by Charles Hugh Smith
Since the first news of pandemic in late January, I’ve been discussing potential accelerants to the unraveling of our fragile financial system.
The system appears stable until a catalyst pushes it off the cliff.
Catalysts come in a variety of forms, from the apparently modest “straw that breaks the camel’s back” to a broad awakening that the status quo simply isn’t capable of adapting successfully to new realities.
Financial catalysts tend to result in sudden, cataclysmic collapses in liquidity, solvency and sentiment.