Dire warnings and predictions about the wobbly state of the world economy have been flooding the internet for months (and in some cases - years). But, the tone has increased by decibels since the close of markets last Friday.
Judging by Shirat Devorah's report this morning on Asian markets, US stocks could be in real jeopardy. But, it's not just stocks that are at risk. The price of oil is plunging, too. (This morning it is has broken through the psychological barrier of $40 pb.) And aside from the good news of lower pump prices for consumers, the rest of the news is all bad.
Economist Harry Dent predicted this would occur in the current timeframe nearly nine months ago: Harry Dent: Oil Price Plunge Trigger For Next Global Crisis.
Dent explains, “Normally, oil prices falling in a good economy like the 80’s and 90’s, where we have falling inflation and booming productivity and good demographic trends, this would be a good thing.”
“It is a good thing for consumers and businesses, but it is a bad thing for financial markets and our whole debt structure. We have the greatest debt bubble in history. It’s the greatest asset bubble in history, including stocks, commodities, real estate and everything.”
“The last time this bubble burst was in 2008 because of the subprime crises. A small tranche of loans went bad, and it triggered a whole debt crisis, that’s what I see.”
He discusses the subject with Alex Jones back in January in the video below.