{"id":15273,"date":"2015-12-15T08:09:07","date_gmt":"2015-12-15T13:09:07","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15273"},"modified":"2015-12-15T08:16:41","modified_gmt":"2015-12-15T13:16:41","slug":"this-is-what-a-financial-crisis-looks-like","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15273","title":{"rendered":"This Is What A Financial Crisis Looks Like"},"content":{"rendered":"<div class=\"post-headline\">\n<h3><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/this-is-what-a-financial-crisis-looks-like\" target=\"_blank\">This Is What A Financial Crisis Looks Like<\/a><\/h3>\n<\/div>\n<div class=\"post-bodycopy clearfix\">\n<p><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/this-is-what-a-financial-crisis-looks-like\/financial-crisis-2015-public-domain-2\" rel=\"attachment wp-att-9584\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9584\" src=\"http:\/\/theeconomiccollapseblog.com\/wp-content\/uploads\/2015\/12\/Financial-Crisis-2015-Public-Domain-460x325.jpg\" alt=\"Financial Crisis 2015 - Public Domain\" width=\"460\" height=\"325\" \/><\/a>Just within the past few days, three major high yield funds have completely imploded, and panic is spreading rapidly on Wall Street.\u00a0 Funds run by Third Avenue Management and Stone Lion Capital Partners have suspended payments to investors, and a fund run by Lucidus Capital Partners has liquidated its entire portfolio.\u00a0 We are witnessing a race for the exits unlike anything that we have seen since the great financial crash of 2008, and many of those that choose to hesitate are going to end up getting totally wiped out.\u00a0 In case you are wondering, this is what a financial crisis looks like.\u00a0 In 2008, other global stock markets started to tumble, then junk bonds\u00a0<a title=\"began to crash\" href=\"http:\/\/theeconomiccollapseblog.com\/archives\/guess-what-happened-the-last-time-junk-bonds-started-crashing-like-this-hint-think-2008\">began to crash<\/a>, and finally U.S. stocks followed.\u00a0 The exact same pattern is playing out again, and the carnage that we have seen so far is just the tip of the iceberg.<\/p>\n<p>Since the end of 2009, a high yield bond ETF that I watch very closely known as JNK has been trading in a range between 36 and 42.\u00a0 I have been waiting all this time for it to dip below 35, because I knew that would be a sign that the next major financial crisis was imminent.<\/p>\n<p>In September, it closed as low as 35.33 at one point, but that was not the signal that I was looking for.\u00a0 Finally, early last week JNK broke below 35 for the very first time since the last financial crisis, and since then it has just kept on falling.\u00a0 As I write this, JNK has plummeted all the way to 33.42, and\u00a0<a title=\"Bloomberg is reporting\" href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-12-14\/investors-see-more-carnage-as-third-avenue-spurs-contagion-risk\" target=\"_blank\">Bloomberg is reporting<\/a>\u00a0that many bond managers \u201care predicting more carnage for high-yield investors\u201d\u2026<\/p>\n<blockquote><p>Top bond managers are predicting more carnage for high-yield investors amid a market rout that forced at least three credit funds\u00a0in the past week to wind down.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This Is What A Financial Crisis Looks Like Just within the past few days, three major high yield funds have completely imploded, and panic is spreading rapidly on Wall Street.\u00a0 Funds run by Third Avenue Management and Stone Lion Capital Partners have suspended payments to investors, and a fund run by Lucidus Capital Partners has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[236,5983,11040,2297,11041,1297,487,4901,860],"class_list":["post-15273","post","type-post","status-publish","format-standard","hentry","category-economics","tag-economic-collapse","tag-economiccollapseblog","tag-gating","tag-hedge-funds","tag-high-yield-etfs","tag-junk-bonds","tag-liquidity","tag-michael-snyder","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15273"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15273\/revisions"}],"predecessor-version":[{"id":15275,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15273\/revisions\/15275"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}