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

The comments below are an edited and abridged synopsis of an article by Michael Snyder

Twelve indications that the next major global economic crisis could be just around the corner:

1. The smart money is getting out of stocks at an alarming rate.
2. Moody’s advises that a large wave of junk bond defaults is coming; this is a financial crisis warning.
3. Assets of problem banks more than tripled during the first quarter of 2018; some big banks are now officially in problem territory.
4. US 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.
6. Retail industry debt defaults have hit a record high.
7. We are on pace for the worst year for retail store closings ever.
8. The two largest economies in the world are on the verge of starting an international trade war.
9. The 9th largest economy in the world (Italy) is in the middle of a financial meltdown.
10. Italian banking stocks have crashed hard.
11. Italian 2-year bond yields are the highest since the crisis of 2014.
12. Deutsche Bank just announced that it will be cutting another 7,000 jobs as it ‘seeks to turn the page on years of losses.’ If Deutsche Bank fails in 2018, it will be a Lehman Brothers moment for the entire planet.

Italy is a financial basket case, and Europe can’t handle a complete Italian financial collapse. It could barely handle what happened in Greece, and the Italian economy is many times larger.

Once things start unraveling in Europe, the US will be deeply affected too. The global financial system is more interconnected than ever, and it is now more vulnerable than it was prior to the crisis of 2008.

It won’t matter who is in the White House, who is in Congress or who is running the Fed. When this bubble bursts, there is nothing that anyone can do to stop it.