Financial Crisis Will Come

[SinarG]

The banking lobby claims unreliability and the imminent collapse of crypto currency, but purchases mining equipment while simultaneously knocking down the current exchange rate of digital money.

[The Sceptical Chymist]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well

Umm....wouldn't you want to diversify or hedge the bitcoin?  I'm not sure how wise it is to keep most of your wealth in crypto, even if you're young and have a high income.  It's one of the riskiest investments you can make.  I think it's even riskier than getting into the stock market right now.

I'm not a huge fan of metals, but honestly right now gold or silver might not be a bad way to store some value.  Metals have been beaten down severely since 2011, and I don't know if they're going to fall much further.

As to the OP, there certainly does seem to be a pattern of financial crises coming every decade or so, but that might give you a false sense of being able to see the future.  And you know what?  I'm not sure why more people aren't talking about how these ICOs might be in a bubble, that crypto itself might be ripe for a fall.  Not everything crashes all at once.  In 2008, it started with the real estate market and banks, and the entire stock market followed.  I think the next big event might be crypto followed by the stock market--or at least crypto by itself.  Bitcoin might come away unscathed, but I think shitcoins and new ICOs are going to take a big hit.

[Rastafarian]

The state within which the market is going down has really scared most people to invest and in the absence of investment, investors will be short of finance for some time and may be financially broken.

[BobK71]

As to the OP, there certainly does seem to be a pattern of financial crises coming every decade or so, but that might give you a false sense of being able to see the future.

True, no one can see when and how a financial crash will happen.  What I try to show is that it will happen, at some point, to some fiat-money-based asset.

[tanxpresisit514]

It is well insinuated already that the cryptocurrency market has hits down moments already for the year 2018 and we are merry go rounding the resistance level. I can say that we are currently in the midst of the cryptocurrency financial crisis. We only await the ETF release into the markets to lift it up from the dip.

The financial crisis hit the world today where trade is sluggish, even the trade war carried out by China and the USA has added to the heat of trade competition which has made prices damaged. Cryptocurrency also experienced a significant impact. This can be seen from crypto prices, especially bitcoin which is now even in the price range of 4933.4 USD (in my place)

[Ziskinberg]

It is well insinuated already that the cryptocurrency market has hits down moments already for the year 2018 and we are merry go rounding the resistance level. I can say that we are currently in the midst of the cryptocurrency financial crisis. We only await the ETF release into the markets to lift it up from the dip.

The financial crisis hit the world today where trade is sluggish, even the trade war carried out by China and the USA has added to the heat of trade competition which has made prices damaged. Cryptocurrency also experienced a significant impact. This can be seen from crypto prices, especially bitcoin which is now even in the price range of 4933.4 USD (in my place)

My only concern is crypto, I know the crisis are here but I haven't seen this kind of significant dropped in just few days.
This cryptoworld is quite different and very unpredictable, they said it's volatile, well it is so deal with it.
With the crisis in the world, it will affect our economy and I am thinking that what happen in crypto now is just a big test before institutional money will flow.

[BobK71]

At this point, almost all countries outside the US are suffering from economic pain and/or financial instability, and US financial assets are losing value, and yet the Fed still insists on tightening the money supply.

We are likely experiencing the part of the global-elite strategy where the elites would rather deflate the financial bubble, gently if possible but violently if necessary, than let it continue inflating.

If so, the bubble must be truly frightening.  In the medium to long term, then, non-state assets like gold, silver (physical metals only!) and cryptos should do well.

(P.S. In the interest of full disclosure, there's a chance that this deliberate asset deflation reflects strength rather than weakness, on the part of the elites, and is a preventive measure against dangerous bubbles in the future.  This was basically what happened in 1985 with the Plaza-Louvre accords between the US and Western Europe which deliberately devalued the dollar against European currencies.  I think this chance is small, because the international political environment is more hostile today, and China is also less able to accommodate the US in the same way the Europeans did in the 1980s.  Rather than acting in concert with key politicians, central banks seem to be counter-acting them to protect the system.  This is not a sign of strength.)

[gelinshidong]

The financial crisis will not come. There will be no financial crisis for at least 2018. At present, the global stock market has begun to depreciate sharply, and crude oil has also depreciated sharply. All of this is to release the risk, so I think the global financial crisis will not be this year.

[axxo]

Financial crisis are definitely just around the corner We are experiencing it now and we are hoping that the market would recover we just don’t know when and how.

[Panchum]

Establishment commentators tend to blame every financial crisis on the "bad luck" of a whole host of factors coming together to create a "perfect storm."  What they "forget" is that the incentives of the modern system always drive the elites themselves to destabilize their own system.  Not sometimes.  Not most of the time.  Always.

They will say that the 2007-8 crisis was a combination of the US banking deregulation of the 90s, the US political agenda of moving poor people into home ownership, the poor financial oversight by the George W. Bush administration, the 'global savings glut,' the existence of a shadow banking system in the US, the loose monetary policy in the aftermath of the dot com bust, etc. etc.  All true.  What they forget to mention is that, if it were not these factors, there would be others (stock buybacks anyone?)  If it hadn't happened in 2007-8, it would have been later.

Only looking at the top of the world system, ie Britain in the 19th century and the US later, we can see that:

- There was a financial crisis in Britain roughly every 10 years from 1810 to the 1860s.

- The British Empire bought itself a couple decades by making gold the only money, and not silver.  (Thereby making itself rich at the expense of silver countries -- not unlike what the US might be doing with crypto-currencies today.)  But in 1890 a financial crisis in London made it necessary for the Bank of England to be bailed out by gold from other central banks, the first time in history.

- Soon after world-leader status was moved to the US, in 1929-31, the Great Depression started with a series of financial crises.

- Though the bloodshed of World War II bought a few decades of stability under the US, it was forced to renounce its promise to allow foreign governments to redeem every $35 for an ounce of gold, in 1971.

- The 1970s global crisis of confidence in the dollar forced the US to pay 20% interest on 30-year Treasuries by about 1980.

- The US stock market crashed in 2000.  By 2002, the NASDAQ had lost 78% of its value at the peak.

- The entire world system teetered on the brink of collapse in 2008.

Remember that, we're only talking about the top of the world system, which is the most stable, by design.  (Paper pound sterling in the 19th century and dollars in the 20th were the world's top reserve currencies of their day.  Every effort is made to make other countries fail first -- e.g. the emerging markets crisis of today helps protect the value of US money and debt.)  Further down the ladder, there were many more crises, plus conflicts and wars.

So the long view reveals the truth.  And the truth is that you can't escape the perverse incentives that make individual members of the elites want to profit or prop up the system today by storing up even more trouble for future elites.  These incentives come directly from the system's core nature of theft and deception.

If we listen to mainstream economists, the reason for recurring crises is that, for some reason, people just want to keep losing money.  They keep chasing risky assets whose high values have nothing to do with being propped up by state-bank-elites.  Right.

This system also punishes prudent people who put the most trust in its promises and its official narratives.  But we have a long-term defense: buy gold, silver, and Bitcoin!

Yes financial crisis is really coming,its been here l hope so it will not take too long because many people is affected now in financial crisis which makes people turn into poverty.

[TRADE OR HODL]

Financial crisis are definitely just around the corner We are experiencing it now and we are hoping that the market would recover we just don’t know when and how.

Agree with you, financial crisis will be a huge boost for cryptocurrencies as ripple and ether, last one have a huge advantage coz decentralized exchange based at ERC20 tokens, i recently found out about great one - ethermium.com. Also, ripple is not in the full meaning of the word, this is more like a bank payment service.

[Dilerium90]

I think everyone understands that if a crisis of finances and stocks comes, people will look for new markets to inject money. Apparently, they are now lowering the price of bitcoin in order to purchase well.

[cc80aa]

    Look back last financial crisis in 2008 to 2009 its a unforgetable moment many industries and companies are falling down during that time even the financial institution is paralyze is scared if i remember that time.
    But right now, i hope so that it didnt happened again, since trump implemented taxes for all goods in china its help to stablize the economic situation in the U.S.

[andriarto]

I think everyone understands that if a crisis of finances and stocks comes, people will look for new markets to inject money. Apparently, they are now lowering the price of bitcoin in order to purchase well.

as long as i read, there was bad news that emerged from America and Brussels. and it has an impact on the decrease in the price of btc. but indeed with many loyal bitcoiners it will certainly maintain the existence of BTC

[yvesp110]

I think everyone understands that if a crisis of finances and stocks comes, people will look for new markets to inject money. Apparently, they are now lowering the price of bitcoin in order to purchase well.

For sure because this is the best way to overcome all worries and tensions if you will start buying at the low price so you will be able to sell at high after holding, to all these who have money to invest should invest for now because later on it will not be easy for them to purchase at this much low price, today almost whole market is selling their coins at reasonable price so buy now and then hold for long, crises come but being ready for it will not affect your income.

[redsap]

yeah agree with this, every economic crisis will come after when world economic are going well after all. So to prevent that many people or goverment that care to prevent that crisis making some plan to getting trough that hardline when come, as we know that thing will happen all we can do is just making plan to making it not getting worsed

[djgtr]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....

Truely this kind of investments are good for financial crisis time because things like internet businesses soar very high in price and value. This is because again, people try to run to the internet for succour. On the other hand, if such crisis leads to war, hmm... it becomes a problem because you will need to covert whatever asset to fiat and the banks too will be chaos.

I agree with that, when you are talking about invesment make sure that it would hit the exact goal and will be able to continue the business for a long term. The crisis is all over the world will drop easily but the power of business like btc it would easily to raise and proceed to the next level of the investment. Problems may occur but that woud be a challenge.

[sirminesalot]

I think everyone understands that if a crisis of finances and stocks comes, people will look for new markets to inject money. Apparently, they are now lowering the price of bitcoin in order to purchase well.

as long as i read, there was bad news that emerged from America and Brussels. and it has an impact on the decrease in the price of btc. but indeed with many loyal bitcoiners it will certainly maintain the existence of BTC

yes you are right, as long as there is still an internet network and there are bitcoinners in this world, it will not be easy to destroy bitcoin. indeed, now many people complain and are disappointed with the price of bitcoin. but I'm sure bitcoin will definitely be able to get up and return to normal soon.

[chenhaonan]

At the moment, there seems to be no possibility of a crisis. Global futures, crude oil and securities are now falling. This will not lead to a financial crisis. Unless a black swan event occurs, the financial crisis will not come, and the massive depreciation of assets will be released in a risky manner.

[dongyi17]

There will always be financial crisis, it happen globally but the response to it is more important, what should a country do when they're facing crisis, sometimes when one country is in crisis the other country is affected too. so we need to come an idea how to deal with it.