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Topic: Reason of Next Financial Crisis - page 4. (Read 564 times)

full member
Activity: 1736
Merit: 121
March 07, 2019, 12:41:30 PM
#14
I think that policies and should be in place for banks in the loan that they give out. I do understand that their could be existing rules to that but maybe it should be reviewed.
copper member
Activity: 1050
Merit: 294
March 07, 2019, 11:51:10 AM
#13
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.

No doubt, the next crisis will happen due to increasing global debt but the truth is still debt of world is not at the financial crises level as it was before in 2007-2008.
I am wondering why people are cheering for it to happen, a financial crisis will never boost the bitcoin market/price as people are expecting, rather it will more destabilize the market.
legendary
Activity: 3248
Merit: 1402
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March 07, 2019, 09:50:17 AM
#12
Oh, come on! Do they really think that if the previous crisis was resolved very professionally by the US, it's okay to make the same mistake again? It's good that people started looking into this thing before it's too late. Hopefully, this can prevent the crisis. Anyway, I think that what will lead to the next global financial crisis is dollar hyperinflation when the US finally starts printing too much fiat because of a huge debt to other countries. Since dollar is kind of a standard of money, most of currencies will probably collapse shortly after. Maybe Euro ha sa chance of survival, but I am not sure. What could really save the situation then is cryptocurrencies with limited supply and decentralization.
hero member
Activity: 2702
Merit: 716
Nothing lasts forever
March 07, 2019, 09:28:33 AM
#11
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

The US economy is about $21+ trillion dollars in debt as of the end of 2018 and that is a really huge amount of money.
The amount is so huge that when the debt crisis occurs, U.S. won't be able to repay the whole amount and will probably drown in it.
This will severely affect the world economy and bitcoin has pretty good chances to be adopted at that time.
This is definite to happen but it will take years for it to happen and we can't say what the amount of debt will the U.S. economy hold at that time.
full member
Activity: 668
Merit: 100
DogData
March 07, 2019, 09:18:50 AM
#10
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.
absolutely right and in addition the declining price of the world economy will make the financial crisis impact because the weak economy is added to by the growing debt of the world
sr. member
Activity: 2366
Merit: 332
March 07, 2019, 09:01:59 AM
#9
I don’t even understand why financial crisis is happen where they can actually print money all night and pay all the debts. So many reasons for a financial crisis to happen

It will not be the best for the economy. It will lead to inflation. Inflation is as a result of too much money available in the economy and so used to purchase few goods which will make the price higher than necessary even if the quality is inferior.

Thus, printing money is not a remedy to financial crisis but good economic policies.

but for sure cryptocurrency will be a safe place for everyone and because of this expect a higher demand.

I also do believe that if crypto bull and very outrageous price will cause inflation too because it will mean too much cash in the economy.
hero member
Activity: 2618
Merit: 548
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March 07, 2019, 08:45:29 AM
#8
The economic cycle gets back at certain time interval. The previous financial crisis took place by the year 2007-2008. The next crisis too will happen in the similar way as the previous one. The crisis began with a housing bubble, real estate bubble. As a part of housing bubble, mortgage backed securities increased leading to the increase of the housing prices in US. Lot of investment flow happened towards the US housing market. When the decline of the housing market started, major financial institutions that had invested borrowing faced heavy loss. Such a scenario has begun to strike the economic market at present.
hero member
Activity: 1834
Merit: 759
March 07, 2019, 07:59:15 AM
#7
I feel like it's a matter of when rather than if at this point. It's not soon though, and with all the attention and analyses going into it, it might even be prevented.

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

Alternative to what? It has to be noted that we haven't seen how Bitcoin reacts to an economic crisis on a macro level yet.
legendary
Activity: 1526
Merit: 1179
March 07, 2019, 07:51:57 AM
#6
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.
It's very subjective at the end of the day. I have been reading about a looming crisis for over 5 years now, but it's still not happening, nor do I expect a major crisis to happen any time soon.

I think it's more so that people badly want a crisis to happen because they assume it will pump Bitcoin to the moon and far beyond. I don't think that's necessarily going to happen if I'm completely honest.

Bitcoin is still a speculative asset people and investors allocate only a tiny percentage of their portfolio to. I'm sure that a crisis would affect Bitcoin negatively, and may even affect gold negatively.

I can see a scenario where even that what we expect will do well during bad economical times, will end up being sold off just as easily.
member
Activity: 980
Merit: 62
March 07, 2019, 07:51:19 AM
#5
The world economy moves in a cycle.
We have left a huge huge period of economic growth where interests are getting lower and lower and Bonds and stocks more credible. Because people are too greedy, when they are into this situation they overdo it and eventually, we have an increase in the debt around the world. This is the most crucial reason for the next financial crisis in my opinion.
full member
Activity: 2086
Merit: 193
March 07, 2019, 07:47:44 AM
#4
When you have a non stopable money printing machine like the federal reserve system all those money eventually create some type of bubble(stock,real estate,currency or even crypto).When the bubble bursts(this will happen sooner or later),we have a new crisis.
All financial crisis have one reason.It's called "US Federal Reserve System".
Too harsh for this one, but you have your point. I don’t even understand why financial crisis is happen where they can actually print money all night and pay all the debts. So many reasons for a financial crisis to happen, but for sure cryptocurrency will be a safe place for everyone and because of this expect a higher demand.
hero member
Activity: 3150
Merit: 937
March 07, 2019, 07:40:02 AM
#3
When you have a non stopable money printing machine like the federal reserve system all those money eventually create some type of bubble(stock,real estate,currency or even crypto).When the bubble bursts(this will happen sooner or later),we have a new crisis.
All financial crisis have one reason.It's called "US Federal Reserve System".
full member
Activity: 2128
Merit: 180
March 07, 2019, 07:13:40 AM
#2
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.
Pab
legendary
Activity: 1862
Merit: 1012
March 07, 2019, 07:00:40 AM
#1
 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







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