I had to share this.

And if you lose one leg in a wood-chipper accident you only need half as many shoes.

The first thing you need to understand is that there is three times as much money in the bond market as there is in the stock market.
The second thing to understand is that a lion's share of the derivatives market involves bond market fluctuations. The market for mortgage-backed securities derivatives is $12.2 Trillion.
So a bond market crash would have the same effect in the economy has a nuclear bomb going off.
Which brings us to this gem from the WSJ.

Stocks and bonds are falling in tandem at a pace not seen in decades, leaving investors with few places to hide from the market volatility.

Through Friday, the S&P 500 was down 13% for 2022 and the Bloomberg U.S. Aggregate bond index—largely U.S. Treasurys, highly rated corporate bonds and mortgage-backed securities—was off 9.5%. That puts them on track for their biggest simultaneous drop in Dow Jones Market Data going back to 1976. The only other time both indexes dropped for the year was in 1994, when the bond index declined 2.9% and the S&P 500 fell 1.5%.

It's actually worse than that. That 9.5% decline in bonds is only from this year. Bonds have been falling since last summer. (note: bond price and yield move in opposite directions)

Remember those negative yield bonds? Bonds that people bought knowing that they were going to lose money in the process. Last summer there were $1.5 Trillion of them. Today they are all gone.
Does that mean that the losses vanished with them? No. It means the losses on those bonds got locked in.

So those numbers are bad, but how much worse can they get? Glad you asked.

“As of Friday’s close, the S&P 500 was 13.9% below its January 2022 peak, putting it close to the range of a typical growth scare. If a median growth scare drawdown of 17.7% occurs, the S&P 500 would fall to ~3,950 this time around, while a late-2018-type drawdown of -19.8% would take the S&P 500 to ~3,850,” said Calvasina and Mahaffy. That’s even if the economy can avoid recession.

And if they are wrong in their core belief that recession can be avoided, they see much downside ahead, as “recession drawdowns since the 1920s for the S&P 500 have averaged ~32% vs. their prerecession peaks.”

Let's not kid ourselves. Fed tightening cycles always end in recessions. So the stock and bond market declines have only started.
Just look at what has happened to the IPO business.

Only 8 IPOs started trading in April, after 2 IPOs and March, and 8 each in January and February, down from the 24 to 43 range a year ago, and down from 61 at the peak in June, according to data from Renaissance Capital.
Of the four IPOs that started trading last week, one of them has kathoomphed 92% from the pop-peak, and another by 51%.

Only financial geeks have noticed what the major banks have been doing, and what they are doing doesn't look good.

(Reuters) -Some big U.S. banks have again started stockpiling cash to cushion potential loan losses due to growing worries over the war in Ukraine and the impact of inflation on the U.S. economy, although trading continues to be bright spot for Wall Street.

JPMorgan Chase & Co, Goldman Sachs Group Inc and Citigroup Inc combined put aside a $3.36 billion in credit loss reserves in the first quarter, the banks said.

The person writing this article is not good with math, because #1) JPMorgan Chase set aside $2.4 Billion and #2) Citi has set aside $1.9 Billion.
So that's over $3.36 Billion before we know Goldman set aside $560 Million.