Has the next Lehman Brothers moment arrived? Late Thursday night we learned that the British people had voted to leave the European Union, and this could be the “trigger event” that unleashes great financial panic all over the planet. Of course stocks have already been crashing all over the globe over the past year, but up until now we had not seen the kind of stark fear that the crash of 2008 created following the collapse of Lehman Brothers. The British people are certainly to be congratulated for choosing to leave the tyrannical EU, and if I could have voted I would have voted to “leave” as well. But just as I warned 10 days ago, choosing to leave will “throw the entire continent into a state of economic and financial chaos”. And “Black Friday” was just the beginning – the pain from this event is going to continue to be felt for months to come.
The shocking outcome of the Brexit vote caught financial markets completely off guard, and the carnage that we witnessed on Friday was absolutely staggering…
-The Dow Jones Industrial Average plunged 610 points, and this represented the 9th largest one day stock market crash in the history of the Dow.
-The Nasdaq was hit even harder than the Dow. It declined 4.12 percent which was the biggest one day decline since 2011.
-Overall, Black Friday erased approximately 800 billion dollars of stock market wealth in the United States.
-Thursday was the worst day ever for the British pound, and investors were stunned to see it collapse to a 31 year low.
-Friday was the worst day ever for European banking stocks.
-Friday was the worst day for Italian stocks since 1997.
-Friday was the worst day for Spanish stocks since 1987.
Ah, “the Lehman moment”. What a meme that one. Ponder that from ’08 until ’15 the average Family in America lost 1/3 of it’s net worth (conservative). Ponder that during that same time period the average CONgress critter increased theirs by 15-16%. There was a crash, we ignored those who were crushed and made homeless we put the American sheeple on the tab through bank bailouts to re pump the Stawk market. We pretended those hurt (who turned to welfare) didn’t exist because they had a SNAP card that would swipe @ Walmart. We looked away while scum like Mozillo skated. And we called it “the Lehman moment”. Bullshit. We have been circling the drain for some time now. The myth is that a cataclysmic event is required to rationalize full SHTF. Ignore incremental SHTF at your own peril. It is happening and has been for some time. The elite have been able to sip champagne while the Feral Reserve boobs have piled monetary kilos of coke onto the rigged casino tables. All good things come to an end.