Thanks to lingering anxiety about the ongoing trade war and rhetoric between the United States and China, futures indicated that the Dow would open over 400 points lower this morning. Couple that with the expectation that the sell-off will continue, the economic recession could very well be in the beginning stages.
A potential catastrophe could occur when the current economic bubble bursts and Peter Schiff has been warning of this for a while now. The signs of economic distress are finally showing up as global markets tumbled Tuesday with European stocks touching a two-year low while United States equity futures are deep in the red.
JP Morgan’s senior analysts, Marko Kolanovic, has come out with what he thinks the next financial crisis is going to look like. Kolanovic explained his prediction and reasoning in a report issued earlier this month, in which he believes a precipitous decline in stocks could cause the Great Liquidity Crisis.