Bank of America Warns “Civil Unrest” Could Crash Global Economy
In its latest Fund Manager survey, Bank of America warns that one of the biggest risks that could precipitate a global economic collapse is the prospect of mass “civil unrest.”
While the market is looking bullish thanks to several rounds of positive news regarding a COVID-19 vaccine, BofA Chief Investment Officer Michael Hartnett is telling investors that that sentiment is baked in and it’s now time to “sell the vaccine” in coming weeks/months as we think we’re close to “full bull”.
Coronavirus itself remains the biggest “tail risk” to the global economy for the 8th consecutive month, followed by the “tech bubble.”
However, what’s really raising eyebrows is the factor that BofA considers to be the third most likely threat to financial stability and growth, namely “civil unrest.”
Zero Hedge explains exactly what Bank of America is referring to with its warning of “civil unrest”:
“So what’s going on here, is Wall Street really starting to worry about what we first said back in 2010 – much to Time Magazine’s mockery – that the Fed’s disastrous policies would eventually push US society to armed conflict and/or to civil war. While it may be easy to dismiss such fears as hyperbolic, consider what otherwise level-headed Bloomberg macro commentator (and former Lehman trader) Mark Cudmore wrote overnight in his latest lament that markets are so broken, that in the end it will all “end in tears”, either in the form of collapse of fiat currency or through “political revolution”, read armed conflict.”
“Which brings us back to square one. Because in a world where a handful of traders are the most bullish they have been in 20 years while the living standards of tens of millions of Americans are absolutely dismal with the economy on the verge of yet another depression-causing shutdown, the flashbacks to the days just before the French Revolution are all too real.”
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