{"id":37469,"date":"2018-09-07T07:42:59","date_gmt":"2018-09-07T12:42:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37469"},"modified":"2018-09-07T07:42:59","modified_gmt":"2018-09-07T12:42:59","slug":"when-the-uss-stock-market-bubble-bursts-inevitable-disaster-will-follow","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37469","title":{"rendered":"When The US\u2019s Stock Market Bubble Bursts, Inevitable Disaster Will Follow"},"content":{"rendered":"<h3><a href=\"http:\/\/www.shtfplan.com\/headline-news\/when-the-uss-stock-market-bubble-bursts-inevitable-disaster-will-follow_09062018\">When The US\u2019s Stock Market Bubble Bursts, Inevitable Disaster Will Follow<\/a><\/h3>\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-30855\" src=\"http:\/\/shtfplan.com\/wp-content\/uploads\/2015\/09\/stock-market-bubble.jpg\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" srcset=\"http:\/\/shtfplan.com\/wp-content\/uploads\/2015\/09\/stock-market-bubble.jpg 480w, http:\/\/shtfplan.com\/wp-content\/uploads\/2015\/09\/stock-market-bubble-300x250.jpg 300w\" alt=\"\" width=\"560\" height=\"467\" \/><\/p>\n<p>Complete and utter disaster will be inevitable and unavoidable when the United States\u2019 stock market bubble bursts. Unfortunately, too many think the high stock market is evidence of a stable economy, but it\u2019s actually an artificial\u00a0bubble that will end in a disastrous\u00a0crisis.<\/p>\n<p>This unusual market strength is not\u00a0evidence\u00a0of a strong, organic economy, but of an extremely\u00a0unhealthy, artificial bubble economy\u00a0that will end in a crisis that will be even worse than we experienced in 2008,<a href=\"https:\/\/www.forbes.com\/sites\/jessecolombo\/2018\/09\/05\/disaster-is-inevitable-when-americas-stock-market-bubble-bursts\/#4cabdcf01b82\" target=\"_blank\" rel=\"noopener\"> reported <\/a><em>Forbes.<\/em>\u00a0 The current market is highly unstable due to an artificially low interest rate.<\/p>\n<p><a href=\"https:\/\/www.forbes.com\/sites\/jessecolombo\/2018\/09\/05\/disaster-is-inevitable-when-americas-stock-market-bubble-bursts\/#4cabdcf01b82\" target=\"_blank\" rel=\"noopener\"><em>Forbes<\/em> writer Jesse Colombo<\/a> explained it well. Ultra-low interest rates\u00a0help to create bubbles in the following ways:<\/p>\n<ul>\n<li>Investors can borrow cheaply to speculate in assets (ex: cheap mortgages for property speculation and low margin costs for trading stocks)<\/li>\n<li>By\u00a0making it cheaper to borrow to conduct share buybacks, dividend increases, and mergers &amp;\u00a0acquisitions<\/li>\n<li>By discouraging the holding of cash in the bank versus speculating in riskier asset markets<\/li>\n<li>By encouraging <a href=\"http:\/\/www.shtfplan.com\/headline-news\/peter-schiff-we-will-have-inflation-and-recession-at-the-same-time_08282018\" target=\"_blank\" rel=\"noopener\">higher rates of inflation,<\/a> which helps to support assets like stocks and real estate<\/li>\n<li>By encouraging more borrowing by consumers, businesses, and governments<\/li>\n<\/ul>\n<p>Another Federal Reserve policy (aside from the ultra-low Fed Funds Rate) that has helped to inflate the U.S. stock market bubble since 2009 is quantitative easing or QE.\u00a0 Many have warned about the negative effects of QE only to be told by leftists that it was \u201cnecessary.\u201d When executing QE policy, the Federal Reserve creates new money \u201cout of thin air\u201d in digital form and uses it to buy Treasury bonds or other assets. That action pumps liquidity into the financial system. <a href=\"http:\/\/www.shtfplan.com\/headline-news\/everyone-preparing-for-the-wrong-outcome-schiff-says-fed-cant-raise-rates-qe4-is-coming_09082015\" target=\"_blank\" rel=\"noopener\">QE helps to push bond prices higher and bond yields<\/a>\/<a href=\"http:\/\/www.shtfplan.com\/headline-news\/negative-interest-rates-destroying-world-economy-doom-and-gloom-outlook-for-banks-in-europe_02082016\" target=\"_blank\" rel=\"noopener\">interest rates lower throughout the economy.<\/a> QE has another indirect effect as well. It causes stock prices to surge because low rates boost stocks,<a href=\"https:\/\/www.forbes.com\/sites\/jessecolombo\/2018\/09\/05\/disaster-is-inevitable-when-americas-stock-market-bubble-bursts\/#4cabdcf01b82\" target=\"_blank\" rel=\"noopener\"> wrote Colombo.<\/a><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When The US\u2019s Stock Market Bubble Bursts, Inevitable Disaster Will Follow Complete and utter disaster will be inevitable and unavoidable when the United States\u2019 stock market bubble bursts. Unfortunately, too many think the high stock market is evidence of a stable economy, but it\u2019s actually an artificial\u00a0bubble that will end in a disastrous\u00a0crisis. This unusual [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,7921,431,21561,6489,7195,661,662,6490,3650,2442],"class_list":["post-37469","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-forbes","tag-interest-rates","tag-jesse-colombo","tag-mac-slavo","tag-market-bubble","tag-qe","tag-quantitative-easing","tag-shtfplan-com","tag-us-federal-reserve","tag-us-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37469"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37469\/revisions"}],"predecessor-version":[{"id":37470,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37469\/revisions\/37470"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}