We witnessed something truly historic happen on
Friday. The Dow Jones Industrial Average plummeted 530 points,
and that followed a 358 point crashon
Thursday. When you add those two days together, the total two day stock
market crash that we just witnessed comes to a grand total of 888
points, which is larger than any one day stock market crash in U.S.
history. It is also interesting to note that this 888 point crash comes
in the 8th month of our calendar. Perhaps that is just a coincidence, and
perhaps it is not. It just struck me as being noteworthy. This is
the first time that the Dow has dropped by more than 300 points on two
consecutive days since November 2008, and we all remember what was
happening back then. Overall, this was the worst week for the Dow in four
years, and there have only been five other months throughout historywhen
the Dow has fallen by more than a thousand points (the most recent being
October 2008). Of course we still have six more trading days left in
August, so there is plenty of time remaining for even more carnage.
By itself, the 530 point plunge on Friday was the
ninth worst stock market crash in all of U.S. history. The following
list of the top eight comes from Wikipedia…
#1 2008-09-29 −777.68
#2 2008-10-15 −733.08
#3 2001-09-17 −684.81
#4 2008-12-01 −679.95
#5 2008-10-09 −678.91
#6 2011-08-08 −634.76
#7 2000-04-14 −617.77
#8 1997-10-27 −554.26
Another very interesting thing to note is that
the largest stock market crash in U.S. history took place on the very last
day of the Shemitah year of 2008, and now we are less than a
month away from the end of
this current Shemitah year.
It is funny how these strange “coincidences”
keep happening.
The financial carnage that we witnessed on
Friday was truly global in scope. On a percentage basis, Chinese stocks
crashed even more than U.S. stocks did. Japanese stocks also crashed, so
did stock markets all over Europe, and emerging market currencies all over the
planet got absolutely destroyed.
The following is how Zero Hedge summarized what went
down…
- China’s worst week since July –
closes at 5 month lows
- Global Stocks’ worst week since
May 2012
- US Stocks’ worst week in 4
years
- VIX’s biggest weekly rise ever
- Crude’s longest losing streak
in 29 years
- Gold’s best week since January
- 5Y TSY Yield’s biggest absolute
drop in 2 years
Even though I specifically warned that this would
happen, and have been explaining why it would happen on my website
in excruciating detail for months, the truth is that I didn’t
expect stocks to start crashing this quickly or this ferociously.
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