In the financial world at this very moment we have 8 different “weather systems” that are all developing in real time. If several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008.
Modern severe financial crises can stem from the intersection of three separate but deeply intertwined risks – those of contagion risk, liquidity risk and counterparty risk, and this “perfect storm” that is developing is starting to look like it could potentially trigger all three of these risks.
This doesn’t mean a certain end of the financial world as we know it – this analysis isn’t a forecast or a “call” – but rather a “head’s up” that our radar map is starting to light up from one end to the other with notable developments.
Keep an eye on the radar, this could get interesting!
The original article (see HERE) assembles a step by step description of each of these 8 “weather systems” and how they interrelate.
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