All the ingredients to make a 2008-style recession are there, says American investor Jim Rogers. But according to their particularity, the worst is to be feared for soon.
A monster bear market is approaching
For Dante Disparte of the World Economic Forum, the qualification ” ice Age is best suited for the year 2022. The “ crypto winter being an understatement of what really happened during this period.
This period is really over after bitcoin passed the $30,000 mark ? Not really if we take into account this article by The Daily Hodl.
The crypto media has indeed reported the words of jim rogers stipulating that the situation will get even worse. According to this legendary investor, there will be an aggravated version from 2008a more aggressive bear market.
” I know we are going to have the biggest bear market, the biggest bear market of my life. In 2008 we had a big bear market because of excess debt…look out, since 2008 debt has skyrocketed everywhere. The increase in debt seems gigantic.
It is obvious that the next bear market will be the worst of my life. Indeed, the debt has skyrocketed over the past 14 years. »
The man in question is 80 years old and able to remember a string of crises. To cite only the “double-dip recession” of 1980 which was crystallized by fairly high interest and unemployment rates.
And it is likely to happen again 43 years later.
All markets will be impacted
For Mr. Rogers, we will have to brainstorm to stem the next recession.
” There will be problems in all markets. Real estate markets, stock markets, bond markets, currency markets. You’re not old enough to remember this, but in 1980 and 1979, when we had our last great inflationary spiral, interest rates on short-term government treasury bills, treasury bill interest rates were above 21%.
This is not a typo. More than 21% because the situation was out of control and we had to do something. We did it, it killed inflation, but it wasn’t much fun for a lot of people. So that’s what’s going to happen. »
The FED temporarily interrupted its incessant key rate hikes. But the FOMC does not rule out the possibility of a further rise by the end of the year. Is this the reason that pushed Jerome Powell to turn to digital assets ?
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