The Looming Bank Collapse

[cosmofly]

Not only Looming Bank, but when the pandemic is still under control, it is likely that more banks will die. because when the disease broke out for the second time, businesses were once again severely hurt and that would make them unable to pay their debts, after which the bank could not recover the money and As a result, many banks will collapse. I am really worried about the current US situation, things are very chaotic now. there is a high probability that the US will have an economic crisis this year.

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[coinfinger]

People should try as much as they can to avoid debts. This is one thing I never want to get myself, if you’re stuck on debts, trust me, it will be difficult for you to achieve something. With the debts hanged on your neck, you will just keep on stumbling, especially at this time that things keeps getting difficult. We should teach our children to see debt as an enemy, because if they should grow up to see banks as their savior, they will end up in something else.

That’s why I just make sure that I avoid it. When I get money I’m always calculative and plan on how to spend and invest them. I don’t just keep my money in banks, I try as much as possible to invest them in several places as possible.

[Naida_BR]

Not only Looming Bank, but when the pandemic is still under control, it is likely that more banks will die. because when the disease broke out for the second time, businesses were once again severely hurt and that would make them unable to pay their debts, after which the bank could not recover the money and As a result, many banks will collapse. I am really worried about the current US situation, things are very chaotic now. there is a high probability that the US will have an economic crisis this year.

It is inevitable to see a bank collapse or a huge company going bankrupt during 2021 as a result of coronavirus.
If something like that come from the US then we are going to live another huge economic crisis that will affect our lives the same as it happened in 2009. Hopefully, we are not going to see that as many families will not endure this crisis.

[exstasie]

I think if we got through 2008 alive and intact we can get through this current crisis.  It's not even a crisis yet, IMO.

This sentiment brings two things to mind for me.

First, the 2007-2008 crisis took a year to unfold. We're only ~3 months in. It can take months and months for defaults to pile up into larger solvency and liquidity problems. We may not even be at the "Bear Stearns bailout" point in the crisis yet.

Second, why do you think 2008 is the worst that can happen? How about 1931? Or something we've never seen before?

I'm not saying the worst outcomes are guaranteed by any means, I'm just trying to keep an open mind about how things could unfold. Structurally, things look a lot scarier to me than 2008, especially with the possibility of further lockdowns hanging over us like a dark cloud. Everyone seems to be assuming the worst is behind us and the trajectory is unquestionably up from here and to be honest, that scares the shit out of me.

[mu_enrico]

People should try as much as they can to avoid debts.

Debt is okay as long as it is used for productive activities/production, and not for consumption.
The problem nowadays, people are using debt for consumption, thus without higher income, their financial position will become weaker.

In some literature, people who are (strictly) avoid debt is considered financially illiterate LoL.

[abhiseshakana]

I do think the reason we are in a pinch right now is : We are using the Traditional methods without any upgradation to deal with current issues.

What we need to do is to upgrade the way the things are handled , Banking system is far too centralized and far too corrupted to not collapse in an impending disaster.

Corona Virus should be eye opener for them, where they do need to understand that they have to add , the updates , like Blockchain. Integrate them with the current system. Find new alternatives.

This depends on the people who have the money whether they will hold cash and entrust it to be deposited in a bank account or the owner of the money simultaneously and massively save their cash in a safety deposit box or kept at home or in other forms (gold or bitcoin)

Coronavirus provides an opportunity for individuals to test the resilience of banks in the face of crisis. And we as individuals are given the opportunity to save our money before the bank actually collapses due to fractional reserve.

People should try as much as they can to avoid debts. This is one thing I never want to get myself, if you’re stuck on debts, trust me, it will be difficult for you to achieve something. With the debts hanged on your neck, you will just keep on stumbling, especially at this time that things keeps getting difficult. We should teach our children to see debt as an enemy, because if they should grow up to see banks as their savior, they will end up in something else.

That’s why I just make sure that I avoid it. When I get money I’m always calculative and plan on how to spend and invest them. I don’t just keep my money in banks, I try as much as possible to invest them in several places as possible.

People should try as much as they can to avoid debts. This is one thing I never want to get myself, if you're stuck on debts, trust me, it will be difficult for you to achieve something. With the debts hanged on your neck, you will just keep on stumbling, especially at this time that things keep getting difficult. We should teach our children to see debt as an enemy because if they should grow up to see banks as their savior, they will end up in something else.

Debt is indeed something to be avoided, especially debt related to banks that have an interest. But what needs to be taught to children is not about the prohibition of debt because debt can be used as an instrument of assistance in human relations so that one person can help others in urgent conditions.

What we must teach our children is character education in order to avoid conditions that require a person to be in debt. As life is simple and not too ambitious so that it can eliminate the thought of debt as a solution to financial problems.

[Findingnemo]

We have technology for everything. And research is constant. In 10 years time we will know so much more that we know right now. Probably double or triple. I am totally not worried with that. All that will be needed is society will to do it.  And that will happen when some huge ecological catastrophes will happen in Europe or North america.

We have advanced technology but not for everything, the best example is covid 19, if human is capable of finding cure for everything then why the whole world is afraid of that tiny virus and locked down to save themselves from infection.But there is already a technology for this global warming which is move to another planet but that is only for billionaires not for everyone.

[fullhdpixel]

This is something a lot of people already knows, but they are being reluctant of taking any actions about it. 2008 was already enough to tell people that such a thing exists, and it can as well repeat itself.

So, it’s up to them to do what they are supposed to do to keep themselves in a good position when it arrives. Since you know that, you should be focusing more on how you can be protecting your wealth, so that you wouldn’t be in a bad condition. Try to invest more in good assets that will help you grow your wealth, and Bitcoin is one of them for sure. There’s no way you will be able to tell the whole world about it. Do the little you can, and that’s it.

[StonksStonksStonks]

related: https://bitcointalk.org/index.php?topic=5257749.0

[Natalim]

This is something a lot of people already knows, but they are being reluctant of taking any actions about it. 2008 was already enough to tell people that such a thing exists, and it can as well repeat itself.

Because we have too much confident with our government and we are not seeing the potential negative outcome in the future.

So, it’s up to them to do what they are supposed to do to keep themselves in a good position when it arrives. Since you know that, you should be focusing more on how you can be protecting your wealth, so that you wouldn’t be in a bad condition. Try to invest more in good assets that will help you grow your wealth, and Bitcoin is one of them for sure. There’s no way you will be able to tell the whole world about it. Do the little you can, and that’s it.

The thing is, it's the government who are controlling us, though their job is to be transparent but they won't show that to us, instead, they'll brainwash us to convince that the economy is still doing better and it would not collapse anytime, government creates law, so we believe in them but they can't keep this secret forever as time will come it will explode and everyone of us will have to pay the price. Good for those who have an alternative of investment, yes, bitcoin is quite good, it has proven in the current situation, so hopefully more people will realize that and prepare for this possible doom.

[abhiseshakana]

This is something a lot of people already knows, but they are being reluctant of taking any actions about it. 2008 was already enough to tell people that such a thing exists, and it can as well repeat itself.

What do you expect, humans will do after the 2008 subprime mortgage case? Humans often do not have many choices, even the government which should protect the interests of the people is not supporting the people but is a protector of the system. The printing system of money without gold collateral causes a currency as strong as the dollar even if it is weak, besides that the amount of money printed is not balanced with the number of available projects. So that it causes bubbles and economic illusions.

So, it’s up to them to do what they are supposed to do to keep themselves in a good position when it arrives. Since you know that, you should be focusing more on how you can be protecting your wealth, so that you wouldn’t be in a bad condition. Try to invest more in good assets that will help you grow your wealth, and Bitcoin is one of them for sure. There’s no way you will be able to tell the whole world about it. Do the little you can, and that’s it.

Many people still think that subprime mortgages are something that cannot be avoided and cannot be predicted. Whereas subprime mortgages are karma from human moral fragility in managing finances. Start
very loose lending by financial institutions such as banks, investment companies, insurance by offering capital provision in the form of housing loans whose collateral is the property itself (prime-mortgage). This type of credit is usually only given to customers who are able to repay and repay their loans because they have adequate income, have permanent jobs, have positions, and have a good track record in credit payments. But due to the greed of brokers and marketing to get bonuses or fees, then came financial innovations by creating sub-prime-mortgage loans that were given to those who did not have the capacity to pay, for example, laborers, temporary workers, and people who live from mediocre. This credit is known as "NINJA LOAN" or No Income, No Job, and No Asset with a very large risk of default.

The irony is that financial executives are willing to bet on this high risk by trading the sub-prime-mortgage debt on the stock market. The debt securities are secured so that risk can be transferred to other parties such as insurance companies, which in reality the guarantor itself does not have sufficient capital reserves, especially in the form of assets to guarantee it. Like gambling, many parties try to profit from the losses of others by creating financial products such as Credit Default Swaps (CDS). That is an economic activity that is not creating additional wealth, but rather the transfer of wealth from the losers to the winners in the race for the probability of redemption of debt with interest. Brokers on the stock exchange buy shares/debt securities at certain prices hoping for profits from uncertain debt interest in the future. Because the risk of default has been transferred, there is aggression in lending easily so that the volume of debt exceeds the amount or value of assets from the initial debt securities.

Bank interest, bank, and speculative actions are the root of the economic problem.

[Mame89]

This is something a lot of people already knows, but they are being reluctant of taking any actions about it. 2008 was already enough to tell people that such a thing exists, and it can as well repeat itself.

Because we have too much confident with our government and we are not seeing the potential negative outcome in the future.

So, it’s up to them to do what they are supposed to do to keep themselves in a good position when it arrives. Since you know that, you should be focusing more on how you can be protecting your wealth, so that you wouldn’t be in a bad condition. Try to invest more in good assets that will help you grow your wealth, and Bitcoin is one of them for sure. There’s no way you will be able to tell the whole world about it. Do the little you can, and that’s it.

The thing is, it's the government who are controlling us, though their job is to be transparent but they won't show that to us, instead, they'll brainwash us to convince that the economy is still doing better and it would not collapse anytime, government creates law, so we believe in them but they can't keep this secret forever as time will come it will explode and everyone of us will have to pay the price. Good for those who have an alternative of investment, yes, bitcoin is quite good, it has proven in the current situation, so hopefully more people will realize that and prepare for this possible doom.

sometimes I think, in a situation like this the government takes an action just to look for its own benefits that are not visible to the public. besides the risk of fraud, other risks that can occur as a result of the government are not careful in widening the budget deficit, indefinitely. pay attention to the principle of periodicity and debt financing in large amounts. in turn has the potential to increase the risk of the fiscal cycle and could disrupt the sovereignty of the country, I worry if that happens ....?