Guess What Happened The Last Time The Price Of Oil Crashed Like This?

There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. 

The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. 

Well, now it is happening again, but this time the stakes are even higher. When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing affect on financial markets.

 As you will read about below, energy companies now account for approximately 20 percent of the junk bond market. And a junk bond implosion is usually a signal that a major stock market crash is on the way. 

So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street. 

As I mentioned above, energy companies now account for close to 20 percent of the entire junk bond market. As those companies start to fail and those bonds start to go bad, that is going to hit our major banks really hard…

Over the coming weeks, keep your eye on the price of oil, keep your eye on the junk bond market and keep your eye on the big banks.


With central banks propping up the stock markets now, it makes me wonder if they actually would let it economic collapse?

At least something to keep an eye on for the upcoming time.


Source:

http://www.abovetopsecret.com/forum/thread1044749/pg1