The market is at extreme risk of a ‘flash crash’ — here’s what could send it over the edge and trigger the next big meltdown

trader chart

Markets are going through an extremely turbulent patch right now as stocks, bonds, currencies, and commodities all face increasing volatility.
Bank of America Merrill Lynch explains how these conditions are ripe for a “flash crash,” and outlines what final steps must occur for the market to be plunged into widespread chaos.

There’s no denying it’s a turbulent time in markets.

Stocks suffered through an epically bad October, and came under renewed stress this past week. Debt markets faced serious pressure as the bonds for market stalwart General Electric tumbled to record lows. And oil is fresh off a 12-day skid — its longest of all time.

Turbulence has also rocked currency markets. The British pound-US dollar pairing has been particularly unstable in recent days as rate-hike guidance from the Federal Reserve and speculation around a Brexit collapse have whipsawed rates.

This rising cross-asset volatility is one of a handful of elements creating a highly vulnerable situation in markets — one that could result in a so-called flash crash, according to strategists at Bank of America Merrill Lynch.

BAML is also worried about what it describes as “vicious deleveraging,” which is when a company attempts to reduce its debt burden by quickly selling assets. This is a particularly pressing issue in China right now. And the US faces its own reckoning of sorts as the Fed hikes rates, which raises lending costs and makes refinancing more difficult.

There’s also what BAML refers to as “dislocation risk,” which can be highlighted by “abnormal spreads.” The example the firm provides is the spread between Libor and Euribor — both of which represent the rates at which European banks lend to one another.

As the chart below shows, the relationship between …read more

Source:: Business Insider

      

Word Game: Nov. 18, 2018

TODAY’S WORD — BRAGGADOCIO (BRAGGADOCIO: brag-uh-DOH-see-oh: Empty or pretentious bragging.)

Average mark 37 words

Time limit 60 minutes

Can you find 55 or more words in BRAGGADOCIO? TODAY’S WORD — BRAGGADOCIO bard bird boar board boor boric brad brag braid brig brio broad brood rabid radio ragbag raid road rood aboard abroad acid acrid agar agog airbag aria arid aroid gaga garb gird goad good grab grid grog door drab drag drib odor orca carb card cargo cigar cobra coda coir cord corgi crab crag crib

To purchase the Word Game book, visit WordGameBooks.com. Order it now for just $5 while supplies last!

RULES OF THE GAME:

1. Words must be of four or more letters.

2. Words that acquire four letters by the addition of “s,” such as “bats” or “dies,” are not allowed.

3. Additional words made by adding a “d” or an “s” may not be used. For example, if “bake” is used, “baked” or “bakes” are not allowed, but “bake” and “baking” are admissible.

4. Proper nouns, slang words, or vulgar or sexually explicit words are not allowed.

Contact Word Game creator Kathleen Saxe at kzsaxe@gmail.com.

…read more

Source:: The Mercury News – Entertainment

      

Bridge: Nov. 18, 2018

Tribune Content Agency

My friend the English professor, a stickler for grammar, asserts that using a double negative is a no-no. A disaster that can befall players in a team match is a “double game swing”: Their opponents score game at both tables.

In a match, one North-South played at four hearts on the auction shown, and West led a club. East won with the queen and led his singleton spade: three, queen, ace.

That defense was inadequate. South diagnosed the trump position: West had shown seven spades, had three or more clubs and hadn’t led a singleton diamond. So South let the jack of trumps ride, drew trumps and started the diamonds. Eventually, he discarded dummy’s remaining spades on high diamonds and ruffed his last spade in dummy, making four.

To beat four hearts, East had to shift to the K-A and a third diamond. West could ruff South’s jack, obliging dummy to overruff. Then, after South drew trumps, dummy would have none left, and South would lose a spade.

There was more toil and trouble at the other table. North-South bid to four hearts again, but West went to four spades and was doubled. North led the jack of hearts, winning, and then … led a second heart. West ruffed, led a diamond to dummy and returned a trump to the king and ace. He ruffed the next heart, took the queen of trumps and finessed in clubs. Making four.

To beat four spades, South could overtake North’s jack of hearts to lead his singleton club. When North took the ace of trumps, he could give South a club ruff and score a second trump trick.

East dealer

Neither side vulnerable

NORTH

S A 10 6

H J 10 8 5

D Q 7

C K 8 4 3

WEST

S K Q 9 8 7 5 4

H 4

D 9 3

C J 6 …read more

Source:: The Mercury News – Entertainment

      

Horoscopes: Nov. 18, 2018

CELEBRITIES BORN ON THIS DAY: Damon Wayans Jr., 36; Chloe Sevigny, 44; Owen Wilson, 50; Oscar Nunez, 60.

Happy Birthday: A realistic view of the past will help you make wiser choices moving forward. Being honest regarding your feelings about the importance of your relationships with others will help you gain better perspective. A change will do you good, but first resolve issues that are holding you back. Your numbers are 3, 11, 20, 26, 31, 34, 42.

ARIES (March 21-April 19): Emotions are welling and need to be channeled. Concentrate on something you love to do, or make plans with someone you enjoy spending time with. Talks will lead to promising plans that will give you something to look forward to. Romance is highlighted. 3 stars

TAURUS (April 20-May 20): Gather information. Check out courses and the qualifications required to do something that interests you. Set incentives and make plans that will energize and excite you to get started. Change begins within and leads to a better future. 3 stars

GEMINI (May 21-June 20): Opportunity is apparent, but not all opportunities are equal. Don’t lean toward an offer that sounds too good to be true. Do your homework and consider the logistics of what it is you are trying to achieve. Be honest with yourself. 4 stars

CANCER (June 21-July 22): It’s OK to do your own thing. You don’t have to bend to what someone else wants. Moodiness will surface and cause discord if you don’t follow your heart and do as you please. Offer others the same prerogative. 2 stars

LEO (July 23-Aug. 22): Short trips, physical activities and spending time with like-minded people should round out your day, but before you get started, make sure you are fully aware of the cost involved. Hidden expenses will set …read more

Source:: The Mercury News – Entertainment

      

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