{"id":1120641,"date":"2019-06-10T20:25:51","date_gmt":"2019-06-10T20:25:51","guid":{"rendered":"https:\/\/dailyreckoning.com\/?p=107499"},"modified":"2019-06-10T20:25:51","modified_gmt":"2019-06-10T20:25:51","slug":"rickards-perfect-storm-is-coming","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1120641","title":{"rendered":"Rickards: \u201cPerfect Storm\u201d Is Coming"},"content":{"rendered":"

This post Rickards: “Perfect Storm” Is Coming<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n

People often refer to the \u201cperfect storm.\u201d A perfect storm is generally understood as two or more events that are independent but converge to produce an outcome much worse than either event alone.<\/p>\n

The term is an overused clich\u00e9, and as a writer I avoid clich\u00e9s whenever possible. But though rare, perfect storms do exist. The most common example is the devastating 1991 storm popularized by the book and movie of the same name, although it was initially known as the \u201cHalloween storm.\u201d<\/p>\n

In that case, three separate weather dynamics all converged in one place on one day to produce a perfect storm. The odds of all three coming together at once were less than one in 100,000. That\u2019s less than once in 270 years. That\u2019s a perfect storm.<\/p>\n

Do metaphorical perfect storms happen in politics and capital markets?<\/p>\n

The answer is yes, provided the conditions of the perfect storm definition are satisfied. The multiple events that make up the true perfect storm must be independent and rare and come to converge in an almost impossible way.<\/p>\n

Unfortunately, a political and market perfect storm is now on the way and may strike as early as Halloween 2019, marking a new \u201cHalloween storm.\u201d Get ready.<\/p>\n

Today I\u2019ll be discussing the components making up this perfect storm, and how I see them all coming together at the same time.<\/p>\n

In my 40-plus years in banking and capital markets, I have lived through a number of financial fiascos that arguably qualify as perfect storms. Here\u2019s a partial list:<\/p>\n