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9 signs that 2016 looks ominously like 2008 just before the crisis.

 
SELL, SELL, SELL!!!!!!!!
User ID: 60298244
United States
03/18/2016 02:02 PM
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9 signs that 2016 looks ominously like 2008 just before the crisis.
9 signs that 2016 looks ominously like 2008 just before the crisis.

''Back in 2008, much of the calamity was caused by an implosion of “subprime loans” in the housing market. These were frequently no-money down loans at teaser interest rates made to people with poor credit and limited income. Banks made these toxic loans with your money. The best example of this was probably Johnny Moon, a homeless man with no income or employment history who was able to borrow more than $600,000 to speculate in real estate. The total value of these subprime loans was a whopping $1.3 trillion. Not much has changed.

In 2016, instead of loaning money to subprime home buyers, the financial system is now loaning money to bankrupt governments. They’ve even managed to go beyond “no-money down”, and are actually paying governments to borrow money at negative interest rates. Japan is as great example. Even though Japan’s national debt exceeds 200% of GDP, and it takes over 25% of tax revenue just to pay interest on the debt, the Japanese government is able to borrow money for ten years at negative interest. This means that investors are GUARANTEED to lose money. It’s worse than no money down. And it’s total madness.

The bigger issue is that the size of this bubble is an astounding $7 trillion, far bigger than the subprime bubble in 2008. And it grows larger by the day. To expect that this will turn out any differently is foolish. Back in 2008, US government debt was “only” $9.5 trillion. The Federal Reserve’s balance sheet was $850 billion. Interest rates were over 4%. So at least they had some capacity to slash interest rates and fight the crisis using traditional policy tools.

Today, US government debt exceeds $19 trillion, well in excess of 100% of GDP. They have to borrow money just to pay interest, and they have entire pension funds that are on the brink of bankruptcy. The Federal Reserve’s balance sheet has exploded to $4.5 trillion, and interest rates are barely above zero. The government has no means to bail anyone out, including itself. And the Fed has no capacity to print more money and expand its balance sheet without causing a major currency crisis. Simply put, the bubble is just as insane as in 2008, but much bigger. And the financial establishment has no ammunition to fight it.''
Anonymous Coward
User ID: 55500866
Malaysia
03/18/2016 02:07 PM
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Re: 9 signs that 2016 looks ominously like 2008 just before the crisis.
Nah...

They have even greater control now compared to 2008.

It will never crash. Its too fake to crash.

Not joking.
ThePaleOne
traded his horse for a white van

User ID: 331367
Austria
03/18/2016 02:16 PM

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Re: 9 signs that 2016 looks ominously like 2008 just before the crisis.
The governments were the debtors of last resort.

Once they are maxed out there is no one left to take on debt in the amounts needed to keep the system going.

Deflationary depression which already has started in the EU with negative inflation.

Nothing the money counterfeiters can do about it though except for starting an final asset bubble.

As the stock market, housing and oil prize already has worked trough these attempts and has failed ..very likely the next move will be in gold and silver.

Both should go down in an deflationary depression but are also needed as security to not explode the balance sheets.

This may be the last and final bubble before the following centuries of darkness.
Ride it or not.
Life is a 100% deadly sexually transmitted disease.
Life is to short to be a slave, leave the plantation, go: [link to www.goingyourownway.com]
Anonymous Coward (OP)
User ID: 60298244
United States
03/18/2016 02:18 PM
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Re: 9 signs that 2016 looks ominously like 2008 just before the crisis.
If they can keep the Qualitative Easing printing presses going fast enough, but sooner or later with all of this artificial propping up of the unrealistic economy something has to give----> all bubbles burst SOMETIME!!!





GLP