What are the odds that we are really heading towards another financial crisis?
We have every indication to believe that after a 10 year bull run on the stock market, it is time for a collapse. Also due to the fact that this has been a phony recovery enabled mainly through government bailouts, massive depths and money printing we have never seen in history before.
A new financial crisis is likely the result.
I have every reason to believe this and feel the crisis in 2008 was only a light taste for what is coming. This time many governments will not be able to save the failing businesses or banks due to their massive depths.
It is just a logical result after years of quantitative easing (money printing) in combination with creating record high depths that we have never seen before, especially in the US but also many other countries.
Do also some research on the Great Depression and you will find striking similarities to where we are now. Artificially low interest rates for years, inflated stock market and a recently started trade
Financial institutions are aware of these risk and look for alternative asset classes in case the stock market collapses and we head into a bear market and financial collapse.
What are your thoughts on this?
No one actually knows when a recession will start. People have opinions based on past performance and personal experience. The problem is that past performance is worthless in todays world. High oil prices could return once U.S. shale producers are forced out of business. Millions of jobs were lost when oil prices plummeted. At the same time, many consumers bought new cars and SUVs when gas prices were low. They will be pinched when prices rise again. The U.S. economy had been living on borrowed money for a long time. The financial crisis scared businesses and families. That's why growth in this recovery is slower than in prior ones.