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Another Financial Crisis Is Coming: Here's What Investors Need To Know


  • It's been 10 years since the worst financial crisis since the Great Depression tanked the US economy and stock market.
  • Today the financial media is full of predictions that another financial crisis is looming, including forecasts that the next collapse will be even worse than 10 years ago.
  • Those doomsday prophecies are predicated on large amounts of consumer, corporate, and government debt.
  • Despite consumer debt being at all-time highs, the next crisis isn't likely to be triggered by excessive household borrowing.
  • And while financial crises happen about every four years on average, most don't trigger recessions, much less economic or market meltdowns.

(Source: imgflip)

We just passed the 10-year anniversary of the Great Financial Crisis, the worst capital market meltdown since the Great Depression. Given that the Great Recession saw the US stock market shed $7.9 trillion in value (global market lost $34.4 trillion) and cost the US economy $22 trillion, it's understandable that Americans and investors today fear a repeat of this disaster.

That's especially true when the financial media, always eager to attract eyeballs to boost ad dollars, frequently tout doomsday predictions like Next crash will be "worse than the Great Depression": experts.

Such hyperbolic and alarmist articles cite super bullish experts like Peter Schiff, CEO and chief global strategist of Euro Pacific Capital, who recently said:

"We won't be able to call it a recession, it's going to be worse than the Great Depression...The US economy is in so much worse shape than it was a decade ago...Our prediction is that central banks will go from being feted for 'saving the world' in 2008 to being vilified for being impotent in the coming deflationary crash." - Peter Schiff

The primary reason people like Schiff are so pessimistic about the next economic downturn is the belief that super high levels of debt (both domestic and international) at all levels, consumer, corporate, government, will result in a financial deluge. One that will make the financial crisis of 2008-2009 seem like a mere sprinkle in comparison. Should such doomsday prophecies prove true, stocks (SPY) (QQQ) (DIA) could be set to fall far more than the 57% decline seen a decade ago. That would be potentially double the 34% average peak decline seen in the 11 bear markets since WWII.

(Source: Moon Capital Management)

Given that this would decimate tens of millions of retirement accounts, just when so many baby boomers are either retiring

This article was written by

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