The problems from the financial crisis of 2008 were not really fixed. Indeed, it could easily be argued that a whole host of other problems were created.
It looks likely that another financial crisis is going to occur and this may be sooner rather than later. Truth be told, the economy has been in the hospital ever since 2008 and another heart attack is in the offing. What is more, this crisis will more than likely be of vastly greater proportions than the previous one. And this time, it could kill the financial system outright.
I should point out that there is a difference between the “Financial System” (which is comprised of a collections of various financial systems) and the underlying economy, but perhaps this is a topic for another video.
The “recovery” since the crash of 2008 has been something of a fabrication (one might even say it’s an outright lie) made up by the powers that be (the governments, the central banks, the ECB, IMF, the FED, the main stream media etc) in order to control the narrative – perception management is the name of the game.
Quantative Easing :- QE is one of the two key supports given to the financial system while it has been in the ICU. Basically, returning to our analogy, the financial system is being given blood transfusions to keep it alive. We must bear also in mind that QE is just money printing and we know the perils of that. I refer you to my previous video on Inflation.
GDP : - At best growth could be described as weak. How can growth in GDP of around 2% be regarded as anything but weak? GDP is put forward as an indicator of economic activity in a society. Just as with a thermometer used on a sick individual, there is a narrow range where the person is deemed well. When it goes outside of that range there is cause for concern. It’s been at the low end of the scale for an awfully long time.
The Stock market : - Yes stock markets are high… but stock markets are just a single part of the financial system. They are not the be all and end all of an economy - despite what the main stream media (MSM) would have us believe. So don’t be fooled by their propaganda.
It’s worth pointing out that low interest rates have provided cheap money which has caused asset prices to rise. Bubbles have been blown up all over the place.
Another point to make is that in recent times CEOs of companies have instigated policies of buying back shares in their own companies which has in turn inflated the prices of their company stocks. This policy artificially boosts stock price.
In the US, there is the “Plunge Protection Team” which is an agency of the Treasury. They step in when there is a dramatic downturn in the stock market. This certainly doesn’t seem to something one might associate with free market Capitalism, does it? One could even argue that capitalism has given way to a state-run centrally managed market. And you could call that communism.
And, as Gregory Mannerino occasionally points out, the FED has a trading des
