5 Urgent Warnings From Big Banks That The "Economy Has Gone Suicidal"

Tyler Durden's picture

Submitted by Mac Slavo via SHTFPlan.com,

The economy has gone suicidal.

It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.

While the general population is obsessed with the details of the world’s most entertaining and bizarre election in American history, the big banks are gearing up for a deadly serious economic collapse.

Just during the past few weeks, there have been major discussions about stock markets dropping, the insolvency of Europe’s biggest investment bank, the mounting debt crisis and a deeper, long-term decline for ‘everyday Americans.’

Here’s what you probably missed while the Hillary-Trump cage match has taken over the collective psyche:

1. HSBC Issues “Red Alert” Over Imminent Sell-Off of Stocks

The U.S. stock market is artificially propped up by the Federal Reserve, but their ability to stimulate the economy has worn off. Immunity has set in, and they’ve got nothing left.

It is only a matter of time until Yellen raises rates.

When the shoe drops, everything falls with it.

via Business Insider:

In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks.




In late September, Gunn said the stock market’s moves looked eerily similar to those just before the 1987 stock market crash. Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. “With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT,” Gunn said.

2. I.M.F. Issues “Stability Warning” Over Deutsche Bank

Germany’s – and Europe’s – largest investment bank is in the midst of a terrible crisis with its balance sheets, overloaded with toxic debt that is big enough to topple several continents. Goldman Sachs and others, of course, have echoed their concerns.

According to the NY Times:

“The focus of investors has shifted from the level of capital to the business model, and that is why banks are under pressure,” said Peter Dattels, deputy director in the I.M.F.’s capital markets division.


In their report, the fund’s economists argued that the problems with European banks were deeply structural: a toxic brew of low levels of capital, troubled loans and business models that no longer delivered profits in an era of low growth and negative interest rates.


In particular, Mr. Dattels said, “banks are transitioning from outdated business models that rely on large scale balance sheets,” saying that Deutsche Bank fell into this bucket.


Economists and regulators have argued that Deutsche Bank, given its size and culture of risk-taking, poses more of a risk to financial markets than its peers in Europe and the United States.

As per usual with the haunting spectre of 2008, Deutsche Bank’s demise threatens contagion on a global basis, and will almost certainly infect U.S. markets as well.

3. Bank of America Warns That a Recession is Imminent, and Unavoidable

As SHTF reported, even the big banks are being forced to admit that stimulus is no longer working, and that consequences are happening.

The Fed’s disastrous rescue plan after the 2008 financial crisis has left the U.S. economy in a fragile and vulnerable state.


via CNBC:

“We are seven years into a full-fledged, all out, central bankers doing everything they can to stimulate demand,” Bank of America-Merrill Lynch’s head of U.S. equity and quantitative strategy Savita Subramanian recently warned on CNBC’s ” Fast Money .”


“We looked at all of these indicators that have been pretty good at forecasting recessions and we extrapolated that if they follow the current trends they’re on, we’re going to hit a recession sometime in the second half of next year.”




“What scares me is the market been so fragile.

Again, we’re playing with musical chairs here, not theoretical possibilities. The recording will end, and play time will be over.

4. Macquarie Group’s Leading Investor Warns That the Private Sector Will Never Recover From QE3… and the Age of Human Jobs Is Over

Federal Reserve monetary policy has absolutely eviscerated small businesses. Even typical players in investment markets are no longer able to get returns in private investment.

This is forcing a de facto state-run economy, and to make matters worse, all the humans are about to be laid off as robots take their jobs.

In the coming decade, 3.5 million truckers will lose their jobs, and along with will go waitresses, secretaries, teachers, office workers and much more. What then?

As SHTF reported:

The head of the investment banking firm Macquarie Group went even further, cautioning that we are witnessing nothing short of a terminal economy… one which they very well might not be able to put back together again:


via the Epoch Times:

Global central banks with their easy money policies of negative interest rates and quantitative easing are working against a debt deflation scenario, with limited success, according to Shvets. “That was the entire idea of aggressive monetary policies: Stimulate investment and consumption. None of that works, there is no evidence. It can impact asset prices, but they don’t flow into the real economy,” he said.




“There is no productivity on a global basis… The private sector will never recover, it will never multiply money again…”

5. The Bank of International Settlements – the Central Bank of Central Banks – Warns of Chinese Economy Meltdown

Our financial problems are global in nature, and markets in China are just as vulnerable to collapse. Basically, all the major economies are playing the same dangerous shell game.

As Michael Snyder reported:

The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.


At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.


The Bank for International Settlements warned in its quarterly report that China’s “credit to GDP gap” has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia’s speculative boom on 1997 or in the US subprime bubble before the Lehman crisis. (source)

But of course there is more.

Put this together with the downright eerie predictions of ranking figures in Goldman Sachs and JP Morgan Chase.

• Goldman Sachs warns that the “Third Wave” of the financial crisis is upon us, and will be the worst phase of it yet:

This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.


This triple whammy has its roots in the response to the first two waves of crisis — the banking collapse and European sovereign-debt crisis — and it is all part of the so-called debt supercycle of the past few decades. (source)

• JP Morgan Chase CEO Jamie Dimon warned last year that a “volatile crisis” is coming.

He is preparing his firm to dig deeper into control over the digital grid, and the fees, penalties and surcharges that go along with it.

As SHTF reported:

The trigger to the next crisis will not be the same as the trigger to the last one – but there will be another crisis. Triggering events could be geopolitical (the 1973 Middle East crisis), a recession where the Fed rapidly increases interest rates (the 1980-1982 recession), a commodities price collapse (oil in the late 1980s), the commercial real estate crisis (in the early 1990s), the Asian crisis (in 1997), so-called “bubbles” (the 2000 Internet bubble and the 2008 mortgage/housing bubble), etc




These “reaction” transactions of the next financial crisis will be intensified by the new financial terrain:

• automated, rapid via computers, algorithms, big data;

• “shallow markets” and threatened with “illiquidity”;

• positioned to charge for deposits and transactions while less likely to lend and returning little or no interest;

• vulnerable to cyber theft and subject to account freezes;

• market “depth” limited by gravity of actions of big fish in the pond – big banks, Federal Reserve bond purchases, derivatives moved by enormous players and rapid computerized trades; dark pools of billionaires steering big deals from the shadows;

What do they know that we don’t, and how bad is it going to be? More importantly, are you prepared to survive such a crisis?

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Theta_Burn's picture

Wait...didn't they cause all this? and wasn't it repaired with trillions of taxpayer dollars?

Will someone finally go to jail?



Escrava Isaura's picture

Wait a minute. I was told that the people on food stamp and basic healthcare were the problem.


AtATrESICI's picture

of course it is, it could never be due to state capital welfare for oligarchs. everything they do is for the good of the children and the downtrodden. oh sorry also for the LBGTQ folks too.

filmmaker's picture
filmmaker (not verified) AtATrESICI Oct 15, 2016 4:37 PM

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... http://tiny.cc/edszfy

WillyGroper's picture

how do these people get in here?


BuddyEffed's picture

We chewed right through the sweet spot and kept going. Now back to feeding on the crumbs of the crust.

Loftie's picture
Loftie (not verified) BuddyEffed Oct 15, 2016 9:31 PM

These folks are DEFINITELY not eating CRUMBS.

philipat's picture

Hey Loftie, previously known as mofio then santafe then Aristotle of Greece then Gargoyle then bleu then oops then lance-a-lot and others. Lance-a-lot got banned very quickly so time to re-use another old persona (non grata)?

You are a serial spammer and a serial pain in the ass. Might I politely suggest that you go fuck yourself? And get a life.

PS. You might have noticed that my attempt to expose you for what you are is always the same. That’s because your Spam is always the same (Using fake links to your BS site which has no connection to your comments, which are deliberately dramatic to encourage people to click on the fake link) so it seems only fair that my exposure of your crap should also always be the same. An eye for an eye.

OverTheHedge's picture

It's going to be interesting to see who gets bored first - you or the spamming muppet. My money is on you; the Muppet has been with us for quite some time.

It's a bit like that ugly stain on the ceiling: when you first had the water-leak, the stain was huge, and intrusive, and just ugly. But time goes by, and you stop noticing it. Eventually, a visitor points it out and you are surprised to see it is still there. Unfortunately, I think our friend Loftie is as tenacious as an unpleasant, mouldy stain, with all the staying power to go with it. Eventually you will learn to live with it.

TheSkipper1967's picture

Keep up the good work Phil.  Its appreciated.   

curbjob's picture

"Wait a minute. I was told that the people on food stamp and basic healthcare were the problem"



The State Dept  blamed it on the release of a rap video 

Rabbi Chaim Cohen's picture

Widows and orphans should be provided for from voluntary contributions. I will be first in line. Everyone else and all other forms of forced charity and wealth redistribution should all be on a 5 year 50% cessation plan and a hard 100% stoppage at 5 years. This means farmers, corporate wolves, or nerdowells wanting to buy cigarettes and booze on the EBT cards will all have to fend for themselves, period. Get people back to work. Let creative destruction do it's work.

We must end this corruption and never to be allow these largesse programs to spring up again. This removes much of the power and corruptability of the Federal Government. They can then go back to providing for a common defense, negotiating treaties in the best interest of the citizens, and building roads and bridges like they were supposed to be doing all along.

sun tzu's picture

The gravy train must not be derailed

Kidbuck's picture

I'm with you on this sort of plan. The gradual reduction of free shit is a tad better than cold turkey. Politically impossible to ever accomplish though. Would take generations of moral education, first. We have never even reduced the rate of increase of free shit, let alone an absolute reduction in free shit.

Just to clarify: If it's forced it isn't charity. It's theft. If you are stealing Peter's money to give to Paul it's still theft.

Escrava Isaura's picture

So, focus on the disease and not on the symptoms.

Change the money system.

"Once a nation parts with the control of its currency and credit, it matters not who makes the nation's laws. ... Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile." Mackenzie King, Canadian Prime Minister 1935-1948.




TheReplacement's picture

They are.  They take a measley pittance for their time and vote for the oligarchic criminals who then plunder my ass via taxes, fees, and regulations that go mainly to DC and Wall Street.

This IS Socialism

VD's picture

do not believe any of these banks... "markets" to infinity...

JonNadler's picture

consider the source, HSBC, Bof A, IMF, Goldman and JPM HA HA HA I mean is ther a bigger collection of psychopathic liers?


If a market collapse was indeed coming, they'd be too busy shorting everything in sight and telling us to BUY!!!!

JRobby's picture

The big big players are short until......how will anything settle when it locks up?

Tangible valuables are stored in alpine vaults and other stashes. 

Looks like war?

Sudden Debt's picture

What isn't really talked about is AI and robotics in todays news.

By 2020 we'll have the first computers that are as smart as a human, that's only 3 years from now.

By 2022 we'll have computers as smart as einstein

By 2030 computers will be 700 times smarter then humans.


Technology is going to make another high jump in our society is totally not prepared for this.

Productivty will take a moonshot and everything will get oversupplied.

Robotics is so cheap and will be even cheaper that everybody will be able to start a production fascility.

Big companies will fail, large structures will fail, you name it.

And as costs will be very low, prices will drop and profits will drop.

And that's even totally without the problems from the banks or our broke countries.

Our society will need to change bigtime or we're doomed. In 10 years, you won't recognize our society anymore

What will we do when 95% or our jobs will be automated?

And those who won't automate are doomed.

And automation will also improve each year where competition will destroy any profit.


HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Sudden Debt Oct 15, 2016 4:42 PM

Not everything can be automated. You may be able to use a large-scale 3D printer to create imitation wood so that you can build a new deck but you still need a carpenter to install the deck and attach it to your house in a safe manner. There are many things that can only be done with human hands and eyes involved.

There are still several billion people that will a labor source for manufacturing and will make clothing and textiles and similar products.

High-end quality products will continue to be sold and wanted because they have been handcrafted by master craftsman or artisans with a particular skill. Due to cheaply made and widely available mass produced products people will want items that are higher quality and that are unique in some way.

The one thing that could be automated is the government. Try calling someone at a .gov office. Good luck if they even answer their phone. Or return an e-mail. Or call you back. I hope the one class of employees that gets automated out of a job are .gov workers. CYA! Don't let the door hit you in the ass on the way out!

any_mouse's picture

How do consumers get currency to consume?

Employed as safety inspectors at the robotic robot plants? Conductors on automated trains?

Every robot requires a human partner. "Total Recall 2070". The human will share in the productivity of the robot.

Kudos if government is automated. Useless bureaucrats. Mostly they do not use judgment in their jobs. I'd rather deal with a kiosk than most of the gov workers. Kiosks do not take breaks when the lines get long.

Then there would be more unemployed eaters. Taxpayers will support them either way.

The only way this can go, as it always has for thousands of years, is with a tectonic shift.

OceanX's picture

"...you still need a carpenter to install the deck"

Or, just use bricks:  https://www.youtube.com/watch?v=_rQIH0Bnb8g

WillyGroper's picture

"and will make clothing and textiles"

that too is changing big time.

seen the car lot canopies?  those are fused, not a stitch.

textiles/clothing is headed in that direction.


PresidentCamacho's picture

I know robots and some of them become quite fond of. Robots can put a deck on a house and soon do it better cheaper and faster.

Escrava Isaura's picture

What are you smoking there, darling?

Now, may I ask, where will the energy and resources for all of these come from?


Gregg Armstrong: I have not seen any quantitative examples showing how much more massively resource intensive the renewable energy sources are over conventional sources. The following is a rough comparison.

The Laws of Thermodynamics requires that renewable energy sources will consume far more resources per unit of energy produced. That is because they extract energy from very diffuse sources such as sunshine, via thermal or photovoltaic collectors, or from wind with wind turbines.

The installed cost of a nameplate rated 1.5 Mega-Watt wind turbine is around $1.5 million ($1 million per Mega-Watt). The average wind turbine will randomly produce 21% of its rated nameplate capacity over a calendar year of operation .21 X 1.5 MW = 315 kW, $3.17 million per MW). Therefore it’s neither suited for base load (scheduled) or peaking load (on demand). Therefore it requires backup for when not in operation. Not only that, but it will consume significant energy from the grid during cold weather, to keep sensitive components and lubricants warm, and also to set blade angles and turbine heading.

The 6.7 liter Diesel engine Ford F-250 is rated at 440 horsepower (325 kW) and 860 foot-pounds of torque. [Without internal modifications diesel performance tuners easily extract 800 horsepower from these engines.]. Simply reprogramming the existing engine control unit (ECU) would easily produce much more than the 315 kW that the 1.5 MW wind turbine produces on average.

The Diesel engine option costs an extra $8,595 over the gasoline engine equipped F-250 MSRP. The total MSRP for the engine is probably around $15,000. Deleting the truck-specific accessories (air conditioning compressor, power steering pump, etc.). adding a 3-phase 325 kW alternating current load would probably not add more than $30,000 in additional cost. Total cost including installation would probably be around $50,000 ($0.15 million / MW). [Note that Alibaba.com lists a new Volvo 400 kVA (volt-ampere) diesel generator in single unit quantity at $58,000 and multi-unit quantities at $45,000.]

The cost ratio between the wind turbine and the diesel generator is about 21 ( ($3.17 million / MW) / ($0.15 million / MW) = 21.1). The diesel generator set would be practical as backup power but it could also provide base load capability which the wind turbine cannot perform. Also installation is far cheaper and requires far less land than a wind turbine.

Granted, this is not by any means an apples-to-apples comparison. But, it provides a good example of the massive disparity in resource requirements. Note that a gas turbine, an aircraft engine converted to function as a fixed power source, fueled by natural gas or jet fuel, would provide far more power and perform more efficiently than the Diesel engine example, especially because the exhaust gas energy can be captured in CHP (combined heat & power) installations. But, I don’t have any gas turbine power figures or cost data for comparison purposes.

The wind turbine solution is roughly 21 times (~2,000%) more resource intensive than the diesel generator solution, assuming that dollars roughly equals physical resources consumed. Plus, the wind turbine requires significant inputs of liquid transportation fuels at all phases of production and installation, from raw resource extraction to final installation and maintenance. Without liquid transportation fuels wind turbine fabrication and installation is simply not possible.




jmack's picture

you could buy used diesel generators at discounts when oil dropped, the oilfield uses a ton of generators from light plants that can easily run a 20 amp recreation vehicle to 50 amp purpose built gensets.   the light plants run 8-12K new,  a used one could go from 4-6k depending on age and the desperation of the seller.



Lurk Skywatcher's picture

Another little know fact is that the diesel engine was invented to run on vegetable oil. And it still can.

WillyGroper's picture

"By 2020 we'll have the first computers that are as smart as a human, that's only 3 years from now.

By 2022 we'll have computers as smart as einstein"


then we should be rid of the oppressor's in a jif, eh?

Latitude25's picture

Oooooooo.  Terminator, War of the Machines

GreatUncle's picture

We will end up killing ourselves for work ...

The fucking robot going to nick all the soda and popcorn, sit on a hillside and watch us slaughter each other for that last fucking job.

No need to dirty the metal is there?

GreatUncle's picture

What these bankers are seeing is Yellens rate rise policy starting to take effect, consequences now becoming real.

Seen a friend chopping logs with some gizmo today. He had this contraption making it so easy. Stopped for a chat and said how long would that have taken you 50 years ago. "Yea, I know" here agreed "rember it well would have took a week". So that weeks work is now 1 day.

Didn't have the heart to tell him the robot will be doing it soon.

Now in this those logs is the rapid deflation, the truth being the labor cost is being stripped out but governments on the other hand are now trying to force inflation. fighting against this deflation to preserve themselves. That cheap way out to beat the great depression never worked, total Krugman fail because it allowed politicians to pretend the debt never has to be paid if you didn't take into account increasing efficiency of production.

Hey Keynesian Krugman you cunt, this artificial stimulus you propose for infrastructure, is it going to be work for robots only? Do robots not have a responsibility to pay their fair share of the fucking debt too?

SHTF 2008 you can't earn the money to pay the interest on the debt except with QE, but handing it to the 1% did fuck all for the economy so in real terms it shrank. Now you can't really justify the stock prices to earnings, that is the bubble.

If you can justify the price from earnings then no bubble, all stocks and bonds are a bubble with of course the housing bubble for the masses to feel good.

Go on raise interest rates, goign to love this if they raise interest rates they will have to QE to support the debt. The QE will happen anyway, the rate rise just makes it sooner is all.

Try to always have tangible materials ... gold, silver ... but anything TBH for when they come for the final steal and the bail in leave them nothing or even better an IOU.

So Bankers, how do you envisage getting out of this shit? Solution people, hanging is one but all ears for any other options not more lame fucking excuses.

rareddy's picture

You probably would go long on buggy whips in 1920 too.


prophet_banker's picture

maybe google and uber can figure out how to put 3 million truckers out of work, but good look trying to get through a midwestern snowstorm without crashing

Kidbuck's picture

Define smart vs wise. Smart people start all the wars and welfare programs. Stupider people are drafted to fight the wars and are plundered to pay for the welfare programs. AI won't learn right from wrong on its own.

Kidbuck's picture

Tanks in the streets unless we reach deep and bail out these essential patriotic businesses.

(Can I have my hank paulson size consulting fee in cash please)

kliguy38's picture

LOL......recession??? We're in and have been in a depression.......its all masked..... Its not the fall that kills you....its the landing

HockeyFool's picture

Fear porn that ends with click bait for an 'The End Is Near' book. Thanks for wastuing my time.

consider me gone's picture

Run! And keep running until you stop, exhausted and ask yourself WTF am i doing? Then a neighbor walking their dog will pass you, wish you a good evening and continue on their relaxed way. It'll be about that time you will realize you've been worked. Hopefully, you will have remembered to put on your pants before you ran out of the house in hysteria. In other words, if all this doom porn is correct, where will I go and what the hell will I do to avoid it? There will be a financial reckoning but will running around like my hair is on fire help? 

Kidbuck's picture

Even Christ preaching always had a tin cup at his feet.

Proofreder's picture

Perhaps it will be the fall in prices - a deflationary depression pulled out by war ???   Bad thinking in the age of Nukes.

in 1936, 80 years past, the average cost of new house $3,925.00, Average wages per year $1,713.00. Cost of a gallon of Gas - 10 cents. Average cost for house rent $24.00 per month. A loaf of Bread 8 cents. A pound of Hamburger Meat - 12 cents.  New Studebaker $665.00.

And, the stock market index was 180.   A hundred times lower than 2016.  

The difference has been put in bankster's pockets.

roadhazard's picture

I believe it's the Banks, Wall Street and the FED that have gone suicidal. The economy is just a reaction.

GUS100CORRINA's picture

Actually, our current situation is very explainable if and only if you buy into the premise that America is under the Judgment and Wrath of the GOD of the Bible. Below is the support for this premise in just several Bible verses. These verses are sobering reminder that WE in America are not masters of our own destiny. These verses are sobering.

[2Th 2:11-12 NKJV] 11 And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness.

[Eze 7:4 NKJV] 4 My eye will not spare you, Nor will I have pity; But I will repay your ways, And your abominations will be in your midst; Then you shall know that I [am] the LORD!'

[Psa 81:11-12 NKJV] 11 "But My people would not heed My voice, And [the Nation] would [have] none of Me. 12 So I gave them over to their own stubborn heart, To walk in their own counsels.

[Isa 3:4-5 NKJV] 4 "I will give children [to be] their princes, And babes shall rule over them. 5 The people will be oppressed, Every one by another and every one by his neighbor; The child will be insolent toward the elder, And the base toward the honorable."

[Isa 3:12 NKJV] 12 [As for] My people, children [are] their oppressors, And women rule over them. O My people! Those who lead you cause [you] to err, And destroy the way of your paths."


Enought said ... I need a drink!!!


Libtard's picture

Google Revelation 12 sign in the heavens. <><

consider me gone's picture

I'm a Christian but I have to admit that on younger days the Old Testament stuff just seemed batshit crazy to me. But with each passing year I gain more understanding of what really is going on in the world and that OT stuff is not only not crazy but spot on. Ruled by children and women. Ain't that the freaking truth!

prophet_banker's picture

And Jesus flipping over the money changers tables sets a great example of where to direct our use of force, collectively and indivudually.  That doesn't mean we burn the bridge of finance through money creation with loans, we reclaim it as a public utility. Public Banking Institute is a great place to look.

roadhazard's picture

Sorry I'm not into religion as a source.

The Duke of New York A No.1's picture

Don't worry ... if the markets tank; just remember - it ain't Barrys/Billary's fault ... it all because of those Rooskie Hackers, lol.

AtATrESICI's picture

but CNN said that it is true and they have a racketeered i mean track record as a hard driving journalistic outfit. not, i hope against hope people are not buying the Rooskie hacking narrative.