Reason of Next Financial Crisis

[tadpole_bitfrog]

I think this debt cannot be paid immediately. These are just rumors and regulators will not be able to prosecute and punish immediately. because it will greatly affect the US economy.
And this is considered the rule of moving cash flow and it has been formed for a long time. there will be no big changes happening.

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[andriarto]

I think this debt cannot be paid immediately. These are just rumors and regulators will not be able to prosecute and punish immediately. because it will greatly affect the US economy.
And this is considered the rule of moving cash flow and it has been formed for a long time. there will be no big changes happening.

debt for something productive, certainly requires time for recovery. and it is not possible to be paid immediately, like investment, which requires time to make a profit. but with the right calculations and assumptions of course the debt will be repaid in accordance with the specified time

[dothebeats]

The money has to go somewhere, always, and that same money has to be paid by someone too, always. Though the course of every economic crashes and downturns hasn't been mapped fully yet, we all know that it will always occur from time to time. Analysts and financial experts had been predicting that by 2020, another global economic catastrophe is to happen, and to what cause, we don't know. It's like people are just rehashing the same events and scenarios prior to the subprime mortgage crisis of 2007-2008, though somewhat focused on a different asset and aspect of the economy.

[candymanofswitzerland]

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

(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.

[magneto]

It's certainly possible that irresponsible lending could trigger another financial crisis. It seems like that credit in a lot of countries have been trending towards the easier end of the credit availability spectrum since the GFC, which could have influenced rising stock and real estate prices in certain countries again.

The thing with fiat is that, since it is so entangled with debt, if one thing goes wrong the whole chain of things could spiral out of control.

We can't say for certain what type of financial crisis the next one will be or who or what causes it, but for certain it's only a matter of time before it happens. It could be inflationary, recessionary, market failure... Just be prepared by hedging against the traditional economy. Holding an independent and decentralised crypto like bitcoin is a wise decision imo.

[leonair]

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".

I don't think so, it seems that you're mad with the US but can't blame you either. bitcoin is a digital currency and limited not like Fiats.

There are a lot of thoughts that Bitcoin will boom if there would be the next global financial crisis and I'm so excited that it will happen sooner as it's inevitable.

[Burogh]

It's certainly possible that irresponsible lending could trigger another financial crisis. It seems like that credit in a lot of countries have been trending towards the easier end of the credit availability spectrum since the GFC, which could have influenced rising stock and real estate prices in certain countries again.

The thing with fiat is that, since it is so entangled with debt, if one thing goes wrong the whole chain of things could spiral out of control.

We can't say for certain what type of financial crisis the next one will be or who or what causes it, but for certain it's only a matter of time before it happens. It could be inflationary, recessionary, market failure... Just be prepared by hedging against the traditional economy. Holding an independent and decentralised crypto like bitcoin is a wise decision imo.

After 2008 crisis, we know central banks like BoE, ECB and The Fed always printing more money and they called as QE but we know the truth its just not touching real bussiness. Economic crisis is just a matter of time

[danherbias07]

I remember when the government is trying to push people to spend their money.
Looks like the circulating fiat is getting lower and that is why they need people to spend. Too much savings makes this happen.
Now, they want to print out another batch of money which makes a bigger problem.

They really need a new kind of currency that will circulate for that not to happen again. What could it be that they will use?
Is it really bitcoin or just another centralized crypto currency. Looks like XRP is ready for that.

[Lizzylove1]

Our economic managers are unholy professionals who are good at nothing but deliberately creating poverty and enslaving many generations unborn in the name of regulation. The rich keeps getting richer, while the middle class is at the verge of been displaced. If they really mean business, while giving loans to companies with low Credit wordiness? Is this not daylight robbery? Same guys keep enriching themselves in other to maintain the old empire of the nobles. I hope people switch to Bitcoin soon.

[Reid]

Looks like holes are found again.
Who will bet against it? I guess that is the question out there. Remember that movie where a group of people have found that hole and tried to warn everybody but nobody believes them.
They bet all that they can and won it but in exchange for a sorrowful country.

I guess nobody will believe this too since they still think they are all strong countries.
Better stay with crypto. The bubble is not popping for so many years.

[buwaytress]

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.

[wuvdoll]

I think the clear choice is the shareholder trouble all companies have. Shareholders want to make more and more money every single year, all companies with shares open to public is forced to bring in more and more profits every single quarter.

It means a company that is not making profit will be getting their stocks and shares sold so the investors go buy the company that made profit instead, which means the company who was already having trouble profiting now also doesn't worth too much as well because of sudden sales on their shares.

Basically, you have to keep on making profits forever if you want to and that is just not sustainable. Things that are financially not sustainable is the reason why we have economic crisis and eventually this shareholder drama will create a big chaos like the 2008 one as well.

[daarul50]

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.

[Theb]

A larger focus here is how and why are these banks letting it happen if there are certain standards set in place for loans? Are they intentionally letting this happen or is this just a mismanagement happening at the lower end? If these lenders are found purposely cornering these debt companies to default then we might see a really big turn of events here concerning the economy. The way I see it is if the greater portion of these troubled companies are unable to pay then we might see a lot of people losing their jobs, stock prices falling, and of course the US dollar losing its value, it will just simply be a chain reaction that will trigger another recession.

[richminded]

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.

[Ranly123]

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.

[South Park]

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.

[mirawantirinjana]

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.

[BitcoinTurk]

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.

[Naida_BR]

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.