Predictions about the next market crash aren’t all flowers and rainbows. But JPMorgan Chase claims that not only will the public be subjected to a major financial crisis, but it will be compounded by the massive social unrest that will follow.
J.P. Morgan’s top quant, Marko Kolanovic, predicts a “Great Liquidity Crisis” will hit the financial markets hard and be marked by flash crashes in stock prices and social unrest. According to CNBC, Kolanovic says that the timing of when this next crisis will occur is uncertain but markets appear to be safe through the first half of 2019.
Kolanovic is a 43-year-old analyst with a Ph.D. in theoretical physics. He has risen in prominence for explaining, and occasionally predicting, how the new, algorithm-dominated stock market will behave. Kolanovic predicts the market will suffer from sudden and severe stock sell-offs sparked by lightning-fast machines. Unprecedented actions by central banks to shore up asset prices will all lead to social unrest not seen in the United States in half a century.
The forces that have transformed markets in the last decade, namely the rise of computerized trading and passive investing, are setting up conditions for potentially violent moves once the current bull market ends, according to a report from Kolanovic sent to the bank’s clients on Tuesday. His note is part of a 168-page mega-report, written for the 10th anniversary of the 2008 financial crisis, with perspectives from 48 of the bank’s analysts and economists. –CNBC
The current bull rally, which is the longest in modern history by some measures, has been characterized by extended periods of calm punctuated with spasms of selling known as flash crashes. Recent examples include a nearly 1,600 point intraday drop in February and a 1,100 point decline in August 2015. Other analysts, such as Peter Schiff, believe we are already deep in a bear market, and all economic news is bad news right now. However, those flash crashes occurred during a backdrop of a U.S. economic expansion; the new market hasn’t been tested in the throes of a recession, Kolanovic said. “They are very rapid, sharp declines in asset values with sharp increases in market volatility,” he added.
“If you have these liquidity-driven sharp sell-offs that come at the end of the cycle, or maybe even causes the end of the cycle, then I think you can have a much more significant asset price correction and even more significant increase in market volatility,” Kolanovic said. He then closes his report in an ominous tone: “The next crisis is also likely to result in social tensions similar to those witnessed 50 years ago in 1968.”
Much of the public, especially the young, are being kept ignorant, are deliberately being misguided, haven’t been taught to use reason or logic, are deeply in denial, and the media are fanning the flames and are trying to make the most of this to suit their own purposes. I am too objectively minded to go out onto the streets and riot, but I am looking forward to November because it looks like it is going to be more interesting and more meaningful than anything Hollywood has produced in a very long time.
You think more Democrats will get elected? Will this cause a shift to the Left?
rrr, this fall is C-day (collapse Day). I predicted that it would be late last year because Trump would shut down the Government to get border funding. I was a year early again (like in 2008). It looks like he may not sign the budget this year unless there is border wall funding.
If that is the case, this will trigger the collapse. That way the PTB can blame Trump and those crazy Nationalists for the economic collapse. They want World Government, consequently they must destroy Nationalism!
Justice, yes they are working to destroy nations, ours included. About collapse you may be right. One other possibility is that if hyperinflation is in the cards the markets might just keep going up. I’m not an authority on economics but I understand some of it, and I wonder about the banks putting liquidity into markets. Are they actually doing that? And is that why inflation has not been a factor so far? All that money going into stocks would cause price to go up and the inflationary money to be out of circulation. So they say. But it seems to me not really because the money being put into stocks would just be going into other pockets and thus still in circulation in a significant sense. Seems to me that humans have not stated the principles of economics adequately yet, and therefore maybe they don’t really know them.
The end game is bankers achieving a truly global plantation where the central banks own all resources, land, corporation, governments, where 99.9% of people are workers to create profits for the “owners”. (George Carlin, Its a Big Club and you’re NOT in it)
This globla plantation concept (the NWO) is to be combined with 95% world population reduction to reduce competition for the earth’s finite resources.
Fact, Saudia Arabia is beginning to drill off shore for oil the last few years. This is a major tell about the decline in availalbe petroleum as it cost 70X to drill off shore than on land
The peoples of the USA and EU and Japan, Australia (plus Taiwan and Hong Kong) have a huge gap in percapita income compared to the rest of the entire world, literally 10x to 20x higher percapita income compared China, India, Africa, South America.
The Bankers see this income gap of the US/EU etc as Huge Milk Cow to be tapped until we are all “on par with the rest of the world”
Folks, it pains the bankers to no end to know there is 600 million middle class people still making $20k to $80k per year and owning real assets while 6 Billion others are at under 10% of this.
We, among the 600 million “over-privledged” are an affront to the “owners” of the global plantation and they believe we all need to be brought down to the global average level.
And
there are, in the opinion of the “owners”, just too many of us “useless eaters” consuming resources and reproducing while adding nothing to the global plantation.
Wars, famine and plagues to bring about 95% population reduction to get us below the Georgia Guidestone’s 500 million max world wide population statement will be in the mix for all this.
Its doom porn on a Biblical scale.
Get you and your family out of the major metro areas, if possible, fully or partly off grid for utility dependence,
being rural with a well, on site septic and wood stove reduces your dependence dramatically.
Passive House and Hardened Structures.com can get you the rest of the way there affordably.
Grow some of your own food, especially perennials, (like orchard trees, grapes, black berries, etc) since once planted and nurtured just a few years, they come back year after for decades.
Get low, off the radar; convert some of your income stream to cash, but do continue paying the IRS something each year to not be a target of the government.
Build a Close community of like minded folks.
Pray without ceasing. Read your bible to yourself and your kids.
And keep your powder dry.
Margin call capitulation will bring down the domino set o Wallstreet. I see no major social unrest, because the poor have no money invested in the stock market. Its just a bunch of number to them. Unless they lose their jobs, or the EBT Food stamp processing crashes. Hunger will cause panic, rioting and looting no doubt.
Of course the poor will be bribed by G Soros scumbag to riot. but it is not a generic kind of rioting, just paid mercenaries to create chaos. Then we patriot will have to shoot them to put them out of their misery.
I have been to Russia 5 times, my visits were from a week and up to 2 months. I had opportunities to speak to many people (who by the way bore no animosity towards Americans whatsoever). Most people I spoke to were born and raised under the Soviet system, and prefer what is now than then. They commented how they see groups of antifa, leftist students, people blocking streets and highways, and others clamoring for communism and waving the hammer & sickle flag in the US. They told me in reality these “protesters” are nothing more than mindless rabble, and without a doubt they are being orchestrated. They said they are incredibly naive, childish, and really stupid. Since these are the words of people who lived under the “worker’s paradise” I’ll take their word for it. If the US was to become communist, these directed protesters would be the first to be exterminated. They are only useful idiots that absolutely serve no other purpose for the state, agitating for their own demise.
The only way the US can become communist, is if they succeed in disarming us. They wont, because we will not let them. If the Democrats takeover, Tyranny will be the rule, not the exception. We, yes you, us and I, will have to end them.
All being engineered including the unrest to bring in the new world order. We are supposed to beg the globalists to save us
If we hold up our end of the constitution by not complying with their Tyranny. If we turn off their resupply and their electricity, they will be begging us to save them.
No food
No fuel
No electricity means
No ability to wage a war against us.
Fine with me,
BRING IT!
“Nail”
Any excuse is good as the next one. Unrest is coming NO MATTER WHAT!!!
Sgt.
People all over the country are on edge. The distance between the two sides is too far now to ever close without bloodshed at some point. When the regular folks get squeezed hard enough (ie. no more deficit spending/printing $1 trillion per year) the masses will revolt. So far, the people are kept satiated with Netflix, porn, internet and things are relatively quiet. Just a matter of time.
Agreed Sarge,,
It wont matter, its coming.
“Unrest” is an establishment term, to tone down what’s really happening- riots and mayhem. . .
Red Leader, I just want to thank you for suggesting that I look into getting my FCC license. I did and now I can use 4-Channel UHF Two-Way Radios which have secure features and better sound (among other things). It was super easy to sign up!
Also, I bought the book and began studying for the Ham Radio Technicians Class. I have put that off long enough.
And JP Morgan will be a large contributor to the collapse – just like last time.
Most stock market holdings have a stop loss sell order, usually about 10% of the current price. If the price drops 10% there is an automatic sell order which then causes a flash crash.
Here’s an interesting little tidbit. The total number of shares of Amazon stock is 487.74 million. The total number of shares traded in one day tends to be somewhere around 5 million. That’s just over one percent of all shares outstanding. What this means is that more than 98% of all shares of Amazon did not trade on the day that the company’s value exceeded one trillion, and that therefore the true value of 98% of Amazon shares is not the price traded on that day. If a substantial part of that 98% all tried to sell in one day the bids would be used up and then there would be no bids, and the price would suddenly, not slowly, not gradually, but all at once, be in the low hundreds or even just dozens of dollars, if not zero. So when they say that the total value of Amazon is one trillion dollars, that is a lie.
This is true of all stock markets everywhere so far as I know. And a lot of those stocks are bought on borrowed money, margin. So this is a case of the emperor not wearing any clothes. It’s like a chicken salesman holds a chicken in front of your face and it’s got two feathers on it and all you can see are the two feathers, and he tells you the chicken is covered in feathers but really it’s completely plucked and entirely naked and you can’t see that because he knows how to fool you. That’s how the stock markets work. Also, when you own a share of stock you don’t really own anything, technically the right to receive dividends but really not even that, and par value, it would take years for you to get par value if they sold the company brick by brick, so you don’t own anything real when you own stock, just whatever the people who control the company believe they should give you. They and a lot of other would say otherwise, but once you get past all the smooth words that is what it really comes down to.
rrrr,
Could not have said it better myself. Excellent post.
I think we can all agree the stock market is manipulated and controlled by the Plunge Protection Team. There are “circuit breakers” that automatically stop trading when the market goes too far, too fast, in either direction.
Therefore, I doubt they will allow a crash to occur. A slow slide maybe…but not a crash. If a fast selloff occurs after a stop, they will shut the market down until they can calm the HFT computers.
There are no such animals as “free markets” anymore. It’s a planned economy from top to bottom ever since money was decoupled from precious.
JRS,
Precious metals are also a controlled/manipulated market.
Additionally there is not enough PM’s in the entire world to cover the vast debt and wealth fake paper money represents.
Of course there is.
It’s simply establishing the price of gold at a level that covers them.
Never happen.
Outside of industrial uses gold has no use other than it is pretty and rare. You may think it is valuable, but I don’t.
Jack the gold price up 10,000%. Who will buy it? and with what?
It then becomes no different than the Fake money, stock, and other stuff we trade with.
All of History says otherwise…He who has the gold, makes the rules.
The Wizard of ID, by Brant Parker and Johnny Hart in 1964.
“Social Unrest”?
Only if it effects the underclass who riot on a good day or one orchestrated for show by TPTB with likely Soros as the middle man. People who saved several hundred thousand or a few million investing don’t take up arms when they lose it. The underclass on the street murders for $5.
I used to think that way but no longer. Ain’t no “Johnny Rebs” going to hit the streets until the blood starts running deep and then MAYBE. How many deaths did they have in Charlottesville a couple of years back? Hmmmm One, Uno, by car even though some carried firearms. Not sayin’ though that if things get bigger than maybe some will feel the tug. Most will say they’ll do something when they come up their driveway.
“Most will say they’ll do something when they come up their driveway”.
Way too late then.
If a mob comes up the driveway. Its not necessarly too late. Just shoot a few of the fattest in the gut or butt. Their screaming will unnerve the remainder And they will stampede like black Thursday shoppers. Those in the front will turn around trample those behind them.
The rule of law may return post crash and every shot will likely require accountability. Knowing a good backstop for impact, a few fairly rapid high velocity rifle bullets 2 ft over the menacing groups heads will get every one of them thinking that they were being targeted. They’ll move on to an easier target without revenge being a prime motivator necessitating a future battle that could have been initially avoided.
I was always taught, that if you judge that you need to pull a gun on a person, you use it. If you pull out a gun your opponent has every right to defend themselves.
I’m not a cop or still in the military( both of which have different rules of engagement).
Fire for effect.
“I was always taught, that if you judge that you need to pull a gun on a person, you use it.”
A recent “Stand Your Ground” case in Florida had a situation that a man was shoved to the ground, the assaulter advanced and then obviously retreated once the gun appeared aimed at him. The man shot anyway. The jury will determine if “stand your ground” applies. Often the presence of a gun stops the attack; if so thats certainly the way to go.
I believe situations are too fluid and dynamic to have etched in stone policy’s governing actions. I was taught a lot of things and while some were incorrect one is 100%; think before you do.
If I make it through life, without having to shoot someone, receiving only damage to my ego, that is well preferable than the alternative.
“A wise man walks with his head bowed low”.
Trust no man that wears pink shirts.
Trust any man that wears pink shorts.
Kevin2,if that happened here in Arizona,he would be on his way to prison. Once an attacker backs off or retreats, the threat is considered done. Bad shoot.
If the dems win expect further infringement on the 1st, 2nd, 4th and Bill of Rights.
If the reps win expect further infringement on the 1st, 2nd, 4th and Bill of Rights.
If Cruz loses in Texas, DOH, there goes Texas.
Phony stock market totally propped up. Only question If it is a Hog ready for slaughter by tptb or If they still consider it a piglet not worth butchering?
If you think Mexico was a nice place to live during the height of their prosperous years anytime in during the late 20th century and feel they had awesome freedom and liberty during the same period you will love what the United States will be like very soon. You just wont share in as much freedom and liberty as they had and it will have a more Cuba under Castro type feel to it.
Almost forgot to mention: If dems win expect at least a tendold inrease in leftist violence within six months of the election. If the reps win expect at least a tenfold increase in leftist violence within six months of the election.