Buckle Up: Flash Crash risk extremely high for tomorrow (Friday)

 

A BILLION people worldwide are living under travel restrictions due to this spreading pandemic and we’re just getting started….

Rosenberg: ‘High Odds Bet’ the Coronavirus Will Cause a Global Recession

“I think very strongly that it probably is going to cause not just a recession, a global recession,” the chief economist and strategist at Rosenberg Research and Associates told BNN Bloomberg Thursday.

Coronavirus Paralyzes Global Credit Market As New Issuance Crashes To Zero

As Bloomberg points out, the $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus spreads panic across company boardrooms.

While hardly a surprise with US equity markets suffering one of their worst selloffs since the great depression, Wall Street banks recorded their third straight day without any high-grade bond offerings, an unheard of event – especially in this day and age of ravenous yield apetite – outside of holiday and seasonal slowdowns. Across the Atlantic, European debt bankers had their first day of 2020 without a deal on Wednesday. And bond issuance in Asia, where the virus first emerged, has also slowed to a trickle.

Fed Is Losing Its Credibility to Coronavirus – Bloomberg

The central bank is failing to act in the face of a threat to world growth, and for no good reason.

 

We are now in the worst stock market drop since financial crisis in 2008.

You know what comes next?

Credit markets freeze up…

Builders go bankrupt…

Housing market collapses.

Enjoy the ride.