Wall Street Starts Freaking Out Over Bad Economic Numbers

 When the financial world almost collapsed in 2007-2009, we avoided the collapse but we really didn't fix anything.  All we did was print a whole bunch of money to get the world to hold onto the confidence that America and the central bankers could keep us from another 1930's depression.  Today we refer to that time as the Great Recession.  It was scary times for sure.

So what's happening today as the markets are crashing?  

The government never slowed down spending so the US Treasury never quit printing money.  And when you print money asset prices eventually go up so as to equal the new supply of money.  Pretend that General Mills is trading at $30/share and that $10 trillion dollars were in existence.  If the government overnight changed the supply of dollars to $20 trillion and General Mills did nothing to change their value, by default their share price would have to go to $60/share just to stay the same value.

Now apply that same explanation to all 500 stocks in the S&P 500 and the 30 stock in the DOW.  The DOW has closed at over 40,000 for the past few weeks which is an all-time high.  Do you think it has anything to do with the massive inflation that has been released by printing copious amounts of dollars??

For sure it does!!

So when bad news comes out the past few days about the American Economy not being as great as we were told, investors panic.  They want to cash out when the DOW is at 40,000 and not watch it fall by 20% or more.

For a long time, there was a lot of denial about the direction that the U.S. economy was heading.  The Biden administration and the mainstream media just kept insisting that everything was just fine even though everyone could clearly see that it wasn't.  But now reality is setting in.  

Last week we got some numbers that Wall Street really didn't like, and a massive temper tantrum ensued.  The panic that we witnessed on Friday and continued on Monday was quite breathtaking, and many are concerned that it could bleed over into the new week.  Investors are desperate for the Federal Reserve to cut interest rates, but so far the Fed has not moved.

On Friday, many were surprised when the employment numbers were much worse than anticipated...

U.S. job growth cooled sharply in July while the unemployment rate unexpectedly rose to the highest level in nearly three years.

The Labor Department on Friday reported that employers added 114,000 jobs in July, missing the 175,000 gain forecast by LSEG economists. The unemployment rate also unexpectedly inched higher to 4.3% against expectations that it would hold steady at 4.1%.

It marked the highest level for the jobless rate since October 2021.

Please keep in mind that the U.S. economy must produce at least 150,000 new jobs each month just to keep up with population growth.

Here;  Financial Turmoil: Are We Just Getting Started? (prophecynewswatch.com)

Could this be the start of a great financial panic that ultimately starts the financial collapse of America which then tears into the rest of the world as they flee US Dollars and seek safe havens somewhere else?

We have no clue.  It might be a small correction and the financial world keeps right on building in a week or two.  If Donald Trump gets in the markets might start going straight up as they did in 2016.

Remember, we can't take ANY treasure with us so let's lay up what we have in heaven were moth and rust and inflation can't destroy any of it.