All 3 breakers go off and by noon the markets are closed. The brokers call in their margin calls. The higher the drop the bigger the margin calls. The result is when the market crashes high leveraged investors need to liquidate other assetts like gold, silver, bitcoin, realestate to cover these margin calls. This causes all the other assets to crash.
Markets open and crash for 3 days. They call in the plunge protection team and try to stop the bleeding.
The people in cash can now buy assetts cheap. As peope sell all their assetts to cover margin calls the brokers liquidate any remaining stocks. Everyone has been buying the dip with borrowed funds, and were creating massive amounts of leverage in the markets so this will be bloody.
Dollar will blip up short term as every one needs cash to buy low cost assetts or pay off magin calls. Those who have cash will be buying gold silver bitcoin realestate etc cheap. Real cheap.
Currency crash against other countries and products starts to hit. People have to eat and need basic goods and these come from a global supply chain. . So now those who have food, toiletries, gas etc can sell at the highest price so inflation kicks in an this will be fast. Hyperinflation, within 1 month from the crash a loaf of bead will be $5 as companies who are over valued today that crashed will also need to sell products at the real cost.
Next comes the futures market where you purchased, gold, bitcoin and commodities like oranges, bacon etc. No one actually owns any of these assetts everyone just takes the cash. So if you buy Gold at 1350 but the value of the dollar has crashed you wont want the cash, you will want “good delivery”. This is a problem as paper gold is backed at 1000 to 1. For every 1 ounce of gold there are 1000 people who own it. How do you give 1 ounce of gold to 1000 people? So now the traders need consumers gold to cover the delivery. The price is now set by those who have gold and not the market manipulators.
People will not or can’t pay. And this is where all hell breaks loose.
h/t Johnny Cash