Global Financial Crisis Coming Soon

in #money7 years ago

A global financial crisis is coming that will be much worse than 2008. In 2008 the markets didn't correct to fair value. Instead, the fed and government intervened by bailing out the banks. However, since 2008 the debt has doubled and the derivatives market has grown much larger. Why are derivatives important? Well because derivatives are a form of gambling that the banks are exposed to in the financial industry. It is why 2008 was so bad. Banks are so heavily exposed to these derivatives 20-70X their assets on their balance sheets, that Lehman brothers collapsed after just a 3% loss. So unless you believe real estate and the stock market can continue to rise forever then you can bet there will be a major devastation to the financial system which will implode the entire system because in no way will the tax payers allow another bailout (this time trillions of dollars)

Sort:  

Congratulations @anti-propaganda! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Vote for @Steemitboard as a witness to get one more award and increased upvotes!

Coin Marketplace

STEEM 0.19
TRX 0.15
JST 0.029
BTC 63191.19
ETH 2615.47
USDT 1.00
SBD 2.73