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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
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
(response)
The cause of the next financial crisis is a default in the credit market, look at the leverage rates in the corporate bond market, its utterly toxic, if you look at the car loans also highly toxic. The collateralization is also weaker on cars given the flooded market and substitution ease between newer and older models etc, compared to say houses when we had the 2007 crash.
China is a key risk factor with its hyperinflated asset prices based on their culture of property ownership (there are stories of men competing for women by talking about the number of properties they own, given the imbalance of men to women from the one-child policy, this sometimes requires 3 or 4 houses anecdotally)
On top of that read Thomas Picketty's analysis of the failures of the Euro given the ECB sets policy rate yet does not control individual governments debt issuance or government budgets, then the surplus recycing of the germans into higher return markets in the eurozone at low rates pumping leverage in these nations before rising rates, taking the default, refusing to bail them out and then taking ownership of their collateral.
Wait until the Italians spanish and greeks leave the EU to prevent this frankly fiendish economic-empirialism of the hun.
Also on the list:
-American-Chinese war possibility (venezuelan intervention by US leads to Chinese dumping US treasuries as retaliation and dumping the petrodollar system buying oil in Renminbi over dollars to shaft the US economy, American false flag attack on Ships testing the south china sea expanded naval territory and their built islands, US then engage in a naval and aerial war with the chinese, large naval losses an aerial losses on both sides with the chinese not doing too well, russians intervene after a week, threaten nuclear war, trade freezes and commercial shipping is targeted. world is fucked.)
-Russian energy monopoly in europe manipulating prices and basically fucking the germans with that nordstream pipeline, germany shafted.
-Failed Commerzbank Deutsche bank merger leads to a collapsed german banking system, as we all know, the eurozone is just a set of german satilite states, if germany flops theyre all fucked, euro collapses, its just fucked.
