4 Reasons A Major Recession is coming that will CRASH crypto, stocks, and the global economy
We are heading straight towards one of our worst recessions.
Michael Burry, who predicted the 2008 housing bubble and profited from it, believes this one will be worse than the financial crisis
1. Quantitative Easing — inflation
Quantitative easing in Europe and the United States over the last decade has been indulgent. When the pandemic began, the money printer went overboard.
All-in money printing totaled $13 trillion: $5.2 for COVID + $4.5 for quantitative easing + $3 for infrastructure. Mountains of money cause inflation. Inflation in Ireland alone is its highest in 22 years.
To make matters worse, we have war-making such an already expensive product, worse. Diesel is over 40% higher than a year ago while petrol is 24% higher.
3. Our last recession was in 2008
The markets are cyclical & we are overdue for a recession.
4. We were in a major bubble for most assets for years
Throughout the pandemic, when major lockdowns were in place and many were unable to work, the s & p & crypto soared to all-time highs. Tell-tale signs of bubbles — like the GameStop saga and meme coins soaring — all occurred when not much was happening.
Due to our response to the pandemic, governments won’t be able to do what is necessary — lower interest rates and print money — they’ve already done it.
They’ve used that option up. This recession will get very dirty.
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