After reading a recent article and a discussion with a friend, I was left wondering what an investment bank would have to gain by claiming that a financial crisis is coming.
I can see an obvious answer which is that by instilling fear in the market you can lower stock prices of shares that you would be interested in buying. However I find that this is a very dangerous game to play, because if the panic spreads, overall their portfolio would lose a lot.
Whether their prediction is accurate or realistic doesn't concern me. I just want to know what they'd gain if they did lie about it.