12 Indications That The Next Major Global Economic Crisis Could Be Just Around The Corner

Authored by Michael Snyder via The Economic Collapse blog,

There have not been so many trouble signs for the global economy in a very long time.  Analysts are sounding the alarm about junk bond defaults, the smart money is getting out of stocks at an astounding rate, mortgage rates are absolutely skyrocketing, and Europe is already facing a full blown financial meltdown. 

Of course expectations that another global economic crisis will happen among the general population are probably at an all-time low right now, but the reality of the matter is that we are probably closer to a new one erupting than at any point since the last one in 2008. 

Since the last financial crisis our long-term debt problems have just continued to grow, and there are many that believe that the next crisis will actually be far worse than what we experienced ten years ago.

So how bad are things at this moment?

The following are 12 indications that the next major global economic crisis could be just around the corner…

#1 The “smart money” is getting out of stocks at a rate that we haven’t seen since just before the financial crisis of 2008.

#2 Moody’s is warning that a “particularly large wave” of junk bond defaults is coming.  And as I have written about so many times before, junk bonds are often an early warning indicator for a major financial crisis.

#3 According to the FDIC, a closely watched category known as “assets of problem banks” more than tripled during the first quarter of 2018.  What that means is that some really big banks are now officially in “problem” territory.

#4 U.S. Treasury bonds are having the worst start to a year since the Great Depression.

#5 Mortgage interest rates just hit a 7 year high, and they have been rising at the fastest pace in nearly 50 years.  This is going to be absolutely crippling for the real estate and housing industries.

#6 Retail industry debt defaults have hit a record high in 2018.

#7 We are on pace for the worst year for retail store closings ever.

#8 The two largest economies on the entire globe are on the verge of starting an international trade war.

#9 The 9th largest economy in the world, Italy, is in the midst of yet another financial meltdown.  In fact, this one appears to be the worst yet, and there are fears that it could spread to other areas of the eurozone.

#10 Italian banking stocks crashed really hard this week.

#11 Italian two year bond yields are the highest that they have been since the crisis of 2014.

#12 German banking giant Deutsche Bank just announced that it will be cutting another 7,000 jobs as it “seeks to turn the page on years of losses”.  Those of you that have followed my work for a long time know that I have written extensively about Deutsche Bank, and it really is amazing that it has survived for this long.  If Deutsche Bank fails in 2018, it will essentially be a “Lehman Brothers moment” for the entire planet.

The mainstream media in the United States almost entirely ignores Europe, but I believe that what is going on over there is the key right now.

Italy is a financial basket case, and Europe isn’t going to be able to handle a complete and total Italian financial collapse.  If you will remember, Europe could barely handle what happened in Greece, and the Italian economy is many times the size of Greece.

The can has been kicked down the road several times before on the Italian crisis, but now we are getting to the point where it simply won’t be able to be kicked down the road any further.

And once things start unraveling over in Europe, we will be deeply affected in the United States as well.  The global financial system is more interconnected than ever before, and at this point we are even more vulnerable than we were just prior to the crisis of 2008.

When this thing breaks loose, it won’t matter who is in the White House, who is in Congress or who is running the Federal Reserve.

When this bubble bursts there is nothing that anyone will be able to do to stop it.

Global central banks have been able to buy a few extra years of time by engaging in unprecedented levels of intervention, but now they are almost out of ammunition and events are beginning to escalate at a very frightening pace.

We shall see if they can pull another rabbit out of a hat in 2018, but I wouldn’t count on it…

Comments

MoreSun Stuck on Zero Sat, 05/26/2018 - 20:02 Permalink

And who will reap the benefits of the next destructive economic collapse- yip, the jew supremacist oligarchs of the world-as always.

Had enough?

If you, your family, & your friends are serious about putting a stop to the jew supremacist stranglehold on the world then make sure you:

VOTE "PATRICK LITTLE" U.S. Senator June 5th in California !!

https://www.youtube.com/watch?v=H6SOxd4B-cs

In reply to by Stuck on Zero

bobsmith5 MoreSun Sun, 05/27/2018 - 02:24 Permalink

MoreSun, I down voted you because you are utterly wrong.  Those people to whom you make such negative reference are not at all "Jews", whatever it is that you mean by that word.  They are Satanist and that is easily proven by historic fact.  They have no bloodline connection to any Semitic blood, nor do they practice any of the "Old Testament" religion.   Some of them do however have traces of some of the cultural aspects of this so called Jewish race/religion.  But they hide behind the word Jew much like communist hide behind the word democracy and democrat. 

Nevertheless, I seriously doubt you have the slightest clue as to what you are talking, and that is a very sad deep shame.  It appears that you are a mindless ignorant racist who can hardly defined most of the words in your limited vocabulary.

In reply to by MoreSun

Phil Free revolla Sat, 05/26/2018 - 19:35 Permalink

Goddamnit. More of your bullshit biblicism institute whoring, 'masked' beneath an URL shortener address .. that allows you to track every single time someone clicks it, etc. etc..

If you're not careful, you're going to end up finally pushing a knowledgeable hacker-type over the edge, with your pushy bullshit, and you'll find your precious b.i. website hacked, bitcoin malware uploaded, files corrupted ... which would at least be a step above where it is now.

In reply to by revolla

skbull44 Quantify Sat, 05/26/2018 - 19:09 Permalink

It matters for a number of reasons. Most importantly, lending standards are much easier; banks and especially shadow banks will give the most uncreditworthy mortgages. When rates creep up on such mortgage holders, it can put people significantly behind the eight ball. This is particularly true when wages are not keeping up with price increases as has been increasingly true.

In reply to by Quantify

Backtable Quantify Sun, 05/27/2018 - 08:22 Permalink

Prcisely. The 2007 crisis was in large part fuled by the subterfuge of mortgage lenduing, wherein borrowers were told they'd have a 2% rate for 5 years and then a 'reset' rate...which indeed happened, and subsequently left many who could afford the 'inroductory' rate at the outset with the inability to make the new, much higher payment when rates 'reset.' And now we have tha same with credit card debt; The "0% for 18 months," sales pitch that will end badly. As rates rise moving forward, many borrowers will find themselves tarpped, unable to meet their credit card payments and unable to get new loans. And look at the spreads! In the last ten years banks have had the lowest cost of carry on loaned money, and yet have charged ridiculous spreads. When the SHTF, you can bet banks will crank existing credit card rates as high as they possibly can, in some states approaching 30%.

In reply to by Quantify

Blue Boat NVTRIC Sat, 05/26/2018 - 23:13 Permalink

Yea, it's been porn doom on here for 10 years now. Hey, if you keep saying it, you'll eventually be right.

Meanwhile, anyone who abided the fear missed one of the most raging stock bull markets ever. And plenty who bought gold at $1700 -1800 an oz and silver at $25 have been underwater ever since.  Bazinga!

Predictions are a sonofabitch to time right.

In reply to by NVTRIC

Quantify Sat, 05/26/2018 - 18:57 Permalink

#12 German banking giant Deutsche Bank just announced that it will be cutting another 7,000 jobs as it “seeks to turn the page on years of losses”.  Those of you that have followed my work for a long time know that I have written extensively about Deutsche Bank, and it really is amazing that it has survived for this long.  If Deutsche Bank fails in 2018, it will essentially be a “Lehman Brothers moment” for the entire planet.

A bank cuts 7k jobs, who cares? No one except 7k people.

ReasonForLife Sat, 05/26/2018 - 18:57 Permalink

I've been hearing about the collapse for the past 10+ years, the collapse isn't a single event like an explosion, it's a gradual and exponential decline in the quality of life of individual Americans, similar to how infrastructure rots over time when not maintained.  What is the paradigm shifting moment?   A world war, a devaluation of the dollar, a constitutional crisis, stock market freefall, etc.

But don't forget, we have many new and emerging technologies going parallel to the dying legacy system.  One system collapses, and a new one takes it's place.  The key is to be mentally and financial ready for the shift into the new system, that's all.  It will then be like looking at yourself in one dark mirror, and then turning to seeing yourself in a new and brighter one.