful process again. See banana, see monkey.

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  27. First off do you see most people still driving cars? Sure there are less cars driving around then 10 years ago but for the most part the masses are still using them as much as they can afford. That means that society hasnt entered into the Diabolical yet, although we can see evidence of satanstic mindset destrucion. The point about the cars is you still have opportunity, maybe not in the sense of 10 years ago when you would fill out ten apps and get 5 immediate call backs... but money is still being spent regardless. Once a Professor told me and everyone else in the class for that matter the most important thing in life. "Learn the System, F with the System" and that can mean whatever starting point to whatever conclusion you can imagine. Some of us are going to survive no matter what they design to destroy us because we are higher beings then mere cattle. They hope you believe your cattle, will lay down, and die. Do you feel like dieing punk? Well do ya?

    Some random info I found:
    "I strongly suggest that the primary item you store for bartering is food. Look at almost any big disaster, or the lives of people in Third World countries. Food is generally the most sought after item. Use your head when you barter with food. Don't do anything to give the impression that you have lots of it. You may want to act like it is your very last meal and you're only trading it away out of desperation. You don't want someone coming by later and taking the rest of your food by force.

    Other items I would suggest are lighters, matches, toilet paper, feminine protection, duct tape, razors, soap, lithium batteries, aluminum foil, coffee, small bottles of drinking alcohol, and cigarettes. Those last items may be very desirable to those with addictions, even if you don't use them yourself. Fuel might also be used for barter, but its bulk, hazards, and shorter shelf life might make it hard to store enough to spare any for barter."

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  28. At this point, who's running the nation? It's not Obama, it's not Geithner or Bernanke, it's not even the Fed -- IT'S THE MARKETS. And we'll watch 'em as intently as a barn owl watches a mouse.
    just so ,the invisible hand of capital the free markets in usury debts ,derivitives ,money created as debts for bondholders benifit -a claim to own future government tax revenues- etc, that is out of control of a humanity that created the master -the markets and bows down to its own creation as its lord and master.
    Casino capitalism and corporate state socialism that tithes the masses with bailout tribute for debts to wealth accumalated in the past .

    it is people who are the mice victims and the great god capital is a vulture not a wise owl.

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  29. 11:18 said

    "How much food and water should be stored? Right now, I've got about 8 weeks of each."

    I have 3 people in my family so for 6 months, we need roughly 540 gallons of water. At the present time, I have about 75 gallons stored. I buy the water storage bottles for less than $10.00 each. Drop the Fuck Walmat attitude, you can't buy these containers at Target or Kmart.

    - One gallon of water per person, per day. This does not include water for cooking, cleaning and bathing.
    - In the post SHTF world, stuff we call "junk food" is absolute.
    ** Spam
    ** DAK canned ham
    ** Vienna sausages
    ** Raman Noodles (very high salt content)

    All the stuff we say is "bad today", will save your life tomorrow. That extra fat in Spam, DAK, Corned Beef, will fuel your body.

    - Rice
    - Beans
    - #10 size cans of any fruits and veggies
    - Dehydrated hash brown potatoes
    - Dehydrated instant potatoes
    - Buy 25 pound bags or salt and sugar
    - Buy the big bottles of ground pepper

    Sam's Club has a wonderful First Aid kit for $20.00.

    Buy as much OTC medications as you can.

    I have a small solar array. It will power up a compact fridge and keep my radios and night lights glowing. Naturally I will have to black out my windows, if the neighbors knew I had electric power and they did not, it could ugly fast.

    And next comes your neighbors. If they choose not to prepare and you did, they will come knocking on your door. Will you help them, or show them the door? You prepared for your families' survival and not the unprepared next door neighbor. Will you have it in you to "just say no"?

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  30. Food only last so long.
    So does ammo for that matter.

    If it's a temporary economic dislocation you're prepping for then fine. If it's TEOTWAWKI then long term sustainability is a factor and I would venture to say few could handle that.

    And that's the pertinent question. Just how far pass the tipping point do things go? Just how much do things break down and how long can we expect the situation to persist?

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  31. On that morning of 9/11 can you imagine what the people in the second tower were thinking? The officials came on the intercom and told them to go back to work and everything was under control. But you know they went to their windows and were watching. But many stayed right there in the building. And the officials told them to remain calm, everything was fine... Think about it. Were the officials right? Obviously not. What the officials did and what our government does is a knee jerk reaction intended to keep everyone calm. They usually don't have any better insight then any of us do. Remain calm!! Because I'm going to get the f**k out of the building and the more of you suckers looking out the window listening to the man the better. We don't need any panic because I'm going to the grocery store and buying everything I can get my hands on. Stay calm!! I'm preparing...

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  32. The fact that a 3rd building fell on 911 and was not hit by a plane, is fact it was an inside job, otherwise why was it wired to blow on the same day that the other two fell? Proof positive it was an inside job.

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  33. 10:02 You are such a fool. Since this was planned during Clinton's presidency and pulled off during Bush's presidency how, exactly, did that whole inside thingy happen. Can't you just see Clinton turning over the inside job to Bush. WHat would he say? You looney conspiracy nuts never think about stuff like that. No! Don't let logic or common sense get in the way of a good conspiracy theory...

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  34. "You looney conspiracy nuts never think about stuff like that. No! Don't let logic or common sense get in the way of a good conspiracy theory..."
    Thats a true american attitude as you say use
    Logic ,reason, common sense and faith in the fantasy truths as reported by the American Democrat and Republican bought off polital agents of the ruling elite.
    So ,
    "No! Don't let logic or common sense get in the way of a good conspiracy theory"

    The Elite have a good conspiracy theory right:
    All done my 19 satanic muslims arab expert pilots able to defeat america while armed only with boxknives and by using the exsplosive power of aviation fuel to melt the steel structures of multi story buildings.
    Stinken arab supermen, so satanic powerful that they were able to bring down building 7 in a controled demolition without needing to even hit it with a plane.Common sense says it "Must have been the satanic power of the prayers of the Jihardis!"
    but as you say:
    A good conspiracy theory
    AND
    "No! Don't let logic or common sense get in the way of a good conspiracy theory!!!

    Above all stick "logic" and political two party common sense ,reason and the american story, but never ,never ever, seek truth from facts.
    Only looney un-american conspiracy theorists do that.
    But the real facts are stubborn things in conflict with your beleif in logic and your common sense conspiracy theory .

    but real scientific truth is found by first seeking out the facts and only then applying logic and reason to the facts to get the truth.
    Truth may not be fround unscientificaly
    by simply applying 'common sense" while hiding from the real world facts that conflicts with your in the mind FOX reality conspiracy theory and fantasy about the power and devilish skill of the Ex-CIA agent Obama inpspiring 19 arab muslim superpilots .

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