(By Michael Snyder) Have we now entered a time of major financial shaking? On Thursday, the Dow Jones Industrial Average was down 274 points. The was the largest decline for the Dow since May, and high yield bonds were down dramatically as well. Many are blaming the terror attack in Barcelona and “instability in the White House” for the downturn, but could “eclipse fever” also be a factor? The closer that we get to the solar eclipse on August 21st, the weirder people seem to be getting. You will
see what I am talking about below. But first let’s talk about the financial markets. I have been warning that stocks are massively overvalued for quite a while now, and it turns out that the Federal Reserve very much agrees with me… “Since the April assessment, vulnerabilities associated with asset valuation pressures had edged up from notable to elevated, as asset prices remained high or climbed further, risk spreads narrowed, and expected and actual volatility remained muted in a range of financial markets.” Even the Fed is warning that we are in a bubble, and it is just a matter of time until that bubble bursts. READ MORE
