On January 15, 2010 – I posted the following:
“What will be the sign to usher in the next phase of this crisis? Most likely – it will be a stock market decline of 300-500 points in one day. Could be a little less or could be more - but keep your eye on any significant market decline over a very short period of time. This will be the sign that the system is teetering – and about to go over the edge. There will be no rebound this time.”
This sign happened today as the Dow Jones Industrial Average plunged 1,000 points. The market recovered later in the day to close down approximately 350. Stock market volatility increased over 50%.
I would imagine – hope – that many people take this warning and get out of the stock market - because there isn’t much time left.
Will a final market crash happen tomorrow? A week from now? A month from now? It’s hard to say – but it is clear that the world’s debt based monetary system is at its end.
I do know this – the era of Wall Street greed and corruption is over. Why did we ever put our faith in something as evil as this?
My hope and prayer is that we learn our lesson – and place our faith where it belongs – with the Lord of heaven and earth.
jg – May 6, 2010
MAY 6, 2010, 7:16 P.M. ET
Dow Takes a Harrowing 1,010.14-Point Trip
Biggest Point Fall, Before a Snapback; A Data Jumble
A bad day in the financial markets was made worse by an apparent trading glitch, leaving traders and investors nervous and scratching their heads over how a mistake could send the Dow Jones Industrial Average into a 1000-point tailspin.
At its afternoon low, the Dow Jones Industrial Average had plummeted 998.50 points, its biggest intraday point drop ever. The swing from its intraday high was 1010.14 points.
The markets were already on edge before the midafternoon collapse as traders watched televised scenes of rioting in Athens following the Greek government's approval of its portion of the European Union and International Monetary Fund bailout.
Throughout the day, markets around the globe posted big declines as investors reacted with disappointment to the failure of the European Central Bank to signal any heightened concern about the spiraling Greek debt crisis.
The Dow eventually rebounded to close down 347.80 points, or 3.2%, at 10520.32, its worst percentage decline since April 2009.
Standard & Poor's 500-stock index dropped 3.2% to 1128.15 Bond, commodity and currency markets were all roiled as investors fled from risky assets toward the safety of gold and Treasurys.
The Chicago Board Options Exchange Volatility index, or VIX, which tracks volatility in stock-index options, at one point soared 60% to nearly 40 and ended the day up nearly 32%.
Traders were stunned by the sudden sharp move.
"It was absolute chaos," said Steven Starker, co-founder of brokerage firm BTIG LLC, who said the trading in the volatile half-hour reminded him of the selloff during the market crash in October 1987.
"You sit there and stare at the screen and don't quite know what to make of it," said Mike Ryan, the chief investment officer for UBS Wealth Management Americas.
Representatives of major U.S. exchanges and the Securities and Exchange Commission convened an emergency conference call late Thursday to examine potentially erroneous trades in multiple stocks. The trades took place between 2:40 p.m. and 3:00 p.m. EDT, according to a notice from Nasdaq OMX Group Inc. Officials late in the day said any trades that were 60% away from the market price at 2:40 p.m. would be canceled.