Reason of Next Financial Crisis

[bitbunnny]

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.

[Crypdon]

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

[andika2018]

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

[mapanlah]

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.

[vv181]

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.

[LUCKMCFLY]

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.

[gowobonyok]

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.

[South Park]

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.

[Pab]

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."

[Febo]

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

Dont bet on to many years.

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.

[cizatext]

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.

[South Park]

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.

[hxtop]

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.

[Febo]

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/

[Crypdon]

Bitcoin loans could save us from the next financial crisis as it doesn't have any impact on the stats of the economy. They could also be used to secure fiat loans by some loan sharks

[Febo]

Bitcoin loans could save us from the next financial crisis as it doesn't have any impact on the stats of the economy. They could also be used to secure fiat loans by some loan sharks

Bitcoin will not save us. We will have to make a switch in our brain. Right now half world works on debt.  You go buy car and they dont want to sell to you fro cash but want you to take debt. The society is demanding that from people. Kids are getting taught this is normal. That is the biggest problem we have. People old 70 years and more have little problems with that. They will also way take debt as last option. Young work on debt. They get enslaved from young age and dot even know how freedom feels like.

[Pab]

Last time i follow all that Brexit drama or last time kind of parody
What politicians are able to do is above imagination
It looks like politicians and greedy bankers will be always source of crisis
Now GB is on the edge and Brexit can affect not only GB but all Europe citizens
Other one also caused by politicians are tariffs war
Prices of various goods can jump a lot
Even now Boeing lost 30 bln$ contract with China
China used last Boeing crashes like a excuse to ban Boeing and buy Airbus
But tariffs wars will affect all world not only USA
Both Brexit danger and tariffs wars are caused by  politicians and his private ambitions

[TIDOVEE]

Is the world owing too? And if the world is owing,who then are we owning. We know about nations owing. And presently its like many nations are having financial crisis but I don't know the extent at which it has affected the world economy. Solution to crises is what we should work on.

[South Park]

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/

That will increase the velocity of bitcoin as money and that is not bad at all if we take into account that the greatest use of bitcoin at the moment is as a speculative investment in which most people are holding their coins, so this is not going to necessarily going to make the price of bitcoin to go down as long as the demand goes up which is something possible during an economic crisis but I will admit that there is the possibility that the price will go down but I just do not find it that likely.

[fauzan Ichsan]

Is the world owing too? And if the world is owing,who then are we owning. We know about nations owing. And presently its like many nations are having financial crisis but I don't know the extent at which it has affected the world economy. Solution to crises is what we should work on.

I think debt is an economic cycle, where it is like a chain of cycles. to overcome this, I think at this time the country needs to ratify cryptocurrency, moreover there are still few countries that legalize it, so that the people will prosper later