This is what The Slog posted last Friday.

Slog21815Arabia and Asia are now in panic. Western market futures strongly suggest the same is about to happen here. For the first time in years, fundamentals in relation to economic data, commodity prices and collapsing world trade are being obeyed.

During Sunday trading, stock prices in Gulf states sold off massively. The Tadawul All-Shares Index in Riyadh, the Gulf’s leading market lost 6.86%. They should rename it the Tadawful. Property shares fell 9.5%, petrochemicals by 8%. Dubai’s DFM Index plunged 7%, the Abu Dhabi Exchange 5%, and Qatar 5.3%.

Overnight in Asia, the Shanghai Composite has so far fallen 8.5%, the Nikkie 4.5%.

This is all newsy-here-we-go stuff, but the signs have been there for some time: there has been, for example, an 18% chute on the German DAX since the ECB announced its bank manipulation economic stimulation plan some months back. In recent weeks, the dollars leaving the NYSE should’ve told investors all they needed to know. This got so bad in China, the government introduced Draconian laws to halt the selling, and the PBOC began frantically buying shares. But on 18th August, the Shanghai composite fell 6%.
Gold meanwhile had steadily climbed over the last 30 days. It began accelerating upwards eight days ago; it’s now 8.5% up in August to date. But all the other ‘real’ commodities like oil, lumber and copper have fallen off a cliff.
When Fed Chair Janet Yellen opted not to take a rate hike off the table last Wednesday, several gobby commentators said she was mad; events seem to have proved them right, but the Wall Street heavies have always been great believers in the self-fulfilling prophecy technique. Mind you, it did come hot on the heels of a Yuan devaluation.
Anyway, with the FTSE about to open (it’s 08:58 CET here), this is the dismal line up:
* Bloomberg Commodities index at 16 year low
* FTSE futures are saying at least 200 points drop.
 * Dow Jones 400 point loss predicted

* S&P futures have plunged:


Welcome to The Correction. Whether it’s Crash2 or not remains to be seen. Stay tuned.


  1. Ron Paul spent 20 years as a Texas Senator pushing for an audit of the Fed, unsuccessfully.
    He warns of a societal collapse alongside a $US currency collapse:
    Dr. Paul, a believer in sound money, served in a Mobile Army Surgical Hospital during the Korean conflict.
    It can be argued this unratified by Congress “war” was the start of the US slide away from democracy toward totalitarianism.


  2. I love the use of the term “Correction”, for a fall in prices. Or the use of “Profit taking” as an excuse for a fall in prices. Anything to lead the public away from the trail of blood.
    Another howler is the dictum: “The stock market creates wealth”.


  3. These recent stockmarket falls are just pre-play warm-ups. The waterfall effect is about 3 weeks away. Enjoy the ride,it will be wild and long overdue.


  4. So many learned commentators have been suggesting this mild sell off and yet others suggest it is a false correction deemed by their superior models.If all you have is nous what chance do you have?


  5. I was on holiday in October 1987; (lost a perfectly good hat in the gales, but had managed get the meagre Caratacus portfolio of that time into cash the month before). I was on holiday in January 2003 and again in January 2008. Of course I’ve been on holidays at other times too … but I just thought that I’d offer the fact that I’m on holiday from 23rd of next month, apropos of nothing in particular :-)


  6. If this, as you term it, a “mild sell off’ Maria. May the Lord preserve us from a big one! The DJIA futures was down 419 points at 03:00 GMT today 24 Aug 2015 and the Chinese CB is so spooked that they are recklessly throwing PENSION FUNDS cash into the mix only to have their entire market drop some 6% more! (How are they going to Please-Explain THAT to their pensioners next year?)
    JW has stuck to his guns and called this whole disaster correctly for months now.
    I’m looking at the Johannesburg JSE now 09:49 GMT and it’s down more than 2%, scary indeed.
    Glad I don’t have my pension in the casino, that’s for sure.
    Thanks JW.


  7. all the billions we taxpayers donate to the wealth creators! is showing clearly where all the money saved by all the austerity is going. down the drain…


  8. I liked the bit about”Markets are bi-polar”. Given the current chill wind blowing through them I can only assume this means its a polar bear market……..


  9. Wonder if the French train event was supposed to be that … but the organisers didn’t reckon on a few hardy souls aboard who scuppered things before the gundick got properly started?


  10. A false flag event and no mistake but more likely one to aid in the justification of tighter boarder controls and free travel restrictions. They got the medals out pretty damn quick…


  11. Probably why Hollande gave them all the Legion D’Honneur this morning or some simikar accolade. To continue the perception that the whole thing was just a ” random event averted by heroes” …..


  12. Want to know where the bottom will be

    Same place as commodities now .. 2000 to 2002 levels for markets Europe, UK and US
    Thats the best case for US and Europe,

    50/50 it is far worse as the trillions is leveraged loans financing trillions in stock buybacks forces banks to demand more collateral as the cretins see the value of the shares they bought back in at peak crumble away and raise borrowing rates to compensate risk.
    Or the banks go under.
    This will smash forward earning growth to a pittance if anything and you see tens of thousands of corporations go bankrupt and wave after wave of banks follow them.
    Stockholders will be wiped out completely, pension funds left i tatters and local government finances especially Europe and The UK but more importantly in USA where most states are technically bankrupt anyway with the US 200 trillion ponzi farce.
    The the bottom might just come in at early 1990’s levels
    Either way the SPY will not see a new high now for a minimum 1300 trading days and could well beat the record 1800 + trading days.
    I leave you to work out how many years that is


  13. John; Precient much? Your pick of 400 down was good, but it was only after someone bought 600 points on the dow to make everthing appear happy. Reminicent of 1929 when the big banker boys put up some of their money to stamp out the collapse. Didn’t work then. Maybe we can call this one Crash X. “Hope youl have got your things together” as an old song said.


  14. Jdseanjd. Your post refers to Ron Paul as a believer in “sound money”. He is a full on “austrian school” enthusiast. The idea that AS represents any sort of solution should be tempered by the fact that Mrs Thatcher was as fond of friedrich von hayek as she was of milton friedman.
    In a previous post you refer us to a conspiracy theory website article that implys that implies that the jews are still in charge really. Quirkily website’s run by a Jewish Economist. High Priest (and I use the term advisedly) of Austrian School was one Ludwig von Mises, who, shall we say, had more reason to escape Austria post Anschluss than Hayek did !


  15. JdeV, if you hit the reply button, then your comment is flagged up & I know it. I just chanced on this one.
    The Austrian School makes way more sense to me than the Keynesian Big Govt School.
    Ron Paul always makes way more sense to me than any other politician, bar none.
    Friedman & Von Hayek I don’t know enough about to comment.
    Maggie was duped into bank deregulation, the trickle-down theory & the nature of the EU beast.

    & No, I don’t think the Jews are still in charge: I think the Jews are dupes of the Khazars, the real Money Masters.
    The no empathy psychos who really run the West.
    The Jews & Israel, the mad neocons in the US & the Bush/Clinton crime families are being set up as the hate figures leading up to WWIII.

    Oxfam published a list of 80 people owning half the world’s wealth. These 8 can buy & sell that 80:

    Try Bill Still’s 3.5 hr youtube documentary The Money Masters.
    Try William Guy Carr’s book Pawns in the Game.

    I never broad brush a race.


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