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Finance expert warns 1987-style market crash coming in last half of 2013
(NaturalNews) Not much prone to gimmicky pronouncements or over-hyped predilections, a noted financial expert says hold onto your 401k and investment portfolio, because by the second half of this year, there could be a major financial disaster not unlike the market crash of 1987.
Per CNBC:
The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem? The market ended up tanking in the second half of that year – dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.
And now, the publisher of the Gloom, Boom & Doom Report, Marc Faber, believes the very same cycle will repeat itself later this year.
‘Some of the tailwinds are no longer in place’
“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became Read more…
US stocks plunge, Dow falls more than 500 points
The Dow Jones Industrial Average plunged 4.3 percent Thursday, its worst one-day drop in more than two years, as global markets melted down over fears of another world economic downturn.
The Dow was down 512.76 points to 11,383.68; the broader S&P 500 lost 4.8 percent to 1,200.07, while the tech-heavy NASDAQ Composite plunged 5.1 percent to 2,556.39.
More turmoil over sovereign debt problems in Europe and feeble US economic data are stoking “fear that the economy is heading for a double-dip recession,” said Peter Cardillo of Rockwell Global Capital.
“The market is pricing that in,” he said.
Markets worldwide were on edge over fiscal weakness in Italy and Spain and the eurozone’s ability to contain more crisis, as the two countries’ borrowing costs surged in recent days.
Meanwhile the US Labor Department reported that weekly claims for unemployment benefits remained at a high 400,000 last week, as business and government layoffs persisted while new job creation remained sluggish.
All of the Dow’s 30 blue-chip stocks were hit by the sell-off, but losses were most pronounced in the basic materials sectors, energy and financial companies.
United States to hit debt ceiling on Monday

WASHINGTON — The debt-laden US government’s credit card will hit its limit Monday, creating a cash crunch that puts the country’s credit standing at risk as politicians battle over its long-term deficit.
Reaching the $14.29 trillion ceiling set by Congress will not have an immediate impact on government finances, because the Treasury has found about ten weeks of wiggle-room in short-term adjustments and an unexpected April jump in tax revenues.
But with Republicans refusing to increase the ceiling without massive future spending cuts, the longer the fight over bridging the country’s deficit goes on, the higher the stakes will get.
If nothing is done by about August 2, there is a chance the United States, which has always merited a top-grade credit rating, could do the unthinkable — default on its debt payments.
Few think it will get that far, as the White House leads behind-the-scenes talks on a grand strategy on the deficit — with Republicans insisting on spending cuts and Democrats demanding tax increases as well.
Still, some liken the fight to a game of chicken being played with the country’s credit standing at Read more…