Is the stock market about to crash? Hopefully not, and there definitely have been quite a few “false alarms” over the past few years. But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash. That doesn’t mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time. So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again. Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.
With chaos building across the world and with America at the epicenter, being long equities today, based on one thing and only one thing, a totally misplaced, more likely insane confidence that the Federal Reserve will “not let another collapse” happen, is about as foolish a position as even the most caricaturesque con man on Wall Street could ever dream of.
To use an old phrase from my prior life in relatively senior positions at major, name brand investment banks, “we are toast.” The one missing ingredient in the rapid implosion of the American Empire into an abyss of chaos and socioeconomic turbulence the likes of which this nation has never, ever experienced is an equity market collapse and the subsequent realization that the entire economy has been built on an illusion wrapped in a delusion. The seeming acceptance among investors in the illusion of prosperity due to a seriously overvalued stock market truly astounds me, but it has for some time now. When this vaporizes, which it inevitably will, the game is up.
A market buoyed by the printing presses of the Fed and the seriously fiduciarily criminal misallocation of capital by companies whose seeming only investment of value was buying back their own equity or some other firms and enhancing their CEO’s pay and the value of their boards stock options just does not feel right. I am no market timer, but owning equities whose value is based upon a mirage just seems unlikely to lead to permanent wealth.
The problem becomes, of course, in the turbulent times ahead is there such a thing? I have been and remain a confirmed rabid deflationist. There will be years of pain ahead and this minor perturbation in financial markets is likely just a warning tremor. But then again, perhaps not……
The collapse of industrial civilization will be challenging for those who have been preparing for it; for those who haven’t, it will involve massive trauma. The less attached we are to living life as we have known it, and the more open and resilient we are—the more we are utilizing the myriad tools that exist for preparing our emotions, our bodies, and our souls for collapse—the more capacity we create for navigating a formidable future.
===Collapsing Consciously: Transformative Truths for Turbulent Times (Carolyn Baker)