{"id":8105,"date":"2015-05-14T05:49:49","date_gmt":"2015-05-14T10:49:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8105"},"modified":"2015-05-14T05:49:49","modified_gmt":"2015-05-14T10:49:49","slug":"why-are-exchange-traded-funds-preparing-for-a-liquidity-crisis-and-a-market-meltdown","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8105","title":{"rendered":"Why Are Exchange-Traded Funds Preparing For A \u2018Liquidity Crisis\u2019 And A \u2018Market Meltdown\u2019?"},"content":{"rendered":"<h3><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/why-are-exchange-traded-funds-preparing-for-a-liquidity-crisis-and-a-market-meltdown\" target=\"_blank\">Why Are Exchange-Traded Funds Preparing For A \u2018Liquidity Crisis\u2019 And A \u2018Market Meltdown\u2019?<\/a><\/h3>\n<p>Some really weird things are happening in the financial world right now.\u00a0 If you go back to 2008, there was lots of turmoil bubbling just underneath the surface during the months leading up to the great stock market crash in the second half of that year.\u00a0 When Lehman Brothers finally did collapse, it was a total shock to most of the planet, but we later learned that their problems had been growing for a long time.\u00a0 I believe that we are in a similar period right now, and the second half of this year promises to be quite chaotic.\u00a0 Apparently, those that run some of the largest exchange-traded funds in the entire world agree with me, because as you will see below they are quietly preparing for a \u201cliquidity crisis\u201d and a \u201cmarket meltdown\u201d.\u00a0 About a month ago, I warned of an emerging \u201c<a title=\"liquidity squeeze\" href=\"http:\/\/theeconomiccollapseblog.com\/archives\/the-global-liquidity-squeeze-has-begun\">liquidity squeeze<\/a>\u201c, and now analysts all over the financial industry are talking about it.\u00a0 Could it be possible that the next great financial crisis is right around the corner?<\/p>\n<p>According to\u00a0<a title=\"Reuters\" href=\"http:\/\/www.reuters.com\/article\/2015\/05\/13\/us-etfs-credit-expansion-insight-idUSKBN0NY0A720150513\" target=\"_blank\">Reuters<\/a>, the companies that run some of the largest exchange-traded funds in existence are deeply concerned about what a lack of liquidity would mean for them during the next financial crash.\u00a0 So right now they are quietly \u201cbolstering bank credit lines\u201d so that they will be better positioned for \u201ca market meltdown\u201d\u2026<\/p>\n<blockquote><p>The biggest providers of exchange-traded funds, which have been funneling billions of investor dollars into some little-traded corners of the bond market,\u00a0<strong>are bolstering bank credit lines for cash to tap in the event of a market meltdown<\/strong>.<\/p>\n<p>Vanguard Group, Guggenheim Investments and First Trust are among U.S. fund companies that have lined up new bank guarantees or expanded ones they already had, recent company filings show.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why Are Exchange-Traded Funds Preparing For A \u2018Liquidity Crisis\u2019 And A \u2018Market Meltdown\u2019? Some really weird things are happening in the financial world right now.\u00a0 If you go back to 2008, there was lots of turmoil bubbling just underneath the surface during the months leading up to the great stock market crash in the second [&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":[1035,175,5412,5413,5415,500,5414,1138,2731],"class_list":["post-8105","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cash","tag-credit","tag-etf","tag-exchange-traded-fund","tag-lehman-brothers","tag-market-collapse","tag-market-liquidity","tag-stock-market","tag-stock-market-crash"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8105","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=8105"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8105\/revisions"}],"predecessor-version":[{"id":8106,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8105\/revisions\/8106"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}