AuthorTopic: The Crash of 2015: The End of the Beginning  (Read 1691 times)

Guest

  • Guest
The Crash of 2015: The End of the Beginning
« on: March 15, 2015, 03:19:52 AM »

From the keyboard of Thomas Lewis

Like us on Facebook

Follow us on Twitter @Doomstead666










Coming soon to an economy near you: a two-train wreck.

Coming soon to an economy near you: a two-train wreck.





First published at The Daily Impact  March 11, 2015


The setup continues of the double train wreck that will decimate the U.S. economy this year; the switches have been thrown to prevent either train from leaving the track, and the engines are accelerating. It doesn’t take much perspective, now, to see both trains, closing fast.


[Note: The Crash of 2015 is not expected to be the collapse of the global industrial economy, which will take a little longer.  Just another lurch downward of the shatteredTitanic, further unsettling those passengers who do not believe in icebergs.]


The end of the first quarter of 2014 will mark the end of the beginning of this disaster. Train Number One, the fracking oil industry, has only enough fuel on board to go a few more miles — it’s accelerating nevertheless, to impress its passengers — but that’s okay because impact will occur just before the engine quits. Train Number Two, the stock market, which for years has been speeding along the edge of a cliff, burning seemingly endless supplies of cheap money, has nowhere to go but down.


For Train Number One, fracking, the beginning of the beginning was last year’s plunge in crude oil prices. That led to massive and spreading layoffs, a stark decline in the number of rigs fracking for oil, but no reduction in  production. The reason: every producer in the fracking patch is up to its eyeballs in debt because each of these 10-million-dollar wells is only good for a couple of years of good production.


So what has March brought us from the patch, as the trains roll on?



How are things going on Train Number Two, the stock market? For a full, hair-igniting analysis read David Stockman’s essay, “Six Years Of Bull Market Bull.” Have the Pepto Bismol handy.


Suffice it to say here in summary that price-earning ratios remain swollen and inflamed, volatility remains violent, and leveraging is still malevolent. Or to put it in non-technical terms: the overwhelming majority of real businesses and real people are suffering and losing ground, while the stock market and the government estimates of “growth” magically levitate into the ether. This is what goeth before a fall.


Thus endeth the beginning. The middle of the end starts April one, when banks review the value of the assets on which they have given credit, and when all kinds of bonds and interest payments will be due.


Hear the rails humming? The trains are coming.



 


***



 


Thomas Lewis is a nationally recognized and reviewed author of six books, a broadcaster, public speaker and advocate of sustainable living. He also is Editor of The Daily Impact website, and former artist-in-residence at Frostburg State University. He has written several books about collapse issues, including Brace for Impact and Tribulation. Learn more about them here.


 


 




Offline RE

  • Administrator
  • Chief Cook & Bottlewasher
  • *****
  • Posts: 41930
    • View Profile
Re: The Crash of 2015: The End of the Beginning
« Reply #1 on: March 15, 2015, 03:40:46 AM »
Tom is stealing my analogies!  LOL.

Thank you Illuminati Scumbag Winston Churchill.  :icon_mrgreen:

<a href="http://www.youtube.com/v/pdRH5wzCQQw?feature=player_detailpage" target="_blank" class="new_win">http://www.youtube.com/v/pdRH5wzCQQw?feature=player_detailpage</a>

RE
Save As Many As You Can

Offline MKing

  • Contrarian
  • Sous Chef
  • *
  • Posts: 3354
    • View Profile
Re: The Crash of 2015: The End of the Beginning
« Reply #2 on: March 15, 2015, 07:15:56 AM »
What does Tom mean when he says "decimate"? Is it the same level of hyperbole used by those claiming "collapse" when what is happening is a reasonable stock market, dropping unemployment, low gas prices for the consumer, decreasing government deficits, the proliferation of opportunity for car salesmen since 2009, and worse yet, the continuing transition to a post liquid fuel transport future?


Sometimes one creates a dynamic impression by saying something, and sometimes one creates as significant an impression by remaining silent.
-Dalai Lama

Offline MKing

  • Contrarian
  • Sous Chef
  • *
  • Posts: 3354
    • View Profile
Re: The Crash of 2015: The End of the Beginning
« Reply #3 on: March 15, 2015, 09:27:03 AM »
Question, does Tom's prediction of some form of disaster this year rank up there with ZH's writeup of the Shadow Stats guys' s claims about the upcoming deflation crisis….in 2009?

Quote
In other words, the economic cycle will come back with a vengeance. Having pulled America out of the abyss by the last hairs on its Rogaine infused head, the Fed and the Administration have merely purchased one-two years of excess time in which insiders can sell all their holdings (look at recent reports indicating the ratio of insider sellers to buyers) and banks can book one/two years of record bonuses before signing off.

http://www.zerohedge.com/article/shadowstats-john-williams-prepare-hyperinflationary-great-depression

So the one or two years became 6? And they didn't sign off. And what happened if you HADN'T kept some portion of your investments in this alleged deflationary market? Well, ask Eddie, his wife is probably still caning him about the head and shoulders for having not listened to HER advice, as she appears to know far more about investing than ZH.
Sometimes one creates a dynamic impression by saying something, and sometimes one creates as significant an impression by remaining silent.
-Dalai Lama

 

Related Topics

  Subject / Started by Replies Last post
2 Replies
1130 Views
Last post January 26, 2015, 04:27:26 PM
by Palloy
The Crash of 2015: Day 29-30

Started by Thomas Lewis Energy

0 Replies
1454 Views
Last post February 03, 2015, 01:08:53 AM
by Thomas Lewis
0 Replies
171 Views
Last post June 29, 2018, 10:40:37 AM
by azozeo