Reason of Next Financial Crisis - page 2.

Febo

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Quote from: South Park on March 26, 2019, 02:18:23 PM

Quote from: Febo on March 23, 2019, 02:42:12 PM

Value of Bitcoin will decrease like value of any asset but it will recover quickly and most important people will take more interest in economy and understanding of what Bitcoin is.

When the crises in a country is so bad that it begins to affect its currency you will see that anything that can be used as a form of money goes up in value instead of going down and that is because people begin to try to find ways to store their wealth, so if the next economic crisis is so bad that it affects the whole world it is reasonable to assume that the value of bitcoin will go up and not down as people begin to appreciate a currency that cannot be confiscated by the government or inflated away.

But also people try to save some of their investments and sell others. Bitcoin is money and can be easily exchanged. Price of it will fro sure drastically decrease when crisis hits us.

Yesterday I just saw one nice info graphic about all bull runs after WW2. Longest was 114 months and our current is already 112 months. We are already in record holding longest bull run. So should end any month now.

https://www.visualcapitalist.com/visualizing-longest-bull-markets-modern-era/

hxtop

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Because of Trump's bad decisions, this crisis may come sooner. Although Americans think that his decisions are good for American Economy, they will see that it is a devastating strategy in a long term.

South Park

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Quote from: Febo on March 23, 2019, 02:42:12 PM

Value of Bitcoin will decrease like value of any asset but it will recover quickly and most important people will take more interest in economy and understanding of what Bitcoin is.

When the crises in a country is so bad that it begins to affect its currency you will see that anything that can be used as a form of money goes up in value instead of going down and that is because people begin to try to find ways to store their wealth, so if the next economic crisis is so bad that it affects the whole world it is reasonable to assume that the value of bitcoin will go up and not down as people begin to appreciate a currency that cannot be confiscated by the government or inflated away.

cizatext

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That is great this lending market have really affected most economy of many nations most especially when the is no enough return's bank to the capital market. A good review of the market will be a very good moves in the side of the government in other to avart future financial crises.

Febo

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Quote from: crzy on March 07, 2019, 08:13:40 AM

Well, its really going to happen but I think more years for this one.

Dont bet on to many years.

Quote from: darklus123 on March 08, 2019, 08:10:10 AM

If the global market are going down then for sure bitcoin can never be an alternative because Bitcoin will surely fall as well.

Unless bitcoin will no longer be USD dependent and is already sustainable(which is for now not that possible)

Value of Bitcoin will decrease like value of any asset but it will recover quickly and most important people will take more interest in economy and understanding of what Bitcoin is.

Pab

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Yet another article about leveraged loans problem
There early birds warnings in 2007 about household and mortgage debt problems
Now we have something much bigger
Companies and even big corporation loans what can trigger next really big crisis
Who will pay that.Will ordinary people pay from his taxes i think in that scenario we can see huge social rebel and nationalism and populism popularity grow

https://www.businessinsider.com/what-are-leveraged-loans-what-are-clos-and-should-you-be-worried-2019-3?r=US&IR=T

A vast swathe of companies, including Space X, Uber, and Tesla, have taken advantage of beneficial lending conditions of late to pile up large amounts of debt which has often come with loose legal requirements, known as covenant-lite, which provide lenders with limited protections.

banker William D. Cohan likened the repackaging of these loans to the debt instruments that helped trigger the financial crisis of 2008. He wrote:

"A decade ago, the high-yield investment du jour pushed by Wall Street was mortgage-backed securities— home mortgages that had been packaged up and sold as "safe" investments all over the world. Nowadays bankers and traders are pushing another form of supposedly "safe" investment, the "collateralized loan obligation," or C.L.O."

So who are the investors in CLOs? Think hedge funds, mutual funds and pension funds. In other words, as Cohan writes, "you and me."

South Park

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Quote from: bitbunnny on March 15, 2019, 12:20:40 PM

I think that the main reason for another financial crysis would be the one that people haven't learned anything from the last ones. Excessive lending and debt are rising, main world banks are still playing their games. Debts will accumulate to the level that no one couldn't handle them anymore and that might be the trigger.

It is not that they do not learn, they know very well what they are doing which makes this even more perverse, everyone knows that you cannot solve a debt crisis by getting more loans, in a smaller scale this is similar to the person that is trying to solve his credit card debt by passing his debt from one card to the other, this is the same as that and the same results will follow with the difference that the results will be global and everyone will feel the effects of the irresponsibility of banks.

gowobonyok

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there is another reason, namely China which gives interest on every loan from another country, it will make the debtor country will experience a crisis if they cannot pay. and if many countries do the same thing with China, it is not impossible that the global crisis will occur, but it is likely only 7% because China still offers another way to pay, which is controlling the country's land.

LUCKMCFLY

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Leveraged loans, when the private company takes these initiatives, is because it knows something, we must remember as a basic principle that in an economy where we know that the value of money may fall, due to inflation or any other cause, it is best to borrow the currency, because at the time you can cancel easier.

Many publications in networks, talk about possible crash of the world economy, of course, are only speculations, we can not lose sight of the interests that this type of loans entails must be very high, and somehow the bank can be profitable .

Compared with a Bitcoin deflationary economy, a totally decentralized economy is always shown, where in some operations there is also leverage, but with limits, if limits are exceeded, there is a risk of losing everything.

Economists do not recommend leverage, they only do it if and only if, the economy can fall, and if it has enough capacity to pay. An important economist, José Toro Hardy, states in one of his books, that the best business is to have debts in a currency that will suffer drops in inflation.

vv181

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Quote from: bitbunnny on March 15, 2019, 12:20:40 PM

I think that the main reason for another financial crysis would be the one that people haven't learned anything from the last ones. Excessive lending and debt are rising, main world banks are still playing their games. Debts will accumulate to the level that no one couldn't handle them anymore and that might be the trigger.

Agreed, People mostly are blinded by centralized financial institutions. Somehow they have a deluded trust toward it, while here in cryptocurrencies, the underlying technologies offer us a decentralized trustless system. Which if we actually compare it to any centralized entities, the differences would be significant.

mapanlah

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Quote from: crzy on March 07, 2019, 08:13:40 AM

Before, speculation says that the next financial crisis will happen because of the increasing debt of the world, and now another reason for us to enter into the world financial crisis again. Well, its really going to happen but I think more years for this one.

the most frequent reason for the world economic crisis is usually due to war, especially trade wars, so the crisis will always occur so we must be able to anticipate the worst possibility of the economic crisis by preparing all available resources.

andika2018

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Quote from: Naida_BR on March 15, 2019, 12:11:17 PM

Quote from: BitcoinTurk on March 15, 2019, 11:44:30 AM

Today's markets have become so unstable that the next financial crisis can happen in a moment of our lives without any reason. In particular, we can easily understand how risky a period we are having to take into account the markets, bad economic conditions and other factors that react, even with the words written or said by a few states. On the other hand, when we think of bad world conditions such as the shrinking world economy, growing trade wars and the poor people, we can feel how bad the days are waiting in the coming years or in the near future. Our future will no doubt be worse than today.

The reason that we are currently at risk is the fact that so many transactions happen daily and many of them are on behalf of debt.
When this debt is accumulated on certain entities then the financial crisis appear and all the people in the economic system that are involved are in danger. Hopefully, by acquiring and hodling bitcoin this risk is minimized.

Credit buble will happen again. We know that central banks always printing more than $75billion every months and they call it QE. More money supply in market will increase inflation risk and economic crisis is just a matter of time

Crypdon

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The leverage loans market is just another credit crunch that will cripple the economies of the world. They will need to switch to something else for protection - that of course is the bitcoin

bitbunnny

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I think that the main reason for another financial crysis would be the one that people haven't learned anything from the last ones. Excessive lending and debt are rising, main world banks are still playing their games. Debts will accumulate to the level that no one couldn't handle them anymore and that might be the trigger.

Naida_BR

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Quote from: BitcoinTurk on March 15, 2019, 11:44:30 AM

Today's markets have become so unstable that the next financial crisis can happen in a moment of our lives without any reason. In particular, we can easily understand how risky a period we are having to take into account the markets, bad economic conditions and other factors that react, even with the words written or said by a few states. On the other hand, when we think of bad world conditions such as the shrinking world economy, growing trade wars and the poor people, we can feel how bad the days are waiting in the coming years or in the near future. Our future will no doubt be worse than today.

The reason that we are currently at risk is the fact that so many transactions happen daily and many of them are on behalf of debt.
When this debt is accumulated on certain entities then the financial crisis appear and all the people in the economic system that are involved are in danger. Hopefully, by acquiring and hodling bitcoin this risk is minimized.

BitcoinTurk

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Today's markets have become so unstable that the next financial crisis can happen in a moment of our lives without any reason. In particular, we can easily understand how risky a period we are having to take into account the markets, bad economic conditions and other factors that react, even with the words written or said by a few states. On the other hand, when we think of bad world conditions such as the shrinking world economy, growing trade wars and the poor people, we can feel how bad the days are waiting in the coming years or in the near future. Our future will no doubt be worse than today.

mirawantirinjana

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for some governments in some countries, cryptocurrencies may be a big problem for their economy.

in the presence of a new currency, the cryptocurrency which is currently being sought by many people. some countries began to act in regulation and did not even allow cryptocurrencies to be used in their countries for several reasons, including the financial crisis and disrupting their country's financial stability.

South Park

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Quote from: buwaytress on March 09, 2019, 07:23:07 AM

What I really don't get is why people keep getting surprised by these cyclical economic crises. It's happening every 10-15 years, and it's been happening for every 100 years, with varying degrees of severity.

If the system is broke, then of course we're going to keep seeing these signs. We have to keep expecting it, because this is symptomatic of the disease.

Every time something like this happens, states and central banks move but only to put band aids. They're not willing to fix a system that's enriching them. Hopefully people wise up and seek alternatives. Bitcoin I won't say is the saviour, I'm not that idealist, but it's a great start.

Most people do not think that far ahead, they are only worried about what happens in their lives and nothing more, this is why they keep getting blindsided whenever a new crisis emerges and then begin to ask for answers for as long as the crisis lasts, but as soon as it is over everything returns to normal, bankers know this and they try to disguise the effects of the crisis so people stop thinking about what could be done to solve the issues that caused the crisis in the first place, but it seems to me they no longer have the means to solve the next crisis.

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Quote from: Pab on March 07, 2019, 08:00:40 AM

Reason of next economic crisis can be here

US officials say they will investigate the risky $1.6 trillion 'leveraged loan' market
Looks like deja vu from 2008 but much more bigger

Bank of England Governor Mark Carney compared it to the subprime mortgage crisis of 2007.
https://www.businessinsider.com/leveraged-loans-fsb-inquiry-into-16-trillion-market-2019-3?r=US&IR=T

The $1.6 trillion market has recently seen lending to companies with lower credit ratings occur at much greater levels than previously, leading to a proposed review later this year, FSB Chairman Randal Quarles told the Financial Time

The FT wrote: "Regulators could act if their findings point to actual hazards in the market for leveraged loans
I am curious what way regulators will deal with that.
But if that will happen bitcoin can be alternative

If that's because of that $1.6 trillion can cause conomic crisis then maybe those loans that are much bigger than $1.6trillion could also trigger a crisis? If I were to ask about , I don't think it can cause economic crisis. The ones that cause it is the corruptions happened in the government and not because of those loans.

richminded

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Quote from: daarul50 on March 09, 2019, 02:40:14 PM

We cannot stop the economic crisis in the future, needs always increase and inevitably have to borrow. Yes, it is true that bitcoin can be an alternative but do not let bitcoin become the cause of the economic crisis.

Its going to happen in every century for sure, but bitcoin is not the reason of that since many countries are dealing with their own problems financially. This market can be an alternative for sure, and hopefully the government will make good regulations on this when financial crisis happen.

Topic: Reason of Next Financial Crisis - page 2. (Read 562 times)