{"id":59605,"date":"2021-09-30T17:50:15","date_gmt":"2021-09-30T22:50:15","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59605"},"modified":"2021-09-30T17:50:15","modified_gmt":"2021-09-30T22:50:15","slug":"the-market-crash-nobody-thinks-is-possible-is-coming","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59605","title":{"rendered":"The Market Crash Nobody Thinks Is Possible Is Coming"},"content":{"rendered":"

The Market Crash Nobody Thinks Is Possible Is Coming<\/a><\/h3>\n
\n

The banquet of consequences is being served, and risk-off crashes are, like revenge, best served cold.<\/i><\/p>\n

The ideal setup for a crash is a consensus that a crash is impossible–in other words, just like the present:<\/b>\u00a0sure, there are carefully measured murmurings about a “correction” but nobody with anything to lose in the way of public credibility is calling for an honest-to-goodness crash, a real crash, not a wimpy, limp-wristed dip that will immediately be bought.<\/p>\n

What I’m calling for is a\u00a0rip your face off<\/i>,\u00a0weeping bitter tears over the grave of the speculative wealth that you thought was forever<\/i>\u00a0crash.<\/b>\u00a0All those\u00a0buying the dip<\/i>\u00a0because\u00a0the Fed will never let the market go down<\/i>\u00a0will be crushed like scurrying cockroaches and all those trying to rotate into the\u00a0next hot sector or asset class<\/i>\u00a0will also be crushed like scurrying cockroaches because\u00a0when the Everything Bubble pops, well, everything pops<\/i>. There is no shelter in a risk-off cascade.<\/p>\n

The crash is coming as a result of multiple mutually reinforcing dynamics<\/b>, the first being that no “serious person” believes a crash is possible, much less imminent. In no particular order, here are a raft of other causally consequential triggers of a cascading market crash:<\/p>\n

1. As I noted in my call for the top,\u00a0Is Anyone Willing to Call the Top of the Everything Bubble?<\/a>\u00a0(September 6, 2021)<\/b>, there is no history to support the widespread confidence that the extremes of over-valuation, leverage, euphoria and speculation last forever, or even much longer than the lifespan of a cockroach. We’re well past that benchmark into unprecedented insanity. So what happens next: squish.<\/p>\n

Just for the record, the Dow topped out on August 13, the S&P 500 topped out on September 2 and the Nasdaq topped out the day after my call, September 7. (Close enough for gummit work…)<\/p>\n

2. The credibility of the Federal Reserve is in the dumpster, which just caught fire.<\/b>\u00a0As I explained in\u00a0The Fed Is Fatally Corrupt– And So Is the Rest of America’s Status Quo<\/a> (September 10, 2021), the Fed is corrupt on multiple levels–thoroughly, completely corrupt, and so are all its minions, proxies, apparatchiks, toadies, apologists and lackeys.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Market Crash Nobody Thinks Is Possible Is Coming The banquet of consequences is being served, and risk-off crashes are, like revenge, best served cold. The ideal setup for a crash is a consensus that a crash is impossible–in other words, just like the present:\u00a0sure, there are carefully measured murmurings about a “correction” but nobody […]<\/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":[1806,24078,17853,303,1849,501,587,3650],"class_list":["post-59605","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble","tag-charles-hugh-smith-2","tag-everything-bubble","tag-fed","tag-financial-markets","tag-market-crash","tag-of-two-minds","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59605","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=59605"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59605\/revisions"}],"predecessor-version":[{"id":59606,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59605\/revisions\/59606"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}