How You'll Know When The Public Is Seriously Getting Panicked

Is there blood on the streets yet?

Have people hit the point of mass panic with all this market carnage?

It doesn’t look like it.

We looked at Google Trends to see the popularity of various search terms that would signify a panic.

Let’s go through them.

This one is pretty obvious. Interest in The Depression is curving up, but it’s nowhere special, and it’s nowhere near the peaks seen in late 2008 and early 2009 when the market was at its scariest.

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Photo: Google Trends

In 2008 we saw a huge surge in interest for firearms as people really started thinking about end times. Now? Hardly a blip.

chart

Photo: Google Trends

Nobody knows what deflation is, and people hardly ever search for it, but for a brief moment in 2008 it was hugely talked about. If people start searching for this en masse again, that will be a sign.

chart

Photo: Google Trends

This one’s really telling. Only money wonks know what “fractional reserve” banking is. When it looked like the financial system was going to crumble in 2008, everyone got curious. Right now, nobody cares.

chart

Photo: Google Trends

On the other hand, given the surge in gold and so on, there is a lot of interest in fiat currency, and the nature of paper money. Certainly interesting. Not necessarily a sign of panic.

chart

Photo: Google Trends

So keep an eye on these charts. Or we will for you.

 

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