Crash Coming?

People are claiming that today is too much like back in 1929, before the Great Depression and the stock market collapse. One prudent observer has noticed that many people, like then, are not really paying attention to the significant shifts in how the financial systems work.

People may be conditioned to think that economic events in developing countries pale in significance to economic events in the US, and may fail to see how what happens “way over there” in China would have any significant impact on their economic well-being. But how different the truth really is. I think most people even now after the February 27^th turn of events, fail to grasp why the US stock market sold off so sharply after the Chinese stock market sell off occurred first. The idea that a foreign stock market could dictate what happens in the US stock market almost offends the American sense of national pride (so the event is casually dismissed as “market irrationality”). A word of advice: you better get used to it, as there is much more of that to come. The crash is coming.

While not pleasant to think about, parallels to 1929 exist.