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The start of a financial crisis...

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Old 15th Sep 2018, 18:49
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The start of a financial crisis...

There is a sky news article published today saying we are already at the start of a financial crisis and that it will be bigger than 2008....

I cannot post URLs yet but... Should we be worried? Is it too early to say?
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Old 15th Sep 2018, 19:00
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Seemed quite a reasonable piece based on the amount of debt the developed world has. Throw some steadily increasing interest rates into the mix and it goes bang again.
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Old 15th Sep 2018, 19:06
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Ten years on from the last meltdown and the central bankers are still propping up the banking system with record low interest rates. Maybe it’s time to let the commercial banks sink or swim on their own for a change.
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Old 15th Sep 2018, 19:32
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Unhappy

Originally Posted by gijoe View Post
Seemed quite a reasonable piece based on the amount of debt the developed world has. Throw some steadily increasing interest rates into the mix and it goes bang again.
The "developed world" is in far better shape than the "developing world". Venezuela, for example ,has just increased their min wage by 3000 % and inflation is expected to hit 1,000,000 % this year.
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Old 15th Sep 2018, 19:48
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Originally Posted by J.O. View Post
Ten years on from the last meltdown and the central bankers are still propping up the banking system with record low interest rates. Maybe itís time to let the commercial banks sink or swim on their own for a change.
As a citizen of an advanced economy, you really really really really don't want your banks to go bust. You'd have a barbaric revolution on your hands within days.

On the most recent occassions when this kind of thing has happened (e.g. in Canada, back in the days when it still depended on being economically anchored to Britain; one sunk ship was all it took for the economy to collapse entirely), it caused enormous set backs. No one can buy anything because money doesn't mean anything anymore. Those who can farm survive, everyone else is in deep trouble.

Why do you think the major western governments reacted so quickly when Lehman Brothers collapsed? Gordon Brown spent £150billion in a single afternoon all by himself without asking anyone, just to avoid a cascading banking collapse in the UK. It worked, but we're still paying for it. If you want a deep analysis of what actually went wrong, this is the wrong website, save to say that it was caused by too many people kidding themselves. That's still happening.

So far as aviation is concerned, it's like everything else. Economic downturns are bad news.
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Old 15th Sep 2018, 20:38
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Originally Posted by tsgas View Post
The "developed world" is in far better shape than the "developing world". Venezuela, for example ,has just increased their min wage by 3000 % and inflation is expected to hit 1,000,000 % this year.
What makes you think Venezuela is a "developing world"?


Originally Posted by msbbarratt View Post
As a citizen of an advanced economy, you really really really really don't want your banks to go bust. You'd have a barbaric revolution on your hands within days.
Not an expert on the subject but I remember reading Iceland did not bail out its banks. The question now is whether Iceland is in a better financial situation than other countries that bailed out the banks such as USA and UK.
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Old 16th Sep 2018, 01:30
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[QUOTE=Nurse2Pilot;10250061]What makes you think Venezuela is a "developing world"?



You must be joking ?
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Old 16th Sep 2018, 10:43
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[QUOTE=tsgas;10250156]
Originally Posted by Nurse2Pilot View Post
What makes you think Venezuela is a "developing world"?



You must be joking ?

i think he he meant that it is lower than developing.

Nigeria, Vietnam.... those are developing countries, Venezuela is a failed country.
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Old 16th Sep 2018, 22:22
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Originally Posted by tsgas View Post
You must be joking ?
That's not an answer to the question. What makes you think, by your own example, that a nation that has a mind-boggling inflation rate of 1,000,000% is "developing"?
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