Stock Market Crash, Bitcoin Crash Certain as Stagflation Begins, Profits Slow After Evergrande Loss

Stock Market CRASH Certain after $300 Billion Default by China Evergrande, U.S. Stagflation Begins

US unemployment claims rise
https://abcnews.go.com/Business/wireStory/us-unemployment-claims-rise-hitting-pandemic-low-80054733

$300 Billion Default Pushes Chinese Real Estate Market to the Brink
https://news.yahoo.com/300-billion-default-pushes-chinese-183900617.html

Banks such as Nomura and Credit Suisse offer broker services to clients such as Archegos, lending them money to buy shares and other assets, while also processing their trades.
https://www.theguardian.com/business/2021/mar/29/credit-suisse-nomura-archegos-sell-off-hedge-fund

The fund also may have used contracts-for-difference, a type of short-term derivative that allows traders to bet on the entry and closing prices of a given stock.
But because both derivatives do not involve actually owning the shares themselves, Archegos was not required to disclose those positions.
https://finance.yahoo.com/news/pressure-mounts-on-financial-regulators-to-address-archegos-debacle-205020392.html

When you’re hit with a margin call you can either deposit additional cash, liquidate unmargined securities, or sell your stocks.

Archegos couldn’t meet its margin call.

This led to intense selling pressure on Friday in a number of the names that Archegos had taken concentrated positions in, as its lenders dumped Archegos’ positions at a pace described as unprecedented.
https://www.ig.com/en/news-and-trade-ideas/the-archegos-capital-management-meltdown–everything-you-need-to-210330

Fed warns of hidden leverage lurking in financial system
https://www.ft.com/content/cd723c4e-b182-416c-b511-bd3d516978d3

Credit Suisse ignored ‘warning signals’ before losing billions in hedge fund collapse – CNN
https://www.cnn.com/2021/07/29/investing/credit-suisse-archegos-report/index.html

Regulators around the world monitor collapse of US hedge fund
https://www.theguardian.com/business/2021/mar/29/credit-suisse-nomura-archegos-sell-off-hedge-fund

A massive bet on highly secretive derivatives may have sunk Archegos hedge fund – Fortune
https://www.marketwatch.com/story/here-are-the-complex-bets-at-the-heart-of-unprecedented-archegos-linked-30-billion-margin-call-11617051940

How many funds are a margin call away from failing like Archegos? — Quartz
https://qz.com/1991073/how-many-funds-are-a-margin-call-away-from-failing-like-archegos/

Here are the complex bets at the heart of ‘unprecedented’ Archegos-linked $30 billion margin call
https://www.marketwatch.com/story/here-are-the-complex-bets-at-the-heart-of-unprecedented-archegos-linked-30-billion-margin-call-11617051940

Margin debt hit another record high in March to top $822 billion, according to FINRA data
https://markets.businessinsider.com/news/stocks/finra-margin-debt-hit-another-record-march-topping-822-billion-2021-4

Hedge fund assets soar to record high amid boom in trading profits
https://www.cnbc.com/2021/06/02/hedge-fund-assets-soar-to-record-high-amid-boom-in-trading-profits.html

How many hedge funds are a margin call away from Archegos-style implosion?
https://finance.yahoo.com/news/many-hedge-funds-margin-call-140557717.html

What Caused the Biggest Jobs Miss on Record?
https://www.bloomberg.com/opinion/articles/2021-05-10/april-jobs-report-what-caused-the-biggest-data-miss-on-record

Uh-Oh! Market Leverage At All-Time High
https://www.forbes.com/sites/greatspeculations/2021/04/24/uh-oh-market-leverage-at-all-time-high/?sh=7b7ce2051e8a

More than 11 million Americans are behind on their rent and many could face eviction when the national housing protection expires in June.
https://www.cnbc.com/2021/05/31/millions-of-americans-could-face-eviction-as-housing-protection-expires-in-june.html

Consumer prices rising at fastest pace since 2008
https://www.cbsnews.com/news/inflation-rate-consumer-prices-rising-fastest-pace-since-2008/

Prices keep soaring: Inflation rockets to a 13-year high
https://www.cnn.com/2021/07/13/economy/june-consumer-price-inflation/index.html

An economy that was expected to grow at a sizzling 7% annual pace from July through September is now seen expanding at a more modest 3% to 3.5% clip, Wall Street DJIA, -0.76% forecasts show.
https://www.marketwatch.com/story/delta-and-shortages-trip-up-u-s-economy-and-spur-wall-street-to-chop-gdp-forecasts-11631036641

Producer prices surge 6.6% annually, most on record
https://www.foxbusiness.com/economy/producer-price-index-may-2021

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Author: H. A. Goodman

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