Wall Street Risks a Breaking Point After Week of Monetary Mania
- Extreme moves are flaring up across asset classes and regions
- Freakish gyrations put stress on risk models used by big money
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Central bankers are hellbent on tightening the monetary spigots even if something in financial markets breaks. After haywire cross-asset moves this week, that tipping point looks dangerously close.
As the S&P 500 plunged another 4.7% over five days, bonds and currencies staged historic gyrations that threaten to cause fresh havoc for stock investors already grappling with the lows of this bear market.