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article imageOp-Ed: Nasdaq stops all trading as Economic Armageddon looms

By Eliot Elwar     Aug 22, 2013 in Business
The Nasdaq stops all trading partly because we are now on the verge of a historic economic meltdown. The Dow sinks for the sixth day as traders ponder fed exit. We are heading toward a frightening fall and punishing winter decorated in economic collapse.
The entire Nasdaq has temporarily suspended all trading due to technical issues. The exchange sent an alert to all traders after announcing that it was halting all trading "until further notice, according ENGADGET news. This was likely just a public explanation to keep nervous traders calm.
While on the heels of a tremendous rally in gold and silver, a few analysts believe we are on the verge of a historic and catastrophic global financial “meltdown” because of serious events unfolding behind the scenes at the White House and elsewhere, according to Kings World News.
The Stocks fell sharply after the Federal Reserve disclosed that its top officials were mostly in agreement that the central bank should end its massive bond-buying program. The Dow Jones industrial average lost many points, giving the index its longest losing streak in more than a year. The Dow has fallen significantly since hitting a record high in early August 2013, according to Money News. While the stock market reached its all-time high in early August, the market is heading into deep trouble as we head towards September and October which are traditionally when the massive meltdowns occurred. It appears the US and world economies are now doomed.
“This largely newsless morning, which have continued their march wider all night, and moments ago rose to 2.873% – a fresh 2 year wide and meaning that neither Gross, nor the bond market, is nowhere near tweeted out. As DB confirms, US treasuries are front and center of mind at the moment…. the 10yr UST yield is up another 4bp at a fresh two year high of 2.87% in Tokyo trading, adding to last week’s 20bp selloff. As it currently stands, 10yr yields are up by more than 120bp from the YTD lows in early May and more than 80bp higher since Bernanke’s now infamous JEC testimony. We should also note that the recent US rates selloff has been accompanied by a rapid steepening in the rate curve,” according to Investment Watch-Blog. The key to interest rates is the 10 year bonds. The interest on these bonds is rapidly rising, which is the trigger for economic meltdown.
Analysis
The American economic illusion is coming to an end. This coming financial collapse will shatter the American and European delusions about global economic recovery. It will be a dose of reality to those living in fantasy land while embracing these delusions. It appears that the time is very near for the US financial melt-down. The forces are now in play that cannot be reversed. The massive debt has evolved into a gigantic “living organism.” What is happening is the 10 year bond rate is steadily climbing with no end in sight. This is the death knell to the US and global economies. High interest rates will destroy the U.S. economy because it is based on low rates. The high rates will make it impossible for the various levels of government to repay their debt. The whole nation will look like Detroit. This will set off a chain reaction into a complete meltdown. A few analysts assess that when rates hit 3.5 to 4.0 percent this will start the chain reaction. Today, the rate is just below 3.0 percent and climbing. The US economy has become a “walking dead man” who is looking for a place to fall and impact the global economy.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
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