Global Financial Stress Index Spikes Most Since 2011 US Downgrade

Tyler Durden's picture

Did central banks just lose control of the world... again?

For the first time in four months, BofAML's Global Financial Market Stress index has turned positive - signalling more market stress than normal.

As the spat between North Korea and the U.S. worsened, a measure of cross-asset risk, hedging demand and investor flows awakened from its torpor (after spending 78 straight days below zero - with stress below normal).

The problem the world faces is... did the world's central bank money-printing safety net just lose its plunge protection power?

For context, this is the biggest spike in the Global Financial Stress Index since the US ratings downgrade in August 2011 - and a bigger shock than the August 2015 China devaluation...

Sunday night futures should be fun: potential war with North Korea, potential war with Venezuela, trade war with China, and civil war looming at home.

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FreeShitter's picture

Just buy BTC and metals. 

BandGap's picture

Done many years ago.

The uncertainty of the certainty is the killer.

So much in the air it's impossible to see the path.......

FreeShitter's picture

Yeah NEO is looking good, I was tempted.....Just going to hold and acquire more BTC at every oportunity.

blue51's picture

I still haven't had the balls to buy Any bitcoin yet , but got another 2K rounds of 5.56 FMJ yesterday , so the week wasn't a total loss .

FreeShitter's picture

Dude you can never go wrong with that..Im thinking about placing bear traps all around my perimeter, I want the ones with them big fucking teeth :)

lester1's picture

No worries. The unaudited Federal Reserve's PPT will be buying stocks like crazy on Monday to keep this VIX under wraps. Just like they did August 24, 2015 by reversing a -500 point drop in the DOW in just 15 minutes. Anyone else remember that?


I honesrly don't give a shit about the stock market. It's crazy inflated. I bought more physical gold, BTC, and Comstock Mining ticker LODE stock on Friday. So I'm good to go.

Soul Glow's picture

Just in case there are any newbs on ZH here is the official statement on the executive order that ringfences the SEC, the Treasury, and private for profit major banks.  Yes, they collude, and it's official.

Executive Order 12631--Working Group on Financial Markets

lester1's picture

We all suspected central banks were covertly buying stocks, but The Federal Reserve's Plunge Protection Team outed themselves on August 24, 2015. No way in hell that recovery was legitimate buying. The DOW magically recovered 500 points on NO NEWS !! Who the hell is powerful enough to move markets like that ? It has to be the NY Federal Reserve and their Plunge Protection Team aka PPT, based at 33 Liberty Street NYC where they run their covert stock buying operations.

*Of course since the Fed is above the law and unaudited, they can get away with buying stocks using currency swaps and dark money pools to keep the stock market artificially propped up. I expect much more  crazy  marketmanipulation coming. That's why smart investors are moving to Bitcoin because the Fed hasn't figured out how to manipulate it.


Audit the Fed immediately !!!

Soul Glow's picture

ANd remember the election?  GOld up how much overnight?  Stocks down how much overnight?  And then out of no where the futures market was calm.  That took tens of billions of dollars at the stroke of a keytboard.  Who would do that?  Who could do that?  It would take all the major banks of the world - GS/JPM, BAC, WFC, MS, et al - or.....or it was the Fed, ECB, SNB, BoJ.  Or it was both, but there was yuge collusion to not have the markets panicked.

We are walking down the hallway into hell.  The end of this experiment will be fire and brimstone.  I do not pretend to know if the dollar will go up or if it will burn - I presume the latter.  I do not pretend to know if all assets will go to zero or if they will hyperiflate to nothing.  But I do stack silver because either way I want access to my assets.

coded language's picture


"... the Fed hasn't figured out how to manipulate it."


Wouldn't be so sure about that.

Trader Maximus's picture

crash will come after zerohedge has sucked every on in on shorts

Soul Glow's picture

Welp I guess that means no quantitative tightening....

....just in case you were wondering there was never going to be any quantitative tightening.

English herbsman's picture

Uncertainty is among us! Be afraid! Be very afraid and carry on as before, give the elite all your wealth and assets!!

Soul Glow's picture

Yup.  Just look at that chart.  Globalist banking assets are at all time highs.  And they think they can speak of "moral hazard" without us laughing!

divingengineer's picture

Cheer up, at least it's not the "worst since Lehman" yet.

hedgesofnight's picture

Does all time highs mean it can't go higher?  Didnt you say that 6 years ago.  haha

Soul Glow's picture

Uhm actually I've been the one saying - since 2010 on ZH - that stocks will go up up up and fiat currency will burn burn burn so no I haven't been saying that.

Hkan's picture

Same speed it goes out of control it jumps back. Never ending...signs...and predictions....still waiting to see real action.

Trader Maximus's picture

Finally this week could be the week that all the efforts of Zerohedge to talk down the markets for many years may begin to work. TOo bad all the suckers have been short while the Dow tripled. LOL   Thanks to Shepwave for giving us quality precise analysis.  Big difference.  ROFLMAO

Trader Maximus's picture

don't give me a down sign.  oh that must mean you are losing your aass like everyone else who has beel doom n gloom for the past 8 years.  Who is stupid now?

Soul Glow's picture

WHo are you writing to?  Yourself?  The down voters?  Just yelling at windmills?  You made a statement that ZH is traying to "talk down the markets".  WHich market?  Stocks?  ZH is full aware of the presistant inflation in the markets which are causing the housing boom (bubble) and the equity boom (bubble).  ZH may give an arb trade here or there but never has it once written "sell stocks now".  Sure they say what Gundlach is doing, or what Marc Faber is doing, but shit they even post what Gartman is doing.  And in these cases not every investor is bearish.

Now if you are speaking at the ZH audience, well sure, some people have been short, some have bought gold, and those peoples investments have diminished in price.  But first no gold bull really cares if the price goes down short term because he can just buy more, and as for yelling at short sellers how do you know they are on this thread?

I down junked you not because I disagree with your view on the market - I have been day trading stocks since the election knowing full well Wall Street had a boner for a Trump Presidency - but because I think your post is foolish.  COming on a thread and yelling at no one in particular looks idiotic.  If you want to fight than pick someone and square up.  This is FIght Club, not a Royal Rumble.

Soul Glow's picture

Effort of ZH to talk down the market?  Haven't you noticed ZH publishes op-eds by many different investors?  This site does not give investing advise, it publishes articles by people who give investing advise.  Like what Gundlach is doing, or shit even what Gartman is doing.  Then ZH looks at what the said and what happened retroactively - in Gartman's case it's never pretty.

So for you to think ZH is giving daily advise on how to trade the market is wrong.  It shows trends, speaks about how gold is an asset, shows BTC charts, but this is a news site, not a site that gives investing advise.  If it was you would be paying for it like a newsletter.

hedgesofnight's picture

You are right to a degree in that ZH shows trends but to say they do not have an obvious bias is just silly and ignorant.  Stick with the analysts who have the track record, not the hype.

hedgesofnight's picture

The Hedge will be right. Good job to the wave guys though. Last week's calls were too precise in timing. They knew something. 

Muppet's picture

So tired of this crap.  Can't we cover porn or sports or cars?  

Trader Maximus's picture

Zerohedge will accomplish their task of crashing this economy. IT WILL HAPPEN EVENTUALLY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

c2nnib2l's picture

dont forget aboug german elections

TeethVillage88s's picture

Wait, sub-Prime was Froze, US Downgraded, China Devalued?

Are you sure. Cause I know Santander has a shit load of US Sub-prime Autos, no reason to think any of this other stuff like a freeze on subprime house took place.

- pssst, I heard there was nearly $700 B in systemically important US Derivatives still outstanding globally
- Also... Death to the Ayatollah