A Plunge? A Correction? Or the Start of the Crash?

It is not even two weeks since my last prediction of an economic crash and the world's markets have given a loud groan and major wobble.

At least the mainstream news is not spouting all that 'recovery' bullshit because things are so obviously bad now. After this last week on world markets there is now open talk of a "Plunge" and a "Correction". My question is: ... is this the start of the "Crash"?

My prediction for a global economic crash was that this would occur by 11 November 2015. Python disagreed, and predicted there would only be a "Correction" and that this would happen next year. We are going to have to establish some definitions or benchmarks for the terms "Correction" and "Crash". There are many and varied definitions out there and, subject to the Python's thoughts, I propose the following which are my own creations:

A Correction = [A] a rapid decline in stock market prices of about 10% [B] in at least one of the world's major stock markets [C] accompanied by negative movements in at least one other major financial sector (eg commodities, bonds, real estate prices) [D] that has as an underlying cause normal cyclical events or natural market forces adjusting asset prices and [E]  is not accompanied by a recession.

A Global Crash = [A] a rapid decline in stock market prices of over 30% [B] in nearly all of the world's stock markets including all major stock markets [C] accompanied by severe negative movements in most of the other major financial sectors (eg commodities, bonds, real estate prices) [D] that has as an underlying cause systemic and incurable problems in the whole financial system and [E]  is accompanied by a severe recession or depression.

Query whether the "Correction" has already happened this past week. The following charts well illustrate the stock market drops that took place and which even the mainstream media including the Australian media is describing as a "Plunge". Of course the corporate controlled media continues to hide the underlying reasons - massive money printing and out of control global debt - so we all keep being happy and ever so trustful of the government and central banks that caused this economic time bomb in the first place.

Remember this is just the last week!!:

In terms of "The CRASH" we should remember that a stock market crash has already occured in no less than 23 countries (as distinct from a global crash). And some of these are well developed nations. I don't believe the markets in the United States, Europe and Australia can remain immune from these other market crashes, and this is just another sign that the big global crash is imminent. Just look at Singapore, Taiwan, South Korea and Malaysia.

Zero Hedge has reported: "Of course this is just the beginning.  The western world is going to feel this kind of pain as well very soon.  I want to share with you an excerpt from an article that just appeared in the Telegraph entitled “Doomsday clock for global market crash strikes one minute to midnight as central banks lose control“... When one of the newspapers of record for the entire planet starts sounding exactly like The Economic Collapse Blog, then you know that it is late in the game... ...A global financial crisis has already begun. So those that were claiming that one would not happen in 2015 are already wrong. [I think this includes Python] Over the coming months we will find out how bad it will ultimately be."

 

Comments

[Paul]

More meltdown in China and Australia today.

The ABC news tonight defined a "Correction" as a 10% drop below the peak and a "Crash" as a more than 20% drop.

[PythonMagus]

Where's the Manila index?

[Paul]

I love the sound of the rain on the tin roof.

[Thygocanberra]

https://www.youtube.com/watch?v=i4yoPi2E7lU