Dow craters 800 points as panic trading continues across the globe. Here is what you need to know as records are being broken in many world markets, plus a bold prediction about where the unfolding crisis is headed.

This Crisis Will Be Worse Than 2008
 (King World News) – Peter Schiff:  “The financial industry and media have not been this clueless about the U.S. economy, and what’s waiting around the corner, since the months leading up to the 2008 financial crisis. The only difference between then and now is that the coming economic crisis will be far worse!”

“QE Is All Myth, Purely A Puppet Show”
Jeff Snider at Alhambra:  “The European economy was never booming; monetary policy has failed everywhere since 2007. QE is all myth, purely a puppet show. Now we have to watch the tinderbox that is Europe deal with another recession having never recovered from the last TWO. Another QE could blow it up (see below).

THE TINDERBOX THAT IS EUROPE: “Another QE Could Blow It Up”

To Reiterate…
Jeff Snider at Alhambra Partners:  “With Germany on the verge of recession, if not already in one. To reiterate: the German bond market has been right about the German economy, so the US bond market…(see below).

German Bond Market Has Been Right About Its Economy, So The US Bond Market

What A Ride
Charlie Bilello:  “On October 26, 1981 the 30-Year Treasury yield hit an all-time high of 15.21%. Today it hit a new all-time low of 2.02%. (See below).

WHAT A RIDE: 30-Year Treasury Yield Hit All-Time High Of 15.21% In 1981
Today It Hit A New All-Time Low Of 2.02%

Yes, Things Are Seriously Deteriorating
Charlie Bilello:  “US 10-Year minus 2-Year Yield…

Aug ’09: 2.48%
Aug ’10: 2.14%
Aug ’11: 2.10%
Aug ’12: 1.46%
Aug ’13: 2.37%
Aug ’14: 1.98%
Aug ’15: 1.47%
Aug ’16: 0.83%
Aug ’17: 0.89%
Aug ’18: 0.26%
Today: -0.003% (first inversion since Aug 2007)

US Yields To Go Negative?
Albert Edwards, Former Global Strategist at Societe Generale:  “What’s the big deal with the US 10y bond rally? It’s just catching up with the global PMI. The big move is from here is not to +1% but to minus 1%. (See below).

Edwards Predicts US 10-Year Yield Is Headed To Negative 1%!

Record Panic
Jason Goepfert at SentimenTrader:  “According to the Investment Company Institute, itchy traders pulled more than $21 billion out of equity ETFs last week. That’s the most since…well, ever.”…more here