Next stock market crash: JPMorgan blueprint, social conflict warning

Reuters / Scott Olson

• JPMorgan’s global head of quantitative and derivatives
  strategy, Marko Kolanovic, lays out his template for the next
  big market crash.
• Kolanovic attributes the dangerous conditions currently
  facing markets to seven key developments since the 2008
  financial crisis.
• He even goes as far as to make a dire prediction about
  how a negative market event will affect social
  harmony.

An idealistic follower of financial markets might tell you that
we learned our lesson following the crisis that rocked the globe a
decade ago.

Banking regulations were ramped up to prevent the type of risky
behavior that doomed markets, and investors have repeatedly been
warned to check their euphoria this time around.

But a new report from JPMorgan suggests that — despite our
best efforts — we’re hurtling towards a similarly painful
reckoning.

And once again, a familiar foe is working against harmonious
market conditions: a lack of liquidity. …

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