Topic: Are we really heading towards another financial crisis? - page 3. (Read 486 times)

In case you missed it, the collapse already happened this February and the market is still struggling to recover from it.

Financial crisis of 2008 happened, because there were lots of investors interested in buying shares of mortgages, so companies that gave the mortgages on houses were lowering the standards and encouraging people with low income. As housing prices were growing, it seemed like these investments were completely secure. As prices were rising, people with debts couldn't pay for them anymore, so they were forced to give their houses away. The problem was that there was no demand for these houses anymore, so prices started to explode. I think the key problem was that there were too many figures there investing in less and less real products. House buyers had mortgages. Individual mortgages were combined and sold as shares to investors. Then there were also credit default swaps (insurances in case mortgages fail, but these insurance companies actually didn't have the budget to cover the damage) and investors into these insurances!
People were taking more risks than they naturally would, because they thought that other institutions are going to cover those risks.
Cryptocurrencies mainly have their own projects, products and partners. Moreover, they don't depend on anything apart from prosperous human society. The is also no net of insurances over insurances or stocks over stocks. I think we're safe here.

This. If all this financial crisis talk baffles you but you're scared anyway, you may as well start diversifying. All things considered, Bitcoin has a very positive outlook, so you're giving yourself insurance and at the same time positioning yourself for huge profits in the future.

I already do this anyway, but I personally don't think a financial crisis is going to befall us soon. They've been ringing these bells for years, just like Bitcoin FUDers on Bitcoin. I could easily be wrong, of course, but at least I'm protected to some degree.

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 today’s 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.

Well, you are not the first who are thinking about it. The stock market is so overheated and I am sure that it remains not so much time before the stock market will go down fast with a big clunk. I think that it will begin in the fourth quart of this year so it need to find a nice and safe place where to locate own money and earn a little. I do not want to buy gold or silver because these are in a correction  so I have decided to park a quite big part of my money in BTC and ETH

My thoughts about this is that you are completely right, many have described the crisis caused by real estate in the US as the biggest since the Great Depression but compared to it the real estate crisis was nothing, the banks and politicians are not dumb they know that the supposed growth that we are seeing is nothing but a lie, they are trying to buy time to try to maintain the economy as it is but nothing is working, so it is likely they have already accepted the fact that a financial tsunami is coming and they are taking their positions to take advantage of it, fortunately if you are holding bitcoin then you are in the right market, if the economic problems in Venezuela and in other countries have showed us something is that bitcoin will be used in a time of crisis.

I don't think that scenario is even possible, for me the world will defend themself from this, i do not believe that we could "achieve" something like that.

The best time for an economic crisis is when people can't remember the cause of the last economic crisis. Enter the present. Few can cite contributing factors leading to the 2008 economic crisis. And perhaps fewer are aware toxic assets associated with subprime mortages and the housing bubble may have constituted approximately 15% of the liability bubble which demanded big bankers be bailed out to avoid filing for bankruptcy. Not many know the 1999 repeal of glass steagall may have removed legal regulation created after the great depression, designed to prevent economic crisis. Or that key portions of regulation could be broken and may never be repaired.

The swiftness with which looming financial crisis around the world was generated could imply it was engineered. Like the tv show "I, Robot" someone may have intended to crash the world's financial/economic systems. Possibly to impose their own mandate and new world order.

Yes.  This is entirely possible, the only question is how and when this will happen, and what the consequences will be!

The government bailouts with tax payers money was just a temporary delay tactic, but it cannot stop the inevitable outcome of a financial system that is built on debt. You cannot continue printing toilet paper money, thinking that it will solve all your financial problems.

Banks and other financial services are protected by governments, so they can continue with their reckless games with other people's money.

http://www.usdebtclock.org/ ----- This is a problem for generations to come and Bitcoin cannot solve that.

It depends on your thoughts and actions.
The financial crisis is based solely on guesswork and unspecified comments.
All your actions also contribute to the market community.
However, according to the professional investors and the heads they will know what to do and have specific plans.
And the crisis will be unlikely. I believe so.

The thing with these massive legacy bubbles is that they can keep swelling for many more years, so it's pretty damn difficult to call the pop, but it's only a matter of time in the end.

The only thing I recommend people is to hedge the legacy economy as soon as possible to secure a great part of your wealth. Better safe than sorry.

Bitcoin is the perfect tool for that with how it's easy to obtain, easy to spend, and easy to store, where with Gold you either buy into a paper certificate (which is a worthless piece of paper in my opinion), or you buy the precious metal in physical form that will very likely end up in a safe deposit box within the nearest bank office. I'm obviously biased towards Bitcoin, but people should do what they think is right. If you believe Gold is the better option, then go for it, just make sure you actually do it.

I really like on how the way people looks forward the future result of cryptocurrency business, however it is only a form of speculation, although the question says negative result only, and there's is no assurance that soon it will truely happens, and I'm just praying that it will not happen soon, because many people who trust and needs extra income in cryptocurrency business to change their life in terms of financial stability.

There have been recent whisperings relating to a possible future financial crisis and
there are always factors at play which are close to causing a financial crisis.

Greece defaulting on its debt, another property bubble, quantitive easing, trade wars
have all been mentioned and I would love to know the thoughts of others on what
the negatives currently are.

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?