The Looming $600 Trillion Derivative Crisis! Banks Have Been Trading Gold That Doesn’t Exist

 

The current situation has been taking a toll on financial institutions the world over. As the economy grounds to a halt, so do many of the daily transactions that keep money moving and ensure the balance of financial markets. As companies start massive layoff programs and furlough their employees, liquidity demand is rising to levels similar to those of long-forgotten bank rushes. In a bid to prevent widespread commercial bank failures and worldwide financial collapse, Central Banks are extending their liquidity facilities and slashing official interest rates. While this does help commercial banks with meeting their immediate needs for cash, it is nothing short of financial Armageddon for investment banks. However, because so many commercial and investment banks are intertwined, policy makers are faced with a situation where, no matter their decision, it will have a negative impact across the board. Whatever Central Banks do, or even if they do nothing at all, dire consequences will follow. In this scenario, their priority becomes damage control, as they try to choose the least harmful options in search of an appropriate balance. What would you do if you were a decision maker? Would you provide cash to hold off the collapse of commercial banks, or would you try to constrain money supply to save investment banks and financial markets?

Read MoreThe Looming $600 Trillion Derivative Crisis! Banks Have Been Trading Gold That Doesn’t Exist

Bank Collapse Is Coming! Big Companies All Over The World Report Catastrophic Financial Results

For the last 10 years, we have had a booming global economy. Currently, we have a global panic and this economic growth looks as if it is coming to an end. The party is finally over! Globally, we are facing a very big economic downturn and we have reached to a point where everything has begun falling apart. The economy has come to an abrupt halt as supply chains break and anxiety spread all over. Millions of businesses have been impacted by the supply chains disruptions and this has triggered the biggest economic meltdown since the 2008 global financial crisis.

Read MoreBank Collapse Is Coming! Big Companies All Over The World Report Catastrophic Financial Results

The Panic Has Begun! Oil Crashes 30% As Stock Market Crash Continues !!

 

The financial markets are having the worst performance since the 2008 financial crisis. The S&P has the worst performance in a decade and now it is already down 5 percent. The Europe 600 index has dropped by 5.9 percent while the MSCI Asia Pacific Index sank by 4.1 percent. This is even worse than the 2010 flash crash because we never had such a big drop and the question is what will happen next to the stock market. Will we see a bounce or will the markets continue plummeting.

Read MoreThe Panic Has Begun! Oil Crashes 30% As Stock Market Crash Continues !!

Stock Market Crash Has Begun! We Have Never Seen This Since The Great Depression !!

 

The US economy has been slowing down and economists are predicting that a major economic collapse is coming. In a recent interview, Guggenheim’s Global CIO Scott Minerd said that the cognitive dissonance in the stock market is stunning as reflected by the ever rising prices and credit spreads. He expressed that this is not a buy the dip market but don’t try to catch a falling knife markets because prices have been plummeting for weeks. The stock market collapse has already begun!

Read MoreStock Market Crash Has Begun! We Have Never Seen This Since The Great Depression !!

10 NEW Signs Of China Imminent Economic Collapse & China’s Yuan CRASH!

Will the Chinese economic collapse happen in 2020? China is the second largest economy in the world and in the last two decades, China has experienced a significant economic growth. However, the China has many problems like enormous debts, bank runs, an aging population and many others. The growth in China has been fuelled by debts and poor policies and this has created a hyper bubble that will burst with a china’s yuan crash. People are always asking when the economic collapse will happen in China. For the last several years, we have seen several Chinese banks being shut down. Banks like Baoshang, Jinzhou and other banks have been shut within a very short time. These are some of the cases of bank collapse in China and economists are predicting more similar cases in days to come.

Read More10 NEW Signs Of China Imminent Economic Collapse & China’s Yuan CRASH!

It Smells Like Panic! Government’s Bank Can’t Stop The Stock Market Crash !!

Ever since the last stock market crash, unprecedented intervention by the us Government’s Bank has helped the financial system relatively stable. No matter what happened the Fed always solved the problem but they created the biggest stock market bubble in U.S history. Now they facing with the biggest challenge and it looks like they can do nothing to avoid the next financial crisis. They try to solve the problem with the same old way that worked well in the past and on Tuesday they announced an emergency rate cut and instead of rising the stock market started to crash.