Bank of America has waned that one of the biggest consequences of mass “civil unrest” is a catastrophic global economic collapse.
BofA Chief Investment Officer Michael Hartnett told investors recently in a Fund Manager survey that it’s now time to “sell the vaccine” in the coming weeks as we’re close to “full bull.”
Coronavirus remains the biggest “tail risk” to the global economy for the 8th consecutive month, followed by the “tech bubble.”
However, what really stood out in the report is the factor that BofA considers to be the third most likely threat to the financial stability of the world, namely “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.”