{"id":40590,"date":"2018-11-16T15:51:38","date_gmt":"2018-11-16T20:51:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40590"},"modified":"2018-11-16T15:51:38","modified_gmt":"2018-11-16T20:51:38","slug":"to-one-bank-this-is-the-flashing-red-warning-that-a-crash-is-dead-ahead","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40590","title":{"rendered":"To One Bank, This Is The Flashing Red Warning That A Crash Is Dead Ahead"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-11-16\/one-bank-flashing-red-warning-crash-dead-ahead\"><span class=\"field field--name-title field--type-string field--label-hidden\">To One Bank, This Is The Flashing Red Warning That A Crash Is Dead Ahead<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1252\" data-gtm-vis-first-on-screen-2077925_22=\"1252\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>For much of 2018, the prevailing market theme was the one Morgan Stanley dubbed &#8220;<a href=\"https:\/\/www.zerohedge.com\/news\/2018-07-08\/its-time-get-defensive-morgan-stanley-downgrades-tech-stocks-sell\">rolling bear markets<\/a>&#8221; when any time a given asset was hit, whether emerging markets, Italian bonds, or tech stocks, money would simply rotate from one place to another. However, at the end of September, when rates spiked amid concerns the Fed was prepared to push rates beyond neutral, things changed overnight.<\/p>\n<p>Fast forward to now when what appeared to be somewhat orderly sequential blow ups have mutated into wholesale market panics in which everything starts to go wrong at once, or as <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-11-16\/shell-shocked-investors-don-t-know-where-the-next-bomb-will-drop\">Bloomberg describes <\/a>it &#8220;<strong>everywhere you look, something\u2019s blowing up<\/strong>.&#8221;<\/p>\n<blockquote><p>In commodities, it\u2019s the record plunge in oil. In equities, it\u2019s six weeks of turbulence in the S&amp;P 500. Debt markets have been rattled by the turmoil engulfing General Electric and PG&amp;E. Bitcoin just plunged 13 percent. And Goldman Sachs, the storied investment bank, is having the worst week since 2016.<\/p><\/blockquote>\n<p>As Bloomberg correctly notes, by themselves these sudden asset air pockets would be enough to incite panic, &#8220;but have them erupt all around and even the most grizzled Wall Street types can start to sound paranoid. Does GE have something to do with Goldman? How does Bitcoin sway the stock market? Wildfires have nothing to do with crude\u2019s convulsions, but both are bad news for banks.&#8221;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/crashes%20everywhere.jpg?itok=cVrQOVYP\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/crashes%20everywhere.jpg?itok=cVrQOVYP\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/crashes%20everywhere.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/crashes%20everywhere.jpg?itok=cVrQOVYP 1x\" alt=\"\" width=\"500\" height=\"281\" data-entity-type=\"file\" data-entity-uuid=\"7bda1a7b-cdff-43fa-933a-d805cf5cfb30\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>\u201cThe risk of contagion is understood. What\u2019s not understood is where and how connected things are,\u201d Stewart Capital Advisors&#8217; Malcolm Polley said by phone. &#8220;Just about anything can create panic, create contagion, and it doesn\u2019t have to be something that makes sense.&#8221;<\/p>\n<blockquote><p>That bad things should congregate isn\u2019t surprising to Donald Selkin, chief market strategist at Newbridge Securities, who sees it as a consequence of having it so good for so long. He\u2019s waking up every night to check the futures.<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>To One Bank, This Is The Flashing Red Warning That A Crash Is Dead Ahead For much of 2018, the prevailing market theme was the one Morgan Stanley dubbed &#8220;rolling bear markets&#8221; when any time a given asset was hit, whether emerging markets, Italian bonds, or tech stocks, money would simply rotate from one place [&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":[1750,1992,6632,501,7477,4318],"class_list":["post-40590","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-market","tag-contagion","tag-financial-market","tag-market-crash","tag-morgan-stanley","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40590","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=40590"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40590\/revisions"}],"predecessor-version":[{"id":40591,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40590\/revisions\/40591"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}