Unlike the one in Star Wars, there’s no way to blow up this Death Star. It will, in fact, blow up the global economy. From Bill Bonner at bonnerandpartners.com:
PARIS – “Keep your eye on Friday,” the old-timers used to say.
When the pros are worried, they sell on Friday so they can spend the weekend without sweating.
When they are confident, they buy on Friday so they don’t miss out on weekend gains (when traders engage in electronic “after-hours” trading).
Last Friday, selling pressure left the Dow 666 points lower by the closing bell. And this morning, stock markets everywhere from Tokyo to London are sliding.
Markets go up and down. This market will go down, no doubt about it. If not now, later. That would be nothing new. Hardly worth mentioning.
But there’s more to the story: In addition to plunges for stocks and bonds, the entire financial system is headed for a long, painful destruction.
So far, hardly anyone notices.
Today’s New York Times makes no mention of the Death Star headed for the U.S. economy. Instead, all we find is the typical public nonsense.
Trump did this… Russia did that… Nunes… Mueller… Israel… Poland… blah-blah. If we’re right about what is coming, none of this will matter.
But that’s the way it works.
The old-timers also say that a bear market will always try to take as many investors down with it as possible.
It would not be unusual for stocks to recover… so that investors think the danger is over. And then – whack! – a real crash.
As always, we wait to find out. We will do our best to enjoy it… trying always to understand it.
We watch. We wonder. The dots come together – slowly, slowly… then all of a sudden.
To continue reading: Death Star Headed for the U.S. Economy