Editor’s Note: It is prophesied in the Bible and therefore it will come. Is it now? Don’t know but several red flag, blistering, and monetary downturns are happening in markets, banks and economies around the world. And it doesn’t look too good. No scare or fear-mongering, just solid facts. For example: look what the US-China trade war is doing to America and the markets. Then look at what the economists are saying about the Hong Kong crisis and what it could do to especially the US economy if it worsens. Please pay attention to what’s occurring around you and in the world.
Things are not normal nor are these times of the status quo. The biggest question for everyone is – are you saved and borne again through the sacrifice Christ made for you and me on the Cross?
“And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6- And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.” -Rev 6:5-6 (KJV)
The following article was originally published by Michael Snyder at The Economic Collapse Blog. (Used by permission)
A One Day Stock Market Plunge Of 48%! A Major Financial Crisis In Argentina Is Happening Right Now
By Michael Snyder – Aug 13, 2019
We are watching a complete and utter financial meltdown unfold in Argentina, and many are concerned that the panic could start spreading elsewhere. When you go into way too much debt and you just keep devaluing your currency, this sort of thing is inevitably going to happen, and this is why I am endlessly criticizing the path that the United States is currently on. If we do not reverse course, we will end up just like them. On Monday, we witnessed the second largest one day stock market decline that we have seen anywhere in the world since 1950. It is hard to believe, but the most important stock market index in Argentina actually plummeted 48 percent in a single trading session…
The S&P Merval Index plummeted 48% Monday, the second-largest single-day drop in any global stock market since 1950, according to Bloomberg. The Argentine peso also declined, losing 15% of its value against the US dollar Monday and falling further Tuesday to a new low.
This is what a financial implosion looks like, and it wasn’t supposed to happen. In fact, we are being told that there was only a .006% chance that such a sell-off would take place…
There was a 99.994% probability that an event like Monday’s sell-off in Argentina wouldn’t happen.
But it did. And it served to underscore the need for investors to protect against extreme events that look very unlikely but can have outsize impact if they do occur.
As I keep reminding my readers, stocks tend to fall a lot faster than they rise, and when some sort of trigger event causes panic things can escalate rather quickly.
In this case, the trigger event was an election result…
So much for the polls. Forgetting the electoral shocks of Donald Trump and Brexit, investors displayed herd-like faith in surveys showing that reform-minded Argentine President Mauricio Macri would run close in an Aug. 11 primary, positioning him for re-election in October. They bid up assets accordingly. The GlobalX MSCI Argentina exchange-traded stock fund (ticker: ARGT) soared 42% in the year to Aug. 9. It lost all that the day after voters behaved the way you’d think voters might in a country afflicted by near-zero growth and near-50% inflation.
Investors had been hoping that Argentine President Mauricio Macri would win re-election, but now that possibility appears to be extremely remote. In the primary vote, Macri was soundly defeated by Alberto Fernandez…
In the primary over the weekend, Macri took home only 32% of the vote, while Fernandez won 47%. The 15-point lead was much larger than investors had expected, Bloomberg reported.
Investors are now fleeing the country’s assets in hoards, leading industry watchers to question if default is on the horizon.
Argentina is considered to be an “emerging market” and many fear that this sell-off in Argentina could spark a wider emerging market crisis.
And that could definitely be the case. Many other emerging market countries are also up to their eyeballs in debt, and some investors may start dumping assets just out of fear that a broader sell-off could potentially happen.
When there is fear in the air, a lot of times rational behavior goes out the window.
At the first whiff of panic, many investors want to make sure that they get to the exits before anyone else does. And some people are already using the word “contagion” to describe what we are potentially facing…
Andrea Iannelli, investment director at Fidelity International, told CNBC’s “Squawk Box Europe” on Tuesday that it was hard to see how Argentina’s stock market and currency crash could be completely isolated.
“We are going to get a spill over (or) contagion of some sort.”
Of course all of this could have been avoided if Argentina had not gone into so much debt and had used a stable currency all this time.
—————— { END OF MICHAEL’S ARTICLE EXCERPT } —————-
Fear God and Flee from Evil!
-BPWatcher, Internet Preacher and Bible Prophecy Watchman
Pray for the peace of Jerusalem – Psa 122:6 (KJV)