Current Economic Collapse News Brief: Student Loan, Consumer Bankruptcies, Hindenburg Omens…“SKYFALL” Set Up In The NYSE In Place?

Unbelievable report suggests the “student loan” bubble could be entering a dangerous new phase

Now that college age Americans have been stuffed with over a trillion dollars in student debt, only to get a job a McDonald’s and live with their parents, folks in New York City have come up with a brilliant new concept to ensure an entirely new generation of debt slaves.

Introducing day care loans… and here’s the best part, they are “interest only” from childcare to kindergarden!

Of course, it makes sense that these loans would originate in my hometown of NYC, which has in the past 15-20 years fully transformed itself into a corporatized, generic, and unaffordable Wall Street whorehouse. From CBS:

After housing, child care is one of the largest expenses for families in New York City.


But now, there is an option for parents to get their kids into some of the city’s top pre-kindergarten programs with loans just for day care…

US Consumer Bankruptcies Jump By Most In Three Years; Third-Party Collections At All Time High

Something funny happened on the road to the epic consumer balance sheet cleansing and subsequent releveraging (without which there can be no actual non-Fed sugar high fueled recovery): the second quarter. And specifically, as the Fed just disclosed in its quarterly Household Debt and Credit Report, the number of consumer bankruptcies during the second quarter, just jumped by 71K, to 380K from 309K in Q1, the biggest quarterly jump in precisely three years – on both an absolute and relative basis – and the most since the 158K jump recorded in Q2 2010. It appears that when the “releveraging” US consumer isn’t busy buying stuff on credit, they are just as busy filing for bankruptcy. Healthy consumer-led recovery and all that.


When You Get This Many Hindenburg Omens, The Stock Market Is Supposed To Crash

Wall Street’s chart gurus have spotted the ominous “Hindenburg Omen” in the stock market today.

Today’s sighting is the sixth one in just eight days, and that’s pretty significant for folks who believe history repeats itself.

Last week, SentimenTrader’s Jason Goepfert discussed the clustering of Hindenburg Omens. Here’s an excerpt via UBS’s Art Cashin (It’s still relevant today):

With the latest market rally, the Omens are flaring up again.  There have been 5 Omens triggered out of the past 8 trading sessions (your data may vary – we’re using the same sources we’ve always used for historical data).  That’s actually the closest-grouped cluster since early November 2007.

It’s extremely rare to see as many Omens occurring together as we’ve seen over the past 50 days.  The last time was prior to the bear market in 2007.  The time before that was prior to the bear market in 2000.

So, what exactly is the Hindenburg Omen?

As Goepfert suggests, not everyone has the same definition.  But here’s Wikipedia’s criteria:

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  1. The daily number of NYSE new 52 week highs and the daily number of new 52 week lows are both greater than or equal to 2.8 percent (this is typically about 84 stocks) of the sum of NYSE issues that advance or decline that day (typically, around 3000). An older version of the indicator used a threshold of 2.5 percent of total issues traded (approximately 80 of 3200 in today’s market).
  2. The NYSE index is greater in value than it was 50 trading days ago. Originally, this was expressed as a rising 10 week moving average, but the new rule is more relevant to the daily data used to look at new highs and lows.
  3. The McClellan Oscillator is negative on the same day.
  4. The number of New 52 week highs cannot be more than twice the number of new 52 week lows (though new 52 week lows may be more than double new highs).

Read more:

“SKYFALL” set up in the NYSE in place?


Twice in the past 13-years the NYSE created a double top at one resistance line at (1) above and then the “sky fell”…. as it declined 50%…. twice.

Now the NYSE could have created another double top at a parallel channel line at (2) in the chart above while theAdvance/Decline line may have created a double top and continues to fall.

Do we have another “SKYFALL” pattern at hand?  Different this time?  Stay tuned, will revisit this pattern a few weeks from now!

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