{"id":51869,"date":"2020-03-20T16:14:07","date_gmt":"2020-03-20T21:14:07","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51869"},"modified":"2020-03-20T16:14:11","modified_gmt":"2020-03-20T21:14:11","slug":"the-crash-of-2020-is-now-worse-than-the-great-depression","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51869","title":{"rendered":"The Crash Of 2020 Is Now Worse Than The Great Depression"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/crash-2000-now-worse-great-depression\">The Crash Of 2020 Is Now Worse Than The Great Depression<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Back in December, someone in China made bat soup (at least according to the officially accepted narrative that doesn&#8217;t get you banned on Facebook, Twitter, etc), and the rest is history: in the next three months, the global equity market has lost $24 trillion in value, more than the $22 trillion in US GDP. And here is a staggering chart from BofA putting the crash of 2020 in its historic context: in the past month,&nbsp;<em>the US stock market has crashed faster than both the Great Depression and Black Monday, and in terms of the total drawdown,&nbsp;<\/em><strong>the crash of 2020 is now worse than 1929 and is fast approaching 1987.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bear%20market%20comp.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Below, courtesy of BofA CIO Michael Hartnett, are several other stunning observations on the Crash of 2020:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Calls for Fed corporate bond buying, New Deal fiscal policies, new Plaza Accord to stabilize US$, closure of stock exchange coincide with week of Wall St devastation.<\/li><li><strong>Peak-to-trough crash in global equity market cap = $24tn&nbsp;<\/strong>(c\/o US GDP = $22tn).<\/li><li>Monday&#8217;s 12.0% drop Dow Jones =&nbsp;<strong>3rd largest crash all-time (c\/o -20.5% Oct 19th 1987, -12.9% Oct 28th 1929 &#8211; Chart 2).<\/strong><\/li><li>Liquidation of &#8220;safe havens&#8221; e.g. gold &amp; US Treasuries (TLT ETF sank 20% after oil shock); epic US$ surge reflects funding pressure of excess US$-denominated debt &amp; zero liquidity.<\/li><li>Leverage in bond &amp; stocks savaged (see REM, PFF, EMB, homebuilders like TOL &#8211; Chart 3);&nbsp;<strong>bond yields rise + bank stocks fall = classic sign of deflationary bear market.<\/strong><\/li><li>Feral Wall St means vicious bear market rallies&#8230;WTI oil surged 24% today.<\/li><li>Stock exchange has closed just 4 occasions: 1914 &amp; WW1, 1933 bank holiday, 1963 Kennedy assassination, 2001 9\/11.<\/li><li>Global &#8220;lockdown&#8221; on movement people, goods, services unprecedented&nbsp;<strong>but note June 1930 passage of protectionist Smoot-Hawley bill saw US stocks -16.5% in one month.<\/strong><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bofa%20ch23.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">And some additional views:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Crash Of 2020 Is Now Worse Than The Great Depression Back in December, someone in China made bat soup (at least according to the officially accepted narrative that doesn&#8217;t get you banned on Facebook, Twitter, etc), and the rest is history: in the next three months, the global equity market has lost $24 trillion [&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":[13240,1849,383,500],"class_list":["post-51869","post","type-post","status-publish","format-standard","hentry","category-economics","tag-13240","tag-financial-markets","tag-great-depression","tag-market-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51869","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=51869"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51869\/revisions"}],"predecessor-version":[{"id":51871,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51869\/revisions\/51871"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}