It has been reported that we have a new economic warning out. Take a look at the latest reports about this below.
New global economic warning is out
According to veteran American investor Jim Rogers, the upcoming bear market is expected to be the largest one in his lifetime of 80 years. In a recent interview with Real Vision Finance, Rogers has compared the current economic situation to that of the Great Financial Crisis of 2008, but he believes that the circumstances now are much worse.
Rogers, who is closely associated with prolific investor George Soros and is a co-founder of Soros Fund Management, has expressed concern about the mounting debt within the system and its potential to trigger a severe downturn in risk assets.
“I know we’re going to have the largest bear market, the biggest bear market in my lifetime. In 2008 we had a big bear market because of too much debt…look out the window, since 2008 the debt everywhere has skyrocketed. Gigantic increases in debt.
So, I think it’s a simple statement that the next bear market will be the worst in my lifetime. Because the debt has gone up by such staggering amounts in the past 14 years.”
As per Rogers, the financial markets are experiencing a situation similar to the great inflationary crisis of 1980, which required high-interest rates and yields on treasuries to curb inflation.
This will result in trouble across all markets – properties, stocks, bonds, and currencies. In 1979 and 1980, during the last major inflationary spiral, the interest rates on short-term government treasury bills had gone beyond 21%. However, if you are not old enough, you might not remember it.
“That’s not a typo. Over 21%, because the situation was out of control and we had to do something. We did, it killed inflation, but it wasn’t a lot of fun for a lot of people. So that’s what’s going to happen.”
