Reasons the next financial crisis will be worse and how it can be saved

MARKETS ARE MORE VOLATILE NOW AFTER BREXIT AND TRUMP’S ELECTION:

What will happen to you when your savings and retirement account is completely worthless? Gold is the only asset that cannot be created. It has to be extracted and extracted from the earth through a natural process. Against all odds, the United States has chosen Donald Trump as its new president and no one can predict what the next four years will be like. As commander-in-chief, Trump now has the power to declare nuclear war and no one can legally stop him. Britain has left the EU and other European countries plan to follow suit. No matter where you are in the western world, uncertainty is in the air like never before.

THE US GOVERNMENT HAS A LOOK ON RETIREMENT ACCOUNTS:

In 2010, Portugal seized retirement account assets to help plug the holes with government deficits and debt. Ireland and France did the same in 2011, as did Poland in 2013. The US government has been watching. Since 2011, the Treasury has taken money from government workers’ pension funds on four separate occasions to cover deficits in federal spending. Billionaire investor legend Jim Rogers believes private accounts will be the next government raid.

TOP 5 US BANKS NOW BIGGER THAN BEFORE THE CRISIS:

He learned about the five largest banks in the US and their systemic importance when the developing financial crisis threatened to bring them down. Lawmakers and regulators promised they would address this issue once the crisis was contained. More than five years after the crisis ended, the five largest banks are even bigger and more critical to the system than before the crisis began. The government made the problem worse when it forced some of the so-called “too big to fail” banks to absorb the bankrupt. Any of these banking giants that failed now would be absolutely catastrophic.

THE DANGER FROM DERIVATIVES THREATENS BANKS MORE NOW THAN 2007/2008:

The derivatives that crashed the banks in 2008 did not disappear as the regulators promised. Today, the five largest US banks’ derivatives exposure is 45% higher than before the 2008 economic crash. The derivatives bubble is now over $ 273 trillion from $ 187 trillion in 2008.

US INTEREST IS ALREADY AT ABNORMAL DOWNS, SO THE FED HAS LITTLE ROOM TO REDUCE RATES:

Even after raising interest rates once last year, the federal funds rate is still in the ¼ to ½ percent range. Consider that before the crisis erupted in August 2007, federal funds interest rates stood at 5.25%! In the next crisis, the Fed will have less than half a percentage point in total and may cut rates to stimulate the economy.

AMERICAN BANKS ARE NOT THE SAFEST PLACE FOR YOUR MONEY

Global Finance magazine publishes an annual list of the 50 safest global banks. Only 5 of them are based in the US The first rank a US bank has is only 39.

THE FED BALANCE SHEET STILL EXPANDS SINCE THE FINANCIAL CRISIS OF 2008:

The Fed still has nearly $ 1.8 trillion in mortgage-backed securities on its balance sheet from the 2008 financial crisis. This is more than double the less than $ 1 trillion it had before the crisis began. When mortgage-backed securities fail again, the Federal Reserve has far less maneuverability to absorb bad assets than before.

THE FDIC ADMITS THAT IT HAS NO RESERVATIONS TO COVER ANOTHER BANKING CRISIS:

The latest annual report from the FDIC shows that they will not have sufficient reserves to adequately insure the nation’s bank deposits for at least another five years. This astonishing revelation admits that they can only cover 1.01% of US bank deposits, or $ 1 out of every $ 100 of your bank account deposits.

LONG-TERM UNEMPLOYMENT IS STILL HIGHER THAN BEFORE THE GREAT RECESSION:

Unemployment was 4.4% in early 2007 before the last crisis started. While the unemployment rate eventually reached the 4.7% levels seen when the financial crisis began to devastate the US economy, long-term unemployment remains high and the job participation rate significantly lower more than five years after that ended the previous crisis. Unemployment could be much higher in the wake of the looming crisis.

AMERICAN COMPANIES FAILING AT A RECORD RATE:

In early 2016, Gallup CEO Jim Clifton announced that American business failures are now greater than startup startups for the first time in more than three decades. The shortage of small and medium-sized businesses has huge implications for an economy long driven by free enterprise. Larger companies are not immune from trouble, either. Even the heavyweights of the US economy like Microsoft (cutting 18,000 jobs) and McDonald’s (closing 700 stores during the year) are suffering from this sad trend.