JOHN BURBANK: ‘This is the next one’…”It’s a house of cards, which appears to be fine until it isn’t.”
Julia La Roche
BusinessInsider.com
Oct. 9, 2015
John H. Burbank III, the chief investment officer of $4.1 billion Passport Capital, is warning of another crisis.
This time, it will be a liquidity crisis.
If the market sells off again there simply won’t be enough participants to take the other side of the trade.
“This is the next one — I guess I’d say this is the fourth one in 20 years. It doesn’t happen very often, and it’s always different. But I think the market is now going to discover just how much liquidity is in the market,” Burbank said on RealVision Television, a subscription financial-news service.
In that situation – the market will face a precipitous decline if even a small amount of funds look to sell.
The models didn’t work
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