One Big Reason a Global Stock Market Crash in 2016 Is More Likely Than Ever

By David Zeiler – Re-Blogged From http://www.wallstreetexaminer.com

With each passing day, the irresponsible behavior of the world’s central banks brings us closer to a full-blown global stock market crash in 2016.

We’re already in a bear market. On Thursday, the MSCI All-Country World Index fell 1.3%, giving it a 20% decline since last May.

Issues such as slowing economic growth in China, $5 trillion of emerging market debt, and rock-bottom oil prices have made investors increasingly skittish.

But now the world’s central banks have started to toss gasoline on the fire in the form of negative interest rates. The lower they go, the more likely they are to trigger a global stock market crash in 2016.

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The Breaking Point?

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

We have a very important inflection point coming next week with the Fed meeting.  I believe the inflection point has already been reached a few weeks back but next week may be the final straw.  Will the Fed raise rates to “save face” and try to stem the loss of credibility?  Or will they remain “patient” (cornered) and realize they cannot raise rates without razing the entire building?

Before getting to the rate hike thoughts, a bit of backdrop is needed.  World equity (and credit/currency) markets are in disarray.  20-40%+ drops in equity bourses around the world are now common.  In plain English, the world is already in a bear market of significant historical proportions.  Credit markets particularly in Europe are showing signs that illiquidity is taking over.  The German bund trading to .8% up from nearly 0% is just one illustration.

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Stock Market Calls Fed’s Bluff

By Michael Pento – Re-Blogged From http://www.pentoport.com

As the Fed nears its proposed first rate hike in nine years the stock market is becoming frantic. The Dow Jones Industrial Average is down around 10% on the year, as markets digest the troubling reality that our central bank may be raising interest rates into an emerging worldwide deflationary collapse.

The Fed normally raises rates when inflation is becoming intractable and robust growth is sending long-term rates spiking. However, this proposed rate hike cycle is occurring within the context of anemic growth and deflationary forces that are causing long-term U.S. Treasury rates to fall.

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Why We Can’t Handle An Equities Bear Market, Part 1: State Budgets Will Implode

By John Rubino – Re-Blogged From http://www.DollarCollapse.com

Back when society’s balance sheet was reasonably solid, the occasional bear market was no big deal. A 20% drop in the average S&P 500 stock would scare investors and lead to slight declines in consumer spending and government capital gains tax revenue, but the overall economy would barely notice such a minor speed bump.

But that was then. Like a person with an impaired immune system, today’s developed world is so highly leveraged that a shock of any kind risks catastrophic complications. Which is why governments and central banks now meet every incipient crisis with quick infusions of newly-created cash and lower interest rates. We can’t risk letting markets be markets any more.

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China’s Stock-Bubble Burst

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

China’s stock bubble has burst, with its stock markets utterly collapsing after rocketing parabolic.  The failure of this popular speculative mania has grave implications for the global stock markets.  It shatters the universally-believed myth that central banks can nullify normal market cycles.  No government has more power over its stock markets than China’s, yet not even it could magically eradicate greed and fear.

Even before their recent calamity, the Chinese stock markets had been the most-interesting financial story of 2015.  Having the world’s second-largest economy, China is immensely important in global markets.  And its stock markets were soaring, as evidenced by China’s flagship benchmark stock index.  It is the Shanghai Stock Exchange Composite Index (SSEC), the local equivalent of the US S&P 500.

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‘Titanic’ Global Economy May “Collapse” Warn HSBC – Gold Is Lifeboat

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

-“The world economy is like an ocean liner without lifeboats …” – HSBC
– Four areas of high risk identified by HSBC
– Risk of stock market crash
– Pension funds and insurers may not meet obligations
– Chinese recession may drag U.S. into recession or depression
– Premature rate rise would expose very fragile global economy
– “There aren’t enough lifeboats to go round”
– Gold vital lifeboat when global ship strikes iceberg

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Q1 Earnings Risky For Stocks

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The highly-anticipated first-quarter earnings season is in full swing, with traders eager to see how US companies are faring.  While expectations are low, these profits releases still collectively pose serious risks for today’s overvalued and overextended US stock markets.  A few high-profile misses could prove all it takes to unleash a long-overdue serious selloff.  Investors and speculators alike need to remain wary.

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