Business

Here‘s the Chart That Has One Finance Writer Feeling ’Something Is About to Happen’

Joe Weisenthal is the intrepid finance writer over at Business Insider. He’s usually more plugged in than a Chevy Volt. So when he looks at a chart and says he feels “something is about to happen,” it’s not a bad idea to pay attention. And that’s just what he did.

Here‘s the chart from Weisenthal’s Wednesday-morning post:

Volatility Index Chart

I‘ll let Weisenthal explain what he’s seeing;

The above chart is the VIX. Sometimes it’s called the “fear index”. Whatever you want to call it, it’s a quick way of looking at how much investors are willing to pay for downside protection in the market. Right now, complacency is high, and nobody wants to pay much for “insurance.”

Once again, we‘re getting close to what’s been a floor for the index (since the crisis) and so it seems inevitable that something is going to come along and jolt everyone awake. [Emphasis added]

In other words, the lower the line on the chart, the more complacent people are. And when people are complacent, they don’t prepare. And that’s usually when something big happens to wake them up.

So what are the risks out there? Check out his post on Business Insider to see.

Comments (192)

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  • georgette
    Posted on February 8, 2012 at 10:47am

    I am an average American….who does not have the energy, much less the time to speculate.
    If someone has specific information that is doable , that can actually help the average hardworking American….please post it………….people say they have info–people say they want to help the people… “impending doom” reports do nothing ……….. unless we hear specifics that can actually make a difference for the guy on the street and not just “insiders”….., then I guess our role is …….. “collateral damage.”

    Report Post »  
    • Unix
      Posted on February 8, 2012 at 10:53am

      here is some information for ya

      usdebtclock.org

      tick tock tick tock…

      Report Post » Unix  
    • ChiefGeorge
      Posted on February 8, 2012 at 11:04am

      Heres the most valid, truthful information out there. Its called the Holy Bible. Its all there and its not good for those who reject God, unless you stop speculating and receive Christ as Lord.

      Report Post » ChiefGeorge  
    • floridaborn
      Posted on February 8, 2012 at 11:25am

      I see where you’re coming from, Georgette. I cannot afford to buy gold or land. All I can do is stock up on food, supplies (first aid, medicines), pay off my bills and save my (I know, possibly worthless) money…..feel pretty helpless sometimes too.

      Report Post »  
    • salvadordaly
      Posted on February 8, 2012 at 11:43am

      Here you go http://www.thedailycrux.com/content/9820/Porter_Stansberry

      Report Post »  
    • msconstrue
      Posted on February 8, 2012 at 11:48am

      i hear ya, georgette and its sounds like you’re doing just what you should be doing. i always try to ask myself this question, ‘what would i do if’….then prepare for that scenario, then move on to the next scenario. if you try to look at everything at once, its too hard to get your head around……one step at a time.

      Report Post »  
    • netmail
      Posted on February 8, 2012 at 11:57am

      Fear and complacency results from the cancer of corruption that is now obvious to everyone over 7 years old. It wasn’t so obvious to past generations that most everything is rigged. I think it is. Fewer people will play the money games today and fewer people can. In God we MUST trust…for there is very little trust left in this world. (and the lack of trust is completely justified)

      Report Post »  
    • acovenantinblood
      Posted on February 8, 2012 at 12:19pm

      I’m buying a new guitar!

      Report Post » acovenantinblood  
    • NoLimey
      Posted on February 8, 2012 at 12:22pm

      Buy some TVIX

      Report Post » NoLimey  
    • SgtB
      Posted on February 8, 2012 at 12:51pm

      Here is a tip, stock in America’s largest natural gas producer (Chesapeake, CHK) is poised for a gain of about 50%. If you want to make a 50% return in under a year with a dividend to boot, then buy some CHK stock because it is priced to sell due to low demand during this year’s mild winter. They have already cut production of dry natural gas wells (read, wells containing only methane / natural gas) in favor of wet wells that contain natural gas as well as other petrol products like propane and light oils. The demand for these other products is always great due to their industrial applications and their stock price is poised to rise accordingly in the coming months.

      Buy now and sell at ~ $33-35. $35 is the TREFIS price and is about what the stock topped out at last time it went up. Oh, and Chesapeake is an American owned company based out of Oklahoma city. They are not going to go anywhere and your investment could spur growth in the petroleum industry around Oklahoma, Texas, and anywhere else CHK owns well leases.

      Report Post » SgtB  
    • Captain Crunch
      Posted on February 8, 2012 at 12:54pm

      @acovenantinblood

      I just bought a new violin. I plan on fiddling while the stock market burns. Nero sucks!

      Report Post »  
    • techengineer11
      Posted on February 8, 2012 at 1:12pm

      SgtB: HA! I’m actively looking for NG stocks to short! Most will go bk within 2 years including CHK! No way they stay afloat while NG heads toward 1 mm/btu.. I‘m actually in the cross heir as well because I’ve owned two coal companies for ages which rely on NG to set the spot prices for MWs.. It’s killing me but the last thing in this world I want to do is own a NG producer. I hope that you are not serious.

      Report Post » techengineer11  
    • WAKEUPUSA2012
      Posted on February 8, 2012 at 1:31pm

      The globalist are getting ready to carry out false flag terror attacks aginst the American people. Our government has been hijacked. The NWO is very real.

      Report Post » WAKEUPUSA2012  
    • Thomas Paine Jr
      Posted on February 8, 2012 at 1:50pm

      George,

      Below is a 3 stage strategy:
      1) Short term: this can be accomplished realitively quickly
      a) Store food (1 year supply); medicine, personal protection “beans bullets and band-aids”
      b) Reduce/eliminate debt
      2) Mid term: this takes more planning and money
      a) Small acreage — enough to garden (fruit, nut trees too), and raise some livestock (chickens, sheep, cattle)
      b) Dig a well — supply of water for yourself, animals, and garden
      3) Long term: this piece may take several years
      a) Energy — wind and solar solution (currently, it’s not cost affective; so have it cover the essential energy needs
      b) Biodiesel — learn to make and use this form of energy

      Sounds crazy? If you use this 3 phase strategy, what is your downside risk? In the short term, you’ll have food to guard against an economic loss (job loss, inflation, severe storms, etc). In the mid term, you’ll be more self sufficient and have access to healthy home-grown food. In the long term, you’ll increase your self sufficiency and safe guard against power outages etc. Your upside protection…well…you can figure that out yourself.

      Report Post » Thomas Paine Jr  
    • WAKEUPUSA2012
      Posted on February 8, 2012 at 1:53pm

      What you thought the TSA the DHS and the rest of the police state was for crazy muslims? For russians maybe? lol no. Its is for the American people. The eliets have contempt for Americans. They want us to suffer. The 08 collaspe was just the begininng. They want to get rid off people who can “skin a buck and run a trout line” you know take care of themselves. They hate that. They wanna kill conseratives, libertarines, soverign citizens. So get ready everyone. DO NOT TRUST THE MSM

      http://www.infowars.com/freedom-hating-globalists-continue-attack-on-constitution-and-liberty/

      Report Post » WAKEUPUSA2012  
    • DaniL
      Posted on February 8, 2012 at 1:54pm

      Really, people. The same chart can easily mean both pending disaster and pending winfall…see housing crash disaster vs. gold price skyrocketing winfall. Someone always, always loses and someone always wins, depending on where you’re positioned. Keep calm and carry on…

      Report Post »  
    • Ghandi was a Republican
      Posted on February 8, 2012 at 2:13pm

      We are $16 Trillion in debt with another $110 TRILLION in unfunded liabilities. Europe is in ruins and we have a Marxist Alinsky radical in the White House. What specifics did you need AGAIN?

      Report Post » Ghandi was a Republican  
    • GhostOfJefferson
      Posted on February 8, 2012 at 2:15pm

      “libertarines”

      Ah, yes, the vaunted branch of combat libertarians who are stationed aboard every Navy ship. :)

      Report Post » GhostOfJefferson  
    • WAKEUPUSA2012
      Posted on February 8, 2012 at 2:26pm

      libertarians*

      My spelling can be off from time to time, between government schools and bpa it happens. I apologize

      Report Post » WAKEUPUSA2012  
    • Hollywood
      Posted on February 8, 2012 at 2:44pm

      I fully agree the average person, particularly with a full time job, does not have the time to Speculate.
      I started doing my own on line direct Investments[buy and hold,get dividends etc] It is VERY time consuming,and I am fully retired. DO not believe someone who tells you they will do it for you. The stock market is Presently a CASINO. Insider trading, price supression, of some stocks{precious Metals] etc, make it well nigh impossible NOT to lose money. I do what is called Day Trading[actually hourly/minute trading] as I have been forced to. I can barely TIME manage the 3 accounts I have, never mind doing mine and ANYONE elses. If you are looking for long term security, I suggest you invest in buying a DVD called The Daniel Project. This DVD will provide you with a WAY of ESCAPE from the financial catastrophe etc, coming our way. I have NO vested interest in this DVD,just a sincere desire to help.
      Maranatha

      Report Post » Hollywood  
    • Brooke Lorren
      Posted on February 8, 2012 at 3:23pm

      I think that a lot of it is mental preparation. Me and my family don’t have very much, but we’ve been preparing. It doesn’t take too much to get a little extra every month in the way of food; pick up a little extra when it goes on sale. My local Wal-Mart carries #10 cans of freeze dried food even. If you can get one can a month you’re still better off than most people.

      In addition, you can learn skills. I picked up a pressure canner the other day and canned 9 quarts of spaghetti sauce when someone gave me a box of tomatoes. I can repair clothes for barter. I have a book that’s really good that teaches some basic skills that many of us have lost. You may not have much time to learn stuff now, but if you get some of these books in hardback, you might be able to pore over them if the time ever comes. If you have a Kindle, then that might not work after an EMP, unless you store it in a Faraday cage.

      A big part of it though is mental. Realize that the life that you have right now could change overnight. We could lose it all. Then when it happens, it won’t be so much of a shock, and you’ll be in a better position to take action. There will be a lot of people out there that will be in so much shock that they will be practically immobilized until someone comes along to tell them what to do.

      Report Post »  
    • kathleenlee
      Posted on February 8, 2012 at 3:28pm

      Try to buy extra food staples, toilet paper, bottled water, extra medicine bandages and alcohol, don’t forget extra toothpaste and if you can stockpile some antibiotics and sulfur drugs, that would be good too…wood if you have a fireplace/stove…guns/ammo…prepare prepare prepare…batteries, candles and if you can get a transitor radio..and then make a Farraday cage…instructions online…cheap and easy…please prepare

      Report Post » kathleenlee  
    • objectivetruth
      Posted on February 8, 2012 at 3:49pm

      Work pay off your bills save what you can.Plan for normal diasters and add extra if possible.By normal diasters I’m talking weather events.Hone up rusty or little used skill sets.Learn them if you don’t already have them.When the impending man made diaster happens it will still be a shock on various levels for most of you.Try to mentally prepare for it,not that you can completely.Just remember that practice makes perfect for all of the above.Remember that there are some people including myself that won’t truly suffer a shock the way most of you will.No we aren’t brain dead nor superheros.The truth is there isn’t much left that can hurt us or shock us on any level at any time.Anger us yeah.If you need resilence help, just ask ,we will do what we can.

      Report Post »  
    • guido.cavalcanti
      Posted on February 8, 2012 at 4:07pm

      @ ChiefGeorge I wholeheartedly agree with you.

      Report Post » guido.cavalcanti  
    • jhaydeng
      Posted on February 8, 2012 at 4:58pm

      AGREED! Fox Biz just had a guy on saying the vix was continuing to go down meaning that a bull market was here!

      Report Post »  
    • Jim S
      Posted on February 8, 2012 at 5:33pm

      ..it‘s article after article like this that makes me question why I don’t just buy the national enquirer and go to the alex jones site…maybe,possible,might…all = I don‘t know and why would I read something that doesn’t know…guesses…the market goes up and down…all the losses from 2008 have recovered…UNLESS you sold because some gloom and doomer said the end is here…

      Report Post »  
    • Wilbur Longshank
      Posted on February 8, 2012 at 5:58pm

      Lock and Load.

      Report Post »  
    • absolutelynot
      Posted on February 8, 2012 at 6:36pm

      When the Vix is high its time to buy , when the Vix is low its time to go……
      Wall street follows this probverb religiously and yes it is low so GO

      Report Post »  
    • crackerone
      Posted on February 8, 2012 at 8:00pm

      It wasn’t that long ago that we where having 500 point daily (hourly) swings in the market. Now, Joe says everyone is complacent? There is heavy resistence around the 13000 mark on the dow. The only analyst named Joe, that I have ever heard of, is Joe Granville, and that analyst thingy didn’t work out too well for him and his clients. All’s I know, we haven’t heard the last of Israel!

      Report Post »  
    • Axe
      Posted on February 8, 2012 at 8:28pm

      If you wait for specifics it will be too late. If you’re afraid to speculate, you’re doomed to get hit hard or in the best case break even. If you aren’t willing to spend a little time investigating, you will never know for sure or end up with any confidence at all. If somebody could guarantee what you’re apparantly looking for, there would be no reason for anybody to worry about it. If you aren’t willing to risk anything, you won’t ever gain anything.

      You don’t have to go all in, but it’s wise to spend at least what you can afford to lose, with the expectation of losing it, to protect yourself more than a zero amount. It takes less effort than you think. Half-hour every day or so for a few weeks or so and you’ll learn enough to be more confident about it.

      I suppose in the end it all depends on how important it is to you. Only you can decide that for you. It’s just the way it is.

      Best of luck to you.

      Report Post »  
    • Formula382
      Posted on February 8, 2012 at 8:39pm

      Copatriots, that’s quite a bold prediction…For one, the Vix index is NOT a fear index, it’s a volatility index, hence the “V” in Vix. Secondly, volatility doesn’t correlate to fear as much as it does moves down in the market. There is such a thing as upside volatility, the VIX however doesn’t go up when Volatility is to the upside, rather to the downside. Furthermore, you can’t buy the VIX. You can do what I do, and use it as a hedge to you long equity exposure by purchasing Call options on the VIX. So, right now, I’m hedging my longs by owning vix options.

      As for your prediction, I too am expecting something unexpected, or should I say expected to come out of Eurozone i.e. Germany pulls out, or more likely, when Greece pukes out, perhaps Italy follows. If that were to happen, it would devastate markets. Problem is however, that the ECB, via the IMF is ramming liquidity into the Euro area and hence has created some stability and my guess is “kicked the can further”. Everyone is expecting a collapse in the markets and truthfully, markets can stay irrational longer than you can stay solvent.

      Be flexible, nimble and stay hedged.

      Report Post »  
    • hcartexas
      Posted on February 8, 2012 at 8:41pm

      NG stocks are good to own. CHK, New Field, Apache, are all Financially strong, stable companies. New Field…for instance has ZERO debt… tons of cash on hand, and ALOT of wells..NG, and Oil…..do some research….Chesapeak, has been around a long time, and not going ANYWHERE…..Okies and Texans, know the oil business….

      Report Post » hcartexas  
    • Speakin'mymind
      Posted on February 8, 2012 at 8:59pm

      I’m with Georgette…Let’s see the last 100 years for the trends…just the last three doesn’t tell much.

      Report Post »  
    • MeMadMax
      Posted on February 8, 2012 at 9:18pm

      I agree with Unix.
      The debt clock paints an ugly picture, and a nuclear bomb waiting to go off…

      What we are seeing now is death throes….. We are like the titanic, when the bow has broken off, people are thinking that we are saved because the “stern came back almost level”…… only thing is, the ship is doomed, we are just waiting for the rest to go under……………………………

      Report Post » MeMadMax  
    • jzs
      Posted on February 8, 2012 at 9:24pm

      That’s quite a prediction, “something is about to happen.” With a prediction like that, you can hardly go wrong.

      Report Post » jzs  
    • seeker9
      Posted on February 8, 2012 at 10:38pm

      JZS
      You’re right with that statement. Timing is everything.
      Didn’t know there were so many investors here. Lots of contradictory advice. That’s normal. Nat Gas is low, but it will not go to zero. Question is how low is low and when will it turn? More utilities switching from coal to NG. Will EPA ban fracking? Does BHO want high energy prices to boost his green ideology? Lots of risk IMHO.
      Stay diversified and hedged. The most money is made in uncertain markets.

      Report Post » seeker9  
    • shogun459
      Posted on February 8, 2012 at 11:47pm

      Keep your gas tank full.
      Fill up all your propane.
      Stock up on food storage.
      Prepare.

      Report Post » shogun459  
    • shogun459
      Posted on February 8, 2012 at 11:49pm

      Silver
      Silver
      Silver
      http://www.goldline.com

      Report Post » shogun459  
    • loriann12
      Posted on February 9, 2012 at 6:52am

      @floridaborn

      That’s where we are….stocking up and turning extra money into shelf stable food. I recently saved a crop of green tomatoes before they froze and made green tomato relish. I invested in canning jars. When I have red tomatoes, I can stewed tomatoes. Every chance I get, I buy food. We just recently took out a small loan to have our windows redone in our house. I know the price of gas and electric is only going to go up, and we had those single pain, aluminum framed windows from the 70′s. If it gets rough and we can’t make the monthly payment, it will only ruin our credit…what are they going to do, repossess the windows? It’s a personal loan, not tied to the house.

      Report Post »  
    • loriann12
      Posted on February 9, 2012 at 6:59am

      @Brooke Lorren

      You are so right about learning skills. I’m 48, knit, crochet, sew and quilt. I can make/alter clothes or make a quilt from scraps. If I have to, I can do it by hand, but I prefer my sewing machine. I recently decided every time I can afford it, I’m picking up enough sock yarn to make a pair of socks. You’d be amazed what can get scarce. As long as I can knit, I’ll have socks.

      Report Post »  
    • RetroHousewife
      Posted on February 12, 2012 at 2:49pm

      GB has been dishing out advice for awhile now – if you can afford the $99 to sign up for GBTV, that is your first step. To sum it up, get your personal, financial and spiritual houses in order. Do what you can to help others do same, or just help. Have enough food etc. on hand to take care of you and yours, then if you can, get a little more to help others. Finally, start thinking for yourself – we all have it in us – many of us just got lazy and forgot how. Pray if you do that. Resolve to be part of the solution and not add to the problem. Do unto others…

      Report Post » RetroHousewife  
    • ksdvm86
      Posted on February 12, 2012 at 5:00pm

      Georgette: what we regular Americans can do with this information is to be sure that if you are invested in the market that you have protection with stops on any stocks. If you have a lot of retirement money in mutual funds then you should talk to your advisers about risk management…..unless you really understand the market forces it is best to not be in the market with money that you cannot afford to lose…..be cautious, no one is going to look out for your best interests as much as you will…the everyday investor is who gets really hurt when the market corrects….

      Report Post » ksdvm86  
    • 21stcenturypeasant
      Posted on February 13, 2012 at 12:07am

      Georgette.I’m also an average person of limited means. Here is what I am telling all of my friends and neighbors who also have no stacks, gold or dehydrated food stored away. 1 Plant a garden this year as big as you can handle then learn how to can the harvest when it comes. 2 Buy basic food reserves. Beans and rice make a complete protein and enough to get through any crisis is within your means. Store it in 5 gal. plastic buckets in a plastic bag. It will not last 25 years but will last through the coming crisis. You can get the products in 50 lb bags fairly inexpensive. 3 Buy some oats the same way and store them in buckets. 4 When you think you have enough add some spices to season the rice and beans (it’s better to eat boring meals and at least eat, than worry about how fancy the food tastes). 5 Have a gun and ammunition, learn how to use it. It can be an inexpensive 22 if you know how to use it effectively. 6. Have a first aid kit, learn how to use it. 7 Add salt and sugar. 8 Add water barrels if you don’t have reliable access to water. 9. When you have basics for yourself and family add more to take care of friends and neighbors, It’s better to feed people than fight with them. 10 Pray that you have the time to prepare and the ability to stay low and wait out the problem. You may need to stay out of harms way for weeks or months. You are not alone, choose who knows what you are doing carefully.

      Report Post »  
  • Daveed
    Posted on February 8, 2012 at 10:47am

    “He answered one of them, `Friend, I haven’t been unfair! Didn’t you agree to work all day for the usual wage? 14 Take your money and go. I wanted to pay this last worker the same as you. 15 Is it against the law for me to do what I want with my money? Should you be jealous because I am kind to others?’
    This is from the New Testament: Vineyard Parable: Even Jesus taught that an individual has a right to do with his money as he feels and people who think the opposite are jealous, these are the evil despots who only like to steal or redistribute other people’s money. Sound like anybody we know, the anti American revolution happening now with in our government?

    Report Post »  
  • TyrannyNoMore
    Posted on February 8, 2012 at 10:40am

    If you think this chart is scary, check out this one:

    http://barnhardt.biz/

    Report Post » TyrannyNoMore  
  • TheTrumanShow
    Posted on February 8, 2012 at 10:40am

    Hey, Blaze.

    Where did the Sotomayor/Sesame story go?

    Did someone tell you to take it down???

    Report Post »  
  • WTP
    Posted on February 8, 2012 at 10:30am

    Does anyone know what a lemming is ???? Think about it…..

    Report Post »  
  • Tretka
    Posted on February 8, 2012 at 10:28am

    I have recorded the market ending numbers on the dollar, gold, silver, certain other commodities, oil, and lately the ending Dow numbers since November 2011. Why? because for the last four years the market has behaved the same strange way for the first quarter and every year with the exception of 2011 we ended up down for the year.

    As of yesterday:
    The dollar – is down $2.16 since January 7, 2012

    Gold – is up $131.00 since January 7, 2012

    Dow- has gained 224 points since January 30 ( I started tracking when I saw the bump happen at the end of January).

    Watch the dollar…and read this about the gold volume:

    http://www.caseyresearch.com/gsd/home

    Banks are shifting gold and silver-not paper.

    Report Post » Tretka  
    • NoLimey
      Posted on February 8, 2012 at 12:27pm

      How can the dollar be down more than two dollars?

      Report Post » NoLimey  
    • TakeBackAmerica
      Posted on February 8, 2012 at 1:01pm

      The traded currency, not the actual dollar

      Report Post »  
    • copatriots
      Posted on February 8, 2012 at 1:34pm

      What he means is the dollar is down as compared to other currencies, like the Euro or the Japanese yen or Canada’s currency. So if you were to go to another country, the U.S. dollar would convert to less of that country’s money. In other words, the dollar is decreasing in value. Think of it as $100 on Jan 7th is only worth $97.84 today.

      Report Post »  
  • 70mach
    Posted on February 8, 2012 at 10:14am

    You cant eat Gold and silver and when people are running around looking to get food at any means you best not be out on the road trying to buy some:)Prepare and dont let anyone except those you want to share with know.Invest in security whatever that might be for you?camaras/guns/barbwire/etc.Their getting us ready for the next terrorist attack so they can steal some more of your freedom!

    Report Post »  
    • Twinspeedr
      Posted on February 8, 2012 at 10:32am

      Whatever, dude.
      If you are trying to prepare for the “Mad Max scenario” where Gold and Silver are worthless, you are letting your imagination run away with you. There are 7 billion people on the planet that will keep pushing toward something better even when the bad times befall us, (and they are about to). But, worrying about a total global collapse is pointless, you cannot prepare for that. So, to everyone else; keep moving your wealth into physical precious metals as you see fit, I think it is the only safe place these days. Oh and don’t forget to couple that with a sizable investment in case-hardened steel and lead.

      Report Post » Twinspeedr  
    • doomytram
      Posted on February 8, 2012 at 10:33am

      They are getting us ready for Orwell’s 1984 and another terrorist attack. We are, and have been, on the road to totalitarianism for many decades. The democrats and especially the racialist‘s are following Orwell’s Animal Farm model.

      Report Post » doomytram  
    • Tindalas
      Posted on February 8, 2012 at 11:55am

      @Twinspeedr

      No he is right about storing foods and other essentials that no amount of gold will buy when things do collapse. Despite the value of gold and silver you cannot eat it…and if things are hard enough you will not be able to trade for those things that you truly need. And if you delude yourself into thinking that you are the only stocking up on “steel encased lead” guess again.

      What should be said is to include in your stores,precious metals and other valuable commodities…In the days following the end of WWII oil, was worth way more than gold as were other food stuffs that were hard to come by.

      Report Post » Tindalas  
    • Dismayed Veteran
      Posted on February 8, 2012 at 12:11pm

      If you are facing the “Mad Max” moment, currency will be cigarettes. Power will be food. Survival will be guns and ammo.

      Report Post » Dismayed Veteran  
    • AxelPhantom
      Posted on February 8, 2012 at 12:49pm

      In any disaster scenario, different things will have value at different phases. In a non-immediate economic collapse (not completed overnight), cash will have value for a short time, gold and silver will have value for a time mostly with institutions like banks (paying a mortgage or car loan), then things like cigarettes, booze, deodorant, soap, toilet paper, feminine supplies and chocolate will have value. If it all falls apart (anarchy) and supply lines are cut off,by a situation where value cannot be establisherd (like extreme volitility in currency) nothing but food, medicine, ammunition, skills (like agronomy, medical knowledge) and purified water will have value.

      You must have some type of organized trade to establish value. If trading involves a significant risk to your life, are you going to go trade for something you don’t need to survive? For most people the answer is no; so things like gold and silver, booze (although it does have first aid uses) etc. will have value for a brief period on the way down and on the way back up.

      Ammo however will always have value, as in the right hands one bullet can feed you for a week.

      Report Post »  
    • Tindalas
      Posted on February 8, 2012 at 3:39pm

      Dismayed and AxelPhantom both bring up valid points. My post however was merely designed to point out that precious metals themselves are not the end all be all in a environment of anarchy if you will. It is the well balanced preparedness package that will a person family or group through any disaster or other survival type situation. This does include precious metals but it is the items that will disappear first that will most valuable as the situation continues. Skill sets definitely play a large part in “acquiring” that which you do not have, as well as preserving what you do.

      Report Post » Tindalas  
  • Tombstone
    Posted on February 8, 2012 at 10:12am

    Consumer spending is up because all of the people who have paid little or no income tax have gotten their $6,000 and $8,000 “REFUND” checks from the IRS. You can find these people at your local WM buying 60″ flat screen televisions and at your local Nail shop getting their 3 inch nails and pedicures. Meanwhile, those of us “working” people get pumped for more and more money out of our pockets.

    Report Post » Tombstone  
    • cemerius
      Posted on February 8, 2012 at 10:17am

      Nice analogy but, the reason more is being spent is that things on average are 15% more expensive across the board! Wish I could get an income tax return since all I am trying to do is to not have to pay them more than what I already have……

      Report Post » cemerius  
    • Tombstone
      Posted on February 8, 2012 at 10:28am

      If they are trying to agitate and discourage me, they are doing a great job!
      CharlieVictorMikeAlphafloridaDOTorg

      Report Post » Tombstone  
    • objectivetruth
      Posted on February 8, 2012 at 3:58pm

      Its worse than you think.I wish I could share with you how I know.I can’t.If you have followed any of my posts you will know I’m telling the truth in this statement.Normally I back this type of info with reference points.I can’t, get the drift.

      Report Post »  
  • jakartaman
    Posted on February 8, 2012 at 10:10am

    Who are the nuts that keep Obama in the High 40″s %. – It is scary to me that this enemy of the state might get voted in for a second term by minorities, freeloadeds, white trash and communist.
    enough is enough
    I predict if he does get in you will see a civil war!

    Report Post »  
    • sposilovich
      Posted on February 8, 2012 at 10:23am

      And if he DOESN’T get in, we’ll have race riots hit the streets of all of our major cities. Look what’s happened in the past because of SPORTS EVENTS. And even in the case of a team’s WIN (1992 Chicago Bulls)…the city still went up in flames!!!

      Report Post »  
    • TakeBackAmerica
      Posted on February 8, 2012 at 12:55pm

      Yes, it is pretty depressing to me. Are there really that many far left wing nuts, blacks, jews, gays, hispanics, and young idiots to give him the election? God help us if they do.

      Report Post »  
    • AmericanFightingMan1
      Posted on February 8, 2012 at 2:26pm

      Sadly, there is a hefty population out there that is salivating at taking out “the man”, which is basically so-called “europena invaders”. Clueless caucasians don’t see the hatred directed at them. It has been a seething hatred amongst a certain segment of the population since our nation’s founding.

      Clearly, not all of the traditional demographics supporting Obama harbor this hatred, but enough do. Couple them with the clueless and guilt-ridden caucasians, and you have Obama elected. It doesn’t matter how inept Obama is; his supporters are about hating the targeted class (ie., caucasians).

      Report Post » AmericanFightingMan1  
  • SpankDaMonkey
    Posted on February 8, 2012 at 10:03am

    .
    The Jolt we need is to get rid of our Magic Black African American President…………….

    Report Post » SpankDaMonkey  
    • wewantchillywilly
      Posted on February 8, 2012 at 10:23am

      it is the mind of obama’s liberalism, not the color of his skin, that are ruining the country.

      Report Post »  
    • iroquois
      Posted on February 8, 2012 at 7:18pm

      He is still black. What is your problem.

      Report Post »  
  • LANE131
    Posted on February 8, 2012 at 10:02am

    In the USA/Canada DRILL OUR OIL OIL NOW!!! Keep it for North America, and the same with natural gas, and coal, North America ia a wash with energy lets use it to help get us out of this mess…and CUT REAL SPENDING!!!

    Report Post »  
    • GeorgieJo
      Posted on February 8, 2012 at 11:17am

      Obummer has to appease the Greenie-Environmental Moonbats—-IF he is re-elected—-THE pipeline will be built and the UNIONS will fall at Obummers feet.

      OMG in 2012

      Report Post »  
  • msconstrue
    Posted on February 8, 2012 at 9:49am

    i think “economist” is right on the money….and folks would be wise to get themselves as liquid as possible…if you cant afford to pay for it, dont buy it.
    at the very least, we are headed for super high inflatation…..and the very worst, well who knows exactly what that could be….all i know is i’m doing what ever it takes to be ready.

    Report Post »  
    • techengineer11
      Posted on February 8, 2012 at 10:08am

      “According to Wikipedia, computers drove about a third of all trading in 2006. In 2009, it was estimated that 73% of all U.S. equity-trading volume was driven by high-frequency trading.”

      Wall St has one purpose and one purpose only… To separate the fool and its money! It is run by a foreign and extremely corrupt criminal element which makes the likes of Ammadinejad, Sadaam, Lenin, Hitler, Stalin, and Mao seem tame.

      One word comes to mind. BEWARE!

      Report Post » techengineer11  
    • loveoursoldiers
      Posted on February 8, 2012 at 10:25am

      You mean the gubmnt won’t bail us out? Just bail out fat cats so fat cats can get him re-elected ?
      Talk about on the backs of the little people
      This is OBAMA policy that he says is somepne else’s.. sound familiar?
      How much does it take for people to see this fraud for what he is.. a liar and an anti-american Kenyan?

      time to change our conversations, time to change our history, time to change our traditions
      what the eff did people think she meant?

      Report Post » loveoursoldiers  
    • msconstrue
      Posted on February 8, 2012 at 11:26am

      Beware is a good motto……the tension in society has become palpable and something eventually has to give. whether its financial, political or something other, there will be a crash….and it will be devastating.
      people need to be tight with in their families and right with their God. the status quo is about to change!

      Report Post »  
    • LIBS-ARE-DINGLEHEADS
      Posted on February 8, 2012 at 4:50pm

      I’ll add this to the mix. In debt? GO BANKRUPT. Give yourself you’re own bailout. Paying off debt is fine – under normal times. These are not normal times. Why give the banks and financial institutions more (fiat) money anyway?

      They got bailed out. You should too.

      Besides, having a “great credit score” means zilch if the end of days is coming. Better to use that money for food, guns, ammo, water and essentials.

      Report Post » LIBS-ARE-DINGLEHEADS  
  • Locked
    Posted on February 8, 2012 at 9:46am

    So no one else needs to contribute to Business Insider’s clicks:

    “What‘s funny is that it’s not hard to see the risks out there: There’s Greece. There’s Portugal. There’s Syria. There’s the fact that in a few weeks, the tax cut extension is about to expire, and Congress is supposedly deadlocked on how to do it (though of course everyone’s betting on a last-second save).”

    So, we have a person making a vague prediction about several topics that we’ve been worried about for years. Nostradamus he is not.

    Report Post »  
  • veruca salt
    Posted on February 8, 2012 at 9:45am

    Lucky for you, Downthewell, you can protect yourself from (insert impending disaster du jour) by buying valuable gold. It’s just one easy click on the banner at the top of the page. Now, run along and finish that bomb shelter and don’t forget to stock it with Glenn Beck brand MREs. Delicious and nutritious!

    Report Post »  
  • BobtheMoron
    Posted on February 8, 2012 at 9:43am

    The SHTF scenario is likely to become truth on any given day, Europe is trying to tax themselves out of their financial hole while only barely reducing government spending (same thing Obamacrats want to do here) and it can’t work. The government can’t take money out of the private sector and expect business to get better. I am certain that these Socialist/Progressives know that they are causing a collapse and are doing it purposefully. Germany wants to collapse Europe. This is the beginning of the 4th Reich or he funtional equivalent. Germany will, finally, have conquered Europe.

    Report Post » BobtheMoron  
    • jhrusky
      Posted on February 8, 2012 at 9:48am

      The only way we are ever going to get out of this is if a leader makes him/herself known and gathers a large enough following so WE THE PEOPLE rise up and take our Democratic Republic back. There is no other way we are going to put a stop to the nonsensical size and appetite of the current government as an unorganized militia will be easily defeated. The danger in the only possible scenario that will help us is that person will have a huge amount of power, and we all know what absolute power potentially does.

      Of course, while writing this, I thought of a second way to fix this … God intervenes. I don’t believe He will … until it’s time for the Second Coming at which time none of this will matter.

      Report Post » jhrusky  
    • copatriots
      Posted on February 8, 2012 at 11:35am

      Agree to both!

      JH, don’t rule God out. : ) We need leaders who truly believe in national repentance and revival. If we as a nation were on our knees and truly seeking His will, I have no doubt this country would yet again receive His blessing. So long as we continue down the anything-goes immoral path we have been on I don’t see national repentance in our future.

      In that case, the Biblical end times scenario is becoming ever more likely. Even so, come Lord Jesus.

      Report Post »  
  • Unix
    Posted on February 8, 2012 at 9:36am

    Broker0101, 001, or should I just call you zero? You bash ol Glenn every time you come on here, and you know you are wrong every time. Glenn has been right most of the time, so how do you reconcile your daily ignorance? Go play with your dolls, that is more up your alley.

    Report Post » Unix  
  • Economist
    Posted on February 8, 2012 at 9:35am

    I think people should be shorting the long bonds in the near future. Meaning interest rates are going up soon. The FED is soon out of bullets and are just talking like they have unlimited power. I am not sure if they can keep both the short and long rates down thru 2014 with more printing. Their balance sheet is too far extended and over leveraged. Once the Europe bond vigilates are done with Greece and the rest of the PIGGS, we are next. Maybe 1 to 2 years? And when it happens, it will make 2008 look like a walk in the park. This will unlease a series of unfortionate events in the next few years:

    We are looking at this:
    1) 8%-12% Mortage rates – How much will your house be worth with these rates?? Housing crises 2.0?
    2) US gov. debt interest payments will go from 18% of the tax revenue to close to 50%. Meaning HALF of our taxes will be just to pay interest on an INCREASING debt. Solvancy is gone if rates go up; the US will be FORCED to cut MAJOR if rates go up.
    3) US will be forced to withdrawl 1/2 of the Military spending, cut payments in 1/2 to Social security retirees, Cut payments in 1/2 to Medicare recipients. No more unemployment checks will go out.
    4) There will be no time for other countries to react and a precipitous withdrawl of Military will be an opening for IRAN/China/Russia to sieze control of the Energy rich areas of the world.
    5) Dollar and Euro will continue to drop and gas prices will be north of $8 gallon.
    6) Consumer good prices -incr

    Report Post » Economist  
    • TJeff1
      Posted on February 8, 2012 at 9:43am

      Yes interest rates are destined to skyrocket soon. This will be very very bad news. Some of this will happen so suddenly that most people will be caught of guard. China is going to have to start spending its savings on their country soon with the coming collapse there. This will push rates up here and neuter the FED.

      So yes this is a good prediction of our future.

      Unfortunately most politicians are clueless on how bad it is and how bad it will get when the bottom drops out. We need to cut spending now… Not just the rate of spending like most politicians are proposing. We need to neuter the FED now not let it propagate these policies that got us into this mess.
      .

      Report Post »  
    • broker0101
      Posted on February 8, 2012 at 9:50am

      ECON, Now, why don’t you explain to these fine retail investors HOW, exactly, they may “short the long bonds”?
      I know, do you?

      Report Post » broker0101  
    • Dcjones
      Posted on February 8, 2012 at 9:52am

      These videos are eye opening. This is the number one thing you should do today to learn how to protect your future in the upcoming crash. Most people are clueless about what is coming.

      http://www.chrismartenson.com/crashcourse

      Report Post » Dcjones  
    • Dcjones
      Posted on February 8, 2012 at 9:57am

      An easy way to short would be to buy ETF shares of something like the ultra short lehman 20 year or ticker symbol : TBT

      Report Post » Dcjones  
    • Economist
      Posted on February 8, 2012 at 10:02am

      I would go for something that does not use leverage like; TBF (don’t buy yet but keep a close eye on rates in the next few months)

      Report Post » Economist  
    • Thevoice
      Posted on February 8, 2012 at 10:15am

      Again the trigger to all this was the decapitation strike against us 9/11. And weak leadership not focusing first on destroying our enemy to victory. The one wild card in this, is our enemy is fully alive and functioning. They will strike at the moment they see the opportunity to finish the job. “New age progressive Communism” better know as the Obama administration is leaving us economically weak and in a tattered political environment. Honestly economists should look close at their collection of numbers just prior to 9/11 . Maybe they could pick up a tell as to when. But if there was a tool to bet at some point within the next six months its all going to hell. I would lay a bet down on that table.

      Report Post » Thevoice  
    • LIBS-ARE-DINGLEHEADS
      Posted on February 8, 2012 at 4:52pm

      Economist: In theory, you’re right. The problem is the Fed KNOWS it can’t raise interest rates. The standard now as to price interest rates in barrels of OIL – not the fiat greenback, that Berschumkskie prints 24/7.

      Report Post » LIBS-ARE-DINGLEHEADS  
    • Formula382
      Posted on February 8, 2012 at 8:52pm

      @Economist

      I’ll take the other side of your bet. You say:

      We are looking at this:
      1) 8%-12% Mortage rates – How much will your house be worth with these rates?? Housing crises 2.0?
      Really? Japan started printing and cutting rates in ‘87, their 10 year government bond pays 1% now.
      2) US gov. debt interest payments will go from 18% of the tax revenue to close to 50%. Meaning HALF of our taxes will be just to pay interest on an INCREASING debt. Solvancy is gone if rates go up; the US will be FORCED to cut MAJOR if rates go up.
      Austerity will be forced upon government long before tax revs go to 50%. REmember, even when the marginal rate was 90%, the “gooberment” still only collected 20% tax revs. Raising taxes doesn’t work, never has if you do your homework.
      3) US will be forced to withdrawl 1/2 of the Military spending, cut payments in 1/2 to Social security retirees, Cut payments in 1/2 to Medicare recipients. No more unemployment checks will go out.
      Agreed.
      4) There will be no time for other countries to react and a precipitous withdrawl of Military will be an opening for IRAN/China/Russia to sieze control of the Energy rich areas of the world.
      Doubtful, we still have the military might. If Economy goes to crap, money will flood the U.S. and our dollar will rocket higher.
      5) Dollar and Euro will continue to drop and gas prices will be north of $8 gallon.
      Nope, deflation
      6) Consumer good prices inc.
      All prices deflating ex food/energy now,

      Report Post »  
  • barber2
    Posted on February 8, 2012 at 9:32am

    Have always thought that all of this is based on trust and confidence. With this administration and the world around it, there is very little of both. This administration seems to be encouraging fear and civil unrest with all of its ” anti-rich/ Wall Street/ bank / capitalism ” rhetoric. Any wonder that confidence and trust are down ?

    Report Post »  
    • ashestoashes
      Posted on February 8, 2012 at 9:44am

      I wonder if any of this scares the Rothchilds.. the ones whom I believe own the Federal Reserve which I believe started as far back as the 16th century ,,,who started wars to force everyone into it.. whose worth is estimated around I believe one third of the whole world at approximately 500 trillion dollars and whom I understand owns Rheuters and the rest the media.. Anyone who can control the media and put out propaganda can control the world…no?

      Report Post »  
    • barber2
      Posted on February 8, 2012 at 10:02am

      Bet Soros is thrilled. Mr Hedge Fund…

      Report Post »  
    • yiska8
      Posted on February 8, 2012 at 10:52am

      Break their spirit.
      Break up the classes into factions fighting each other (class warfare).
      Divide and conquer
      The words “fair share” scare the hell out of me. I think of Russia, Stalin, Red October, Cuba/Castro, and Chavez. Ronnie Reagan and Eisenhower, and Churchill are watching from heaven asking, ” Why haven’t the people removed this traitor from the Oval Office? What the heck are they waiting for? Why are they putting their nation in such grave peril after all we did to try and keep it free?” The founding fathers might be asking,” Where are the gallows? Why haven’t they been constructed? Why don’t they realize what is happening to them? We put our necks on the line for this to happen? “

      Report Post » yiska8  
  • D-Fence
    Posted on February 8, 2012 at 9:30am

    Does anyone really need a chart to tell them that our economy is bad? The real jobless rate is much higher than any government official will admit, the stock market is stuck between 11k and 13k with no signs of prolonged growth due to fixing the hobless rate, commodities are getting more and more expensive everyday, we’re not being allowed to fulfill our needs for energy because of government and the environmental lobby, the constitution is being trashed,.. What ever happened to my fathers and grandfathers America? Time to “you finish the sentence”.

    Report Post » D-Fence  
  • Snowleopard {gallery of cat folks}
    Posted on February 8, 2012 at 9:20am

    Most of us have been expecting the storm to hit; the early warnings from Europe have been sounding for some time; like the sailors of old, the veterans knew to watch the horizon and the waves for the first bare indications of the hurricane coming down on them.

    So it has been for the last few years here, we have a short time left, be ready for the nightmare will bloom full shortly.

    Report Post » Snowleopard {gallery of cat folks}  
    • AmazingGrace8
      Posted on February 8, 2012 at 9:41am

      Thank you Blaze for this information that I have been pondering & watching “The Signs”, bigger & more disastrous than 1929 crash. A few will jump out the windows but this society is a whole-lot-different and God -Help-Us.

      Report Post »  
  • loveoursoldiers
    Posted on February 8, 2012 at 9:20am

    Needs more explanation for us non nerds

    Report Post » loveoursoldiers  
  • Tyson
    Posted on February 8, 2012 at 9:20am

    One of two trend lines are present. Either a sharp move up to the peak in 2009 of 80% (very bad) or the “C” of A+B+C meaning and sharp increase to 50% (Bad but not as bad) in the second quarter of 2012. This is an uptrend chart. it indicates an event or a series of events that will bring investors to pay more for the “insurance” to mitigate the risk. At least that is how I see it, anyone else?

    Report Post » Tyson  
    • Dismayed Veteran
      Posted on February 8, 2012 at 12:06pm

      For general knowledge, the VIX moves in the opposite direction from the market. When the market goes up, the VIX goes down. When the market goes down, the VIX goes up. At this moment in time, the market is oversold. Volume is fairly flat. Low volume typically means uncertainty.

      The technical does show that the VIX trend line is moving to a clear major support. The support is multiple hits at around 15%. The historical trendline shows a bounce with a clear double top resistance formed at 2010 and 2011 at around 45%. The question is will it break resistance like it did in 2009. Prior to 2009, resistance was around 30%.

      Report Post » Dismayed Veteran  
  • jcizarter
    Posted on February 8, 2012 at 9:13am

    I have not been in the stock market since 2000, it is manipulated by power brokers. Now they are manipulating the commondities markets.

    Report Post » jcizarter  
    • loveoursoldiers
      Posted on February 8, 2012 at 9:26am

      Does this apply to mutual funds too? or just stocks?
      what to do? take money out and put it under a mattress? or will money be of no value anyway?

      Report Post » loveoursoldiers  
    • copatriots
      Posted on February 8, 2012 at 9:36am

      It applies to everything. The mortgage meltdown was timed perfectly to coincide with the election. The markets are all manipulated. Since mutual funds are basically baskets of stocks/commodoties etc, they are equally at risk.

      Report Post »  
    • Espada
      Posted on February 8, 2012 at 9:47am

      @ LOVEOUR SOLDIERS – invest in gold, silver, brass and lead.

      Report Post »  
    • Dismayed Veteran
      Posted on February 8, 2012 at 1:54pm

      @LoveOurSoldiers

      The VIX impacts any instrument that involves a stock,a stock option, futures, currency, commodities and derivatives. The VIX index shows the “fear” level in the market.

      Report Post » Dismayed Veteran  
    • SingerGuy
      Posted on February 8, 2012 at 5:49pm

      In addition to gold, silver, brass and lead I’d throw in as many 55 gallon water barrels, non-hybrid seeds, freeze dried food and a good water filtration unit (they‘re light in case you can’t shelter in place), a solar oven so your fuel doesn’t have to be used for cooking, and so forth. If it gets ugly, you’re set. If not, you are ready for a bunch of awesome camping trips.

      Report Post » SingerGuy  
  • Stoic one
    Posted on February 8, 2012 at 9:11am

    Anyone who is looking, can see that there is trouble a-coming

    Report Post » Stoic one  
    • progressiveslayer
      Posted on February 8, 2012 at 9:39am

      The article is light on details so I’ll fill in the blanks,we have a Marxist president bent on the destruction of our economy and the people,for the most part know it and the market definitely knows it.When China stops loaning to us we’re done.

      Report Post » progressiveslayer  
  • aggiebrewer
    Posted on February 8, 2012 at 9:09am

    So what exactly is he seeing that instills fear? Did I miss something?

    Report Post »  
    • Stoic one
      Posted on February 8, 2012 at 9:16am

      The author states the obvious in the article attached to the link….

      Report Post » Stoic one  
    • TomFerrari
      Posted on February 8, 2012 at 9:17am

      Neither this article nor the original article go deeply enough into explanation, imho.

      Report Post » TomFerrari  
    • bccrane
      Posted on February 8, 2012 at 9:25am

      Well I seen a report this morning on how consumer spending is up, but how they are doing it is using credit cards and getting loans to pay for things to me that means people are going further into debt in hopes that there may be a turn around to pay that debt off (or they will pay it off with their tax refund).
      If that turn around doesn’t happen there will be more people in financial trouble.

      Report Post »  
    • copatriots
      Posted on February 8, 2012 at 9:41am

      The VIX itself is a fear indicator…..the lower the line, the less fear. You can see from the 2008/2009 how the “fear index” hovered and then had a downward trend. It is starting a downward trend while we all know the market is being propped up and there isn’t a genuine “recovery”. The fact that it is trending low as we kick-off an election year is very unlikely. With everything going on in the Middle East, northern Africa and in our own country, the market should indicate more fear than the VIX is indicating.

      Hope this helps.

      Report Post »  
    • copatriots
      Posted on February 8, 2012 at 9:44am

      Sorry, I meant to add that the after 2008/2009 trended downward it then shot upward significantly. Given the instability in the world, the fact that the EU (notably PIGS) remains a problem and our own real economic problems, again, going into an election year…..especially one as volatile as this one is going to be…..we should expect a serious spike of fear in the markets just as we saw in late 2008.

      Report Post »  
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