The world’s
leading magazines increasingly speaking about the new financial crisis. Is this
a prediction or manipulation? I will try to find out the answer in the
following article. Before the reading, we must understand that the crisis
consists of a huge number of factors and even if it starts locally this spreads
to the whole globe quickly. What is more, the crisis is the normal and
repeatable economy phenomenon. Over the past 100 years, the world survived 8 global crises.
The tech
bubble can be noticed in technology stock exchanges. These stocks operate the
big tech companies which work in the computer technologies field. The examples
are the entities that develop artificial intelligence, autonomic car driving,
fin-tech and so on. During last decade we have been observing the high
valuations, fast ups and downs and speculations. The occurrence of above is
clearly described on bitcoin price chart.
China–United States trade war[ii]
This is an ongoing economic conflict between the world’s two largest national economies. The cause of
the problem is unfair trade practices from the China side and the goal of the US
to do not lose the world’s leading economic position. The Chinese business does
not hesitate to steal the intellectual properties, technologies and produce and
export it and the Chinese government successfully supports this playing with
currency devaluation making the Chinese product more attractive to foreign
buyers. The US government setting tariffs and other trade barriers to stop the expansion.
Nowadays the
end of the war must be done by signing the US-China trade deal[iii].
You can look
closer to this topic on the video below
World’s
leading economies recession[iv]
Basing on
information about the world’s leading economies GDPs we can see that the expectation of growths was corrected to minor side.
Looking on
German’s GDP forecast for the whole of 2019, was revised down from the 0.8% GDP
rate projected at the beginning of the year, to just 0.5%. In quarter 3 of 2019
the economy growths only by 0.1%. This is shown on the graphic below.
The reasons are
the poor performance, falling worldwide demand for capital goods, which has hit
Germany’s export-reliant economy, along with political uncertainty and
structural changes in the automotive industry.
Summary
No one can
claim that the world falls into the crisis today. We must deeply analyze the
information from information sources, be smart with manipulations and be prepared
for any consequences of described
above cases.
Questions
1)
Do you believe in new
crisis?
2)
Are you ready to
financial crisis?
3)
What would you do to
protect yourself?
Comments
2) In my opinion, you cannot be ready for a crisis, because it is not something we are waiting for. I certainly try to have a stable and good job in which I will be a "needed" employee, but I do not know if it is enough. I also try not to spend everything, but to save some money.
3) As I mentioned in the second point, good and constant work and financial security are my way of protecting myself. Additionally, you have to remember that after every storm the sun comes out", so the crisis is only temporary. I am optimistic, so I think that everything always works out in life.
2. Probably not. As long as we don’t feel the crisis that much, we don’t think about protecting ourselves from it. On the other hand, what can we possibly do? I doubt that considering our current financial situation we can spare a lot more money.
3. There are couple of options. One of them is buying something that won’t lose its value, for example gold. Another option is to leave our country and find a job somewhere else, where the government doesn’t do things as stupid as ours. The UK is going to leave the EU, so it would definitely be harder to get there, but once we do, the conditions to make money should be better than now.
2) I believe I am, I'm continously buying, what I believe, are assets that will come in handy when it happens.
3) As i said before I'm buying assets that are not dependent on any currencies values so when it will be needed i'm going to cash them out to bring the most from incoming crisis.
2. It hard to say actually. I have some savings but as long as we can’t be certain how long the crisis will last, I can’t be sure that I’ve saved enough money.
3. I can secure myself for a rainy day. I think it’s a good idea to make some investments. Also opening a deposit account is a appropriate way to protect yourself against crisis.
I am ready for the financial crisis, in my opinion people working in IT should be able to cope if they do not spend all their money immediately.
Money must be kept in shares / flats and other forms. It is important that some of the money is not in the form of cash.
2. A tricky question, although as I mentioned in the first section I do not believe in the existence of crises. I believe in the awkwardness of people who do not respect money (they are too wasteful so they cannot survive the worse period)
3. I always try to have 10 times my salary. I think that such savings on the bank account will not allow you to reduce the quality of life.
Yes I do, it can not be avoided. It is just how the economy works - there must be a katharsis once for a while.
2. Are you ready to financial crisis?
No one can be really ready for the crisis, as there are too many variables in that period. One just has to survive it somehow.
3. What would you do to protect yourself?
Savings may be a good idea, not only for the crisis. But if the crisis is really big, you should not be that sure about your money on bank account, as there is a marginal chance that a bank will go bankrupt. The best way to protect oneself is to have many different skills so that any new "emergency" job could be easily found.
2. Actually, no much, but it depends on a kind of crisis. I have some savings but not a lot. The most important at crisis is to have a stable income, without that even after you will have troubles.
3. Make more savings, invest, have a stable work, be sure that my bank accounts are safe. k.
Every day, people are increasingly inclined to believe that the new economic crisis is already around the corner. Because many countries have mixed policies, and their policies affect not only the local economic situation, but also the global economic market. Therefore, it is very difficult to say whether he will be in the near future.
Are you ready to financial crisis?
It seems to me that a financial crisis is a crisis, because financial or economic institutions on a global scale are not ready for them. I'm not talking about ordinary people. They will suffer in the first place, since usually it affects many areas of life.
What would you do to protect yourself?
It is very difficult to take steps to solve this problem, of course, if you are not the head of a large corporation or the president of the state from G8. It will depend on a very large number of people.
1. Not really, I mean there could be possible crisis but I highly doubt it would occur within next few years .
2. No one is ever ready for that. Except for people who cause it...
3. I'd say there is really nothing to do to protect my wealth which equals zero really.
Yes, winter is coming.
2) Are you ready to financial crisis?
No, I still continue to buy so many unnecessary things which I don't need.
3) What would you do to protect yourself?
I would love to stop buying unnecessary things. That would save a lot for me.
2. I would say that nobody can’t be completely prepared and ready for a financial crisis like it is totally unpredictable and nondeterministic.
3. I try to diversify my resources and allocate them to different financial instruments. I think that it might reduce the potential losses.
The global economy, which has been growing for almost a decade, must slow down when the policy of stimulating the US economy is inevitably quenched. "When the year 2020 comes, conditions will arise for the next collapse," the scientists say, which is likely to be the case.
2. Are you ready to financial crisis?
Rather not, I'm just starting the adventure with work and finances. I don't feel the crisis right now while it's probably already starting.
3. What would you do to protect yourself?
If I had a larger flow of cash I would probably invest in gold. Observing the economic markets, gold has always been of high value. You can also find a job in a safer country and move there.
2. Are you ready for a financial crisis?I don't know how to prepare for the crisis and whether it is possible. I am quite a young person. I have no loans and I'm not afraid of the crisis. My profession will definitely exist and I think that it will not feel that much. Of course, I have some of my savings for a rainy day. I think that 100% cannot be prepared for something that is to come unexpectedly.
3. What would you do to protect yourself?First of all, I think that there are many ways to save. I should keep some of the money in the bank so that I have quick access to it. I should invest some in the crypto exchange and some on the stock exchange. Maybe I should also look around for 100% remote work somewhere in Switzerland, then move to Vietnam and spend some time there.
2. Yes, I am ready for the financial crisis. The most important is the financial pillow, so you need money for a rainy day and everything will be fine. And above all you have to be of good cheer.
3. As I wrote above, a financial pillow is the best choice.
Regarding the solution on crisis I definatelly agree that gold servives everything.
2)No, not really. It is a near-impossible task for a student.
3)Gathering some currency-agnostic and highly liquid capital is probably the safest option. Then in the case of the crisis, you can even profit from it by buying the stocks while they are low.
I do believe in new crisis, it’s just a matter of time, and I think that it will be much sooner than we expect.
2) Are you ready to financial crisis?
Unfortunately, I am not. I think that you can’t be REALLY ready for a financial crisis.
3) What would you do to protect yourself?
To be honest I don’t know, it’s a bad time for investing money but on the other hand it’s stupid not to do anything with it because of inflation. I would probably short stocks that I believe are overpriced.
Yes, I believe in new crisis because it is the normal and repeatable economic phenomenon. What is heading towards the global crisis is perhaps unsustainable market rise attributed to increased speculation in technology stocks or economic conflict between China and USA. Moreover, falling worldwide demand for capital goods and political uncertainty may be the causes of such crisis.
2.Are you ready to financial crisis?
You can't be fully ready for a financial crisis because we don't know exactly when it will come. Although I am aware of this when looking at today’s world economies. So I can protect myself in some way.
3.What would you do to protect yourself?
I save my money and I'm constantly developing in my career, so that I hope I can easily keep my job during the potential crisis in the near future.