Stocks are falling again, and many believe that this new crisis is only just beginning.  After a disappointing end to last week, a lot of investors were hoping for a bounce to start this week, but so far that has not materialized.  As I write this article, all the big markets in Asia are down, and it looks like it is going be be a rough morning for Wall Street.  Of course we probably won’t see too much movement as global markets wait to see what happens on Tuesday, and those results could potentially move things up or down substantially.  Ultimately, I have a feeling that Wall Street will not be too happy if control of Congress is divided, because that would almost certainly mean that very little will get accomplished in Washington for the next two years.  Instead, we will likely see even more bickering and fighting than we are seeing now.

But no matter what happens in the short-term, a lot of experts are convinced that the big market crash that everyone has been waiting for is finally here.

One of those experts is David Stockman.

Stockman is a former member of Congress, and he was the Director of the Office of Management and Budget under President Ronald Reagan.  These days he is a frequent contributor on CNBC, and he recently told the network that there will be “a 40 percent stock market plunge”…

David Stockman warns a 40 percent stock market plunge is closing in on Wall Street.

Stockman, who served as President Reagan’s Office of Management and Budget director, has long warned of a deep downturn that would shake Wall Street’s most bullish investors. He believes the early rumblings of that epic downturn is finally here.

…click on the above link to read the rest of the article…

This was an October that many of us will never forget.  The month of October is typically the most volatile month of the year for stocks, and that was definitely the case in 2018.  It was the worst month for the S&P 500 in 7 years, and it was the worst month for the Nasdaq in almost 10 years.  But the damage could have been much worse if we had not seen a bounce the last two trading days of the month.  On Wednesday, the Dow Jones Industrial Average was up 241 points, and investors are hoping that this is a sign that things are starting to settle down a bit.  And hopefully things will be calmer in November, because things were so chaotic in October that the month has already been branded “Red October” by the mainstream media…

Wall Street finally bid good riddance to what one professional stock investor dubbed “Red October.”

In a tumultuous month marked by big price swings, rising fear levels and emerging risks, the U.S. stock market suffered its biggest October decline since the 2008 financial crisis, prompting shaken investors to reassess the staying power of a bull run that began more than nine years ago.

When we go back and look at the month as a whole, the damage is breathtaking.

Here is a summary of the carnage that we witnessed…

-October was the worst month for the S&P 500 since September 2011.

-October was the worst month for the Nasdaq since November 2008.

–Nearly 2 trillion dollars in U.S. stock market wealth was wiped out.

-Overall, approximately 8 trillion dollars in global stock market wealth was wiped out.

-October was the worst month ever for the “FANG” stocks.

-Facebook was down 7.7 percent.

-Alphabet (the parent company of Google) was down 9.7 percent.

…click on the above link to read the rest of the article…

Will we someday look back on October 2018 as the turning point?  As the month began, people were generally feeling pretty good about things, and the U.S. stock market quickly set a new all-time high.  But from that point on, the wheels fell off for Wall Street.  We just witnessed the worst October for U.S. stocks since the financial crisis of 2008, and at this point more than 8 trillion dollars of global wealth has been completely wiped out.  But it isn’t just the stock market that is being shaken.  The horrific violence in Pittsburgh is just the latest in a string of events that have rattled the entire nation.  Sometimes I feel like I am literally watching the fabric of our society come apart right in front of my eyes.  It is almost as if there is a tangible presence of evil in the air, and it seems to be getting stronger over time.  For quite a while I have been warning that levels of anger and frustration are rising to unprecedented levels, and all of that anger and frustration is leading people to do things that are absolutely unthinkable.  And if people are this crazed now, how bad are things going to get once the economy really starts unraveling?

Let there be no doubt – if U.S. stocks crash really hard, it will cause a massive credit crunch, and that would absolutely strangle economic activity.

Yes, October was bad, but we can recover from what happened in October.

But if November and December are equally as bad or worse, we could have a nightmarish crisis on our hands very rapidly.  And many experts believe that this market is ultimately going to decline much, much further.

For example, just consider what Wolf Richter is saying…

…click on the above link to read the rest of the article…