{"id":7204,"date":"2015-04-10T05:57:51","date_gmt":"2015-04-10T10:57:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7204"},"modified":"2015-04-10T05:57:51","modified_gmt":"2015-04-10T10:57:51","slug":"another-crisis-is-coming-jamie-dimon-warns-of-the-next-market-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7204","title":{"rendered":"“Another Crisis Is Coming”: Jamie Dimon Warns Of The Next Market Crash"},"content":{"rendered":"

“Another Crisis Is Coming”: Jamie Dimon Warns Of The Next Market Crash<\/a><\/h3>\n

Last October\u2019s Treasury\u00a0flash crash<\/a>\u00a0\u2014 which Gregg Berman will tell you\u00a0wasn\u2019t<\/a>\u00a0the fault of HFT and which will likely repeat at some point or another thanks to the fact that Fed purchases have reduced market depth \u2014 may no longer be a once every three billion year occurrence as statistics would dictate, Jamie Dimon observes, in his latest letter to JPM shareholders, before suggesting that the event \u201cshould make you question statistics.\u201d Amusingly, Dimon seems to confuse cause and effect a bit, as it\u2019s really not the fault of \u201cstatistics\u201d per se, but rather the fault of shifting market dynamics (and by \u201cdynamics\u201d we mean increased manipulation and never-before-seen distortions and dislocations) that have rendered the old statistical models obsolete. But at least Dimon sees the event, and recent similar shakeups in FX markets for what they are:\u00a0\u201cwarning shots across the bow.\u201d\u00a0<\/strong>Here\u2019s Dimon:<\/p>\n

\n
Recent activity in the Treasury markets and the currency markets is a warning shot across the bow\u00a0<\/strong><\/em><\/div>\n

Treasury markets were quite turbulent in the spring and summer of 2013, when the Fed hinted that it soon would slow its asset purchases. Then on one day, October 15, 2014, Treasury securities moved 40 basis points, statistically 7 to 8 standard deviations \u2013 an unprecedented move \u2013 an event that is supposed to happen only once in every 3 billion years or so (the Treasury market has only been around for 200 years or so \u2013 of course, this should make you question statistics to begin with).Some currencies recently have had similar large moves. Importantly, Treasuries and major country currencies are considered the most standardized and liquid financial instruments in the world.<\/strong><\/em><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

“Another Crisis Is Coming”: Jamie Dimon Warns Of The Next Market Crash Last October\u2019s Treasury\u00a0flash crash\u00a0\u2014 which Gregg Berman will tell you\u00a0wasn\u2019t\u00a0the fault of HFT and which will likely repeat at some point or another thanks to the fact that Fed purchases have reduced market depth \u2014 may no longer be a once every three […]<\/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":[236,238,4715,400,401,4714,3783,2731,2202],"class_list":["post-7204","post","type-post","status-publish","format-standard","hentry","category-economics","tag-economic-collapse","tag-economic-crash","tag-flash-crash","tag-hft","tag-high-frequency-trading","tag-jamie-dimon","tag-stock-market-collapse","tag-stock-market-crash","tag-us-treasury"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7204","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=7204"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7204\/revisions"}],"predecessor-version":[{"id":7205,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7204\/revisions\/7205"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}