Black Someday Soon

The global banking crisis of 2007-2008 that wiped trillions of pounds off the world’s stock markets and caused major heartache for millions of people is going to happen again. Everyone knows this but no-one really knows when it’ll be or how bad it’ll be.

The ‘bankers’ (capital W), whose greed caused the last one are about to start gambling with our money again. Thanks to, yeh you guessed it, Donald Trump.

The Dodd-Frank reforms that were put in place in the US to stop this happening again are being swept away to allow banks to once again do what the hell they want. Deregulation has begun. You might remember Thatcher started it (think Yuppies in the city of London) and then Reagan followed suit. It got worse under Bush.

The UK poodle; May’s government, are worried. How do I know? Well, they’ve recently announced that the prize fund for premium bonds will be reduced. Don’t dismiss this, it’s important. The UK Treasury has £58 billion of our money invested in it via premium bonds. Just think what would happen if everyone cashed in their bonds at the same time. It would be a nightmare for the government. This figure is over half what they put into the NHS each year.

Anyway, I think it’s safe to say that the next crash is on it’s way. When? No idea, but it could be as early as this year. We’re well overdue one anyway. Why do I say this? Well, interest rates are as low as they can go, world governments can’t keep printing more money (QE) and China has already seen it coming and has battened down the hatches by slowing it’s own growth. This time the banks will have nowhere to go though.

OK, what will it mean for us mere mortals? Again, hard to say other than it will be us that pays for it. Saving rates will disappear. ISAs invest in stock markets so they could go negative. House prices will fall meaning negative equity for those buying a property now. Pension pots will suffer as these are also invested in shares. Inflation will cause food and petrol to rise and cash to be worth less. Oh yeh and loads will lose their jobs. And people worried Brexit was bad. Happy days.

Oops, almost forgot. Trump’s nuclear war against North Korea might also effect our savings.

Oh yeh, and the BBC will blame it all on Brexit.

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1 Response

  1. anon says:

    “Oops, almost forgot. Trump’s nuclear war against North Korea might also effect our savings.”

    You were saying?

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