New rules for banks may make crises worse, stability agency says

FRANKFURT (Reuters) – New accounting rules for banks risk exacerbating economic crises by making them reluctant to lend if the economy suddenly worsens, the European Union’s financial stability watchdog said on Monday.

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When will Stock Market Crash? This Guy Predict One Possible Scenario…

Full credit to: Charles Hugh Smith

The one thing we can know with certainty is it won’t be easy to profit from the crash.

After 8+ years of phenomenal gains, it’s pretty obvious the global stock market rally is overdue for a credit-cycle downturn, and many research services of Wall Street heavyweights are sounding the alarm about the auto industry’s slump, the slowing of new credit and other fundamental indicators that a recession is becoming more likely.

Few have taken the risk of projecting a date for the crash, this gent being a gutsy outlier: Hedge Fund CIO Sets The Day When The Next Crash Begins.

Next February is a good guess, as recessions and market downturns tend to lag the credit market by about 9 months.

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5% correction might happen on this market this June

Summary: US equity markets made new all-time highs again this past week. By Friday, SPX had risen 7 days in a row; that type of trend persistence has a strong tendency to carry the markets higher over the next week(s). While a period of higher volatility than what has been seen so far this year is odds-on, investors should not expect the bull market to be near an important top. Markets weaken before they reverse, and the existing trend has yet to weaken at all.

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