{"id":32538,"date":"2018-03-19T15:28:55","date_gmt":"2018-03-19T20:28:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32538"},"modified":"2018-03-19T15:29:26","modified_gmt":"2018-03-19T20:29:26","slug":"an-unexpected-warning-from-goldman-sachs-markets-themselves-will-cause-the-next-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32538","title":{"rendered":"An Unexpected Warning From Goldman Sachs: “Markets Themselves” Will Cause The Next Crash"},"content":{"rendered":"
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An Unexpected Warning From Goldman Sachs: “Markets Themselves” Will Cause The Next Crash<\/span><\/a><\/h3>\n<\/div>\n
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It all started nearly 9 years ago to the day, when in April 2009 we wrote, “The Incredibly Shrinking Market Liquidity, Or The Upcoming Black Swan Of Black Swans<\/a>“, in which we explained how as a result of the growing influence of HFT, quants and central banks, the market itself was breaking.<\/p>\n

We also highlighted what the culmination of the market’s “breakage” could look like:<\/p>\n

liquidity disruptions could and will lead to unexpected market aberrations, such as exorbitant bid\/ask margins, inability to unwind large block positions, and last but not least, explosive volatility: in essence a recreation of the market conditions approximating the days of August 2007, and the days post the Lehman collapse…<\/p><\/blockquote>\n

We even laid out some likely catalysts for a possible market crash: “continued deleveraging in quant funds, significant pre-market volatility swings as quants rebalance their end of day positions, increasing program trading on decreasing relative overall trading volumes.”<\/p>\n

One month ago, we saw all of the above elements briefly come together when on February 5 the market finally did break as its topology was torn apart by various, disparate elements, resulting in virtually all of the above materializing, if only for a short time.<\/p>\n

To be sure, as time passed, others joined our warning that the market is becoming increasingly broken, with some of the most notable warnings coming from the likes of Bank of America’s Benjamin<\/a> Bowler<\/a>…<\/p>\n

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… who explicitly noted the market’s increasing fragility on numerous occasions…<\/p>\n

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… and how the Fed rushed to bail it out on every single occasion<\/a>…<\/p>\n

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… as well as Fasanara Capital<\/a>…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

An Unexpected Warning From Goldman Sachs: “Markets Themselves” Will Cause The Next Crash It all started nearly 9 years ago to the day, when in April 2009 we wrote, “The Incredibly Shrinking Market Liquidity, Or The Upcoming Black Swan Of Black Swans“, in which we explained how as a result of the growing influence of […]<\/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":[1849,376,501,5545,4318],"class_list":["post-32538","post","type-post","status-publish","format-standard","hentry","category-economics","tag-financial-markets","tag-goldman-sachs","tag-market-crash","tag-stability","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32538","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=32538"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32538\/revisions"}],"predecessor-version":[{"id":32539,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32538\/revisions\/32539"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}