22 Signs
That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The
Beginning, By Michael Snyder, on February 4th,
2016
As bad as the month of January was
for the global economy, the truth is that the rest of 2016 promises to be much
worse. Layoffs are increasing at a pace that we haven’t seen since the
last recession, major retailers are shutting down hundreds of locations,
corporate profit margins are plunging, global trade is slowing down
dramatically, and several major European banks are in the process of completely
imploding. I am about to share some numbers with you that are truly
eye-popping. Each one by itself would be reason for concern, but when you
put all of the pieces together it creates a picture that is hard to deny.
The global economy is in crisis, and this is going to have very serious
implications for the financial markets moving forward. U.S. stocks just
had their worst January in seven years, and if I am right much worse is still yet
to come this year. The following are 22 signs that the global economic
turmoil that we have seen so far in 2016 is just the beginning…
1.
The number of job cuts in the United States skyrocketed 218 percent during the month of January according to Challenger, Gray
& Christmas.
2.
The Baltic Dry Index just hit yet another brand new all-time record low.
As I write this article, it is sitting at 303.
4.
In the U.S., the Restaurant Performance Index just fell to the lowest level
that we have seen since 2008.
5.
In January, orders for class 8 trucks (the big trucks that you see shipping
stuff around the country on our highways) declined a whopping 48 percent from a year ago.
6.
Rail traffic is also slowing down substantially. In Colorado, there are hundreds of train engines that are just sitting on the tracks with nothing to do.
7.
Corporate profit margins peaked during the third quarter of 2014 and
have been declining steadily since then.
This usually happens when we are heading into a recession.
8.
A series of extremely disappointing corporate quarterly reports is sending
stock after stock plummeting. Here is a summary from Zero Hedge of a few examples that we have just witnessed…
·
SHARES OF LIONS GATE ENTERTAINMENT
FALL 5 PCT IN EXTENDED TRADE AFTER QUARTERLY RESULTS – RTRS
·
TABLEAU SOFTWARE SHARES TUMBLE 40
PCT IN AFTER HOURS TRADING – RTRS
·
YRC WORLDWIDE SHARES DOWN 16.4 PCT
AFTER THE BALL FOLLOWING RESULTS – RTRS
·
SPLUNK INC SHARES DOWN 7.6 PCT IN
AFTER HOURS TRADING – RTRS
·
LINKEDIN SHARES EXTEND DECLINE, DOWN
24 PCT AFTER RESULTS, GUIDANCE – RTRS
·
HANESBRANDS SHARES FURTHER ADD TO
LOSSES IN EXTENDED TRADE, LAST DOWN 14.9 PCT – RTRS
·
OUTERWALL SHARES FALL 11 PCT IN
EXTENDED TRADING AFTER QUARTERLY RESULTS – RTRS
·
GENWORTH SHARES DOWN 16.5 PCT AFTER THE
BELL FOLLOWING RESULTS, RESTRUCTURING PLAN
9.
Junk bonds continue to crash on Wall Street. On Monday, JNK was down to 32.60 and
HYG was down to 77.99.
10. On Thursday, a major British news
source publicly named five large European
banks that are considered to be in very serious danger…
Deutsche Bank, Credit Suisse,
Santander, Barclays and RBS are among the stocks that are falling sharply
sending shockwaves through the financial world, according to former hedge fund
manager and ex Goldman Sachs employee Raoul Pal.
11. Deutsche Bank is the biggest bank in Germany and it has
more exposure to derivatives than any other bank in the world.
Unfortunately, Deutsche Bank credit default swaps are now telling us that there
is deep turmoil at the bank and
that a complete implosion may be imminent.
12. Last week, we learned that Deutsche Bank had lost a
staggering 6.8 billion euros in 2015. If you will recall, I warned about massive
problems at Deutsche Bank all the way back in
September. The most important bank in
Germany is exceedingly troubled, and it could end up being for the EU what
Lehman Brothers was for the United States.
18. Sprint just laid off 8 percent of its workforce and GoPro is letting go 7 percent of its
workers.
19. All over America, retail stores are shutting down at a
staggering pace. The following list comes from one of my previous articles…
-J.C. Penney will be permanently
shutting down 47 more stores
after closing a total of 40 stores in 2015.
-Sears has shut down about 600 stores over the past year or so, but sales at the stores that
remain open continue to fall precipitously.
20. According to the New York Times, the Chinese economy is
facing a mountain of bad loans that “could exceed $5
trillion“.
21. Japan has implemented a
negative interest rate program in a
desperate attempt to try to get banks to make more loans.
22. The global economy desperately needs the price of oil to go
back up, but Morgan Stanley says that we will not see $80 oil again until 2018.
It is not difficult to see where the
numbers are trending.
Last week, I told my wife that I
thought that Marco Rubio was going to do better than expected in Iowa.
How did I come to that conclusion?
It was simply based on how his poll
numbers were trending.
And when you look at where global
economic numbers are trending, they tell us that 2016 is going to be a year
that is going to get progressively worse as it goes along.
So many of the exact same things
that we saw happen in 2008 are happening again right now, and you would have to
be blind not to see it.
Hopefully I am wrong about what is
coming in our immediate future, because millions upon millions of Americans are
not prepared
for what is ahead, and most of them are going to get absolutely blindsided by
the coming crisis.
http://theeconomiccollapseblog.com/archives/22-signs-that-the-global-economic-turmoil-we-have-seen-so-far-in-2016-is-just-the-beginning
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