Experts Warn Current Conflicts Distract from Liquidity Crisis That Could Spark Another Black Monday Crash
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Current geopolitical conflicts are distracting from threats to financial markets, which could spark another crash like Black Monday in 1987.
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The great lake of excess liquidity from years of easy money policies is evaporating as central banks hike rates to curb inflation.
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Markets seem oblivious that the Fed started tightening in March 2021 and other central banks followed, reducing money supply.
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Bond markets are confused, with yields on a rollercoaster, and this volatility could lead to a sudden reassessment of stock valuations like in 1987.
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The Fed is overlooking monetary causes and danger signs by focusing just on economic indicators, risking recession and a repeat of past crashes.