Market Rumor is Pimco and JP Morgan Halt Vacations to Prepare for Economic Crash and Stock Market Crash
On June 1, 2012 — market rumors were coming out of a hedge fund luncheon stating that Pimco, JP Morgan, and other financial companies were canceling summer vacations for employees so they could prepare for a major “Lehman Brothers” type economic crash projected for the coming months.
These rumors came on a day when the markets nearly came to capitulation, with the DOW falling more than 274 points and gold gaining over $63.00 as traders across the board fled stocks and moved into safer investments.
PIMCO asked employees to cancel vacations to have “all hands on deck” for a Lehman-type tail event while some heard the same for “some” at JPM when attending a hedge fund luncheon.
Market indicators over the past two months in Europe have been signaling an economic slowdown, with the potential for total economic collapse increasing over the past few weeks. The US markets have dropped more than 1000 points since their highs in March and on Friday, all gains for the year were completely wiped out after the shocking jobs report was issued.
Additionally, a new study from a former hedge fund manager on May 31st outlined that for the first time in the economic cycle, economies did not recover all their losses from prior recessions before going into a new one. The conclusions point to the need for a complete reset of the financial systems, as capitalism and central bank intervention (money printing) no longer have any real effect on economic growth.
When one company decides to cancel vacations, or impose additional workloads on their employees due to projected events, it is not considered relative news. However, when several institutions, analysts, and even the head of the World Bank acknowledge a coming crisis, then everyone needs to come to the realization that something big is on the horizon that will have an effect on both Wall Street and Main Street.
The rumors out on June 1 regarding Pimco and JP Morgan (Ticker Symbol: JPM) should be a wake up call to all investors that Friday’s market drops across the board are just the beginning of what could be a repeat of 2008, only much worse this time around.
Tags: Dow, Economic Crash, Economic Cycle, Economic Slowdown, Financial System, Gold, JP Morgan, JPM, Lehman Brothers, Main Street, Market Drop, Market Rumor, PIMCO, Recession, Stock Market Crash, Wall Street, World Bank