Is Another Financial Crisis Coming Soon?
In 2008, our country faced the most difficult crisis in recent memory. It was a moment of great uncertainty. Today, we may think that we have gotten past those difficult ordeals which can lead to a false sense of security. However, there are signs that we may be on the brink of a similar crisis. Experts on the subject who predicted the last recession are warning of a new one over the horizon. The following billionaires give us powerful insight into some of the things we should be aware of in order to be prepared for the challenges the country may face in the future.
Andy Redleaf, one of the most prominent hedge fund managers in the United States has claimed that there is a credit crisis looming. This crisis will occur within a 12-18 month period. Mr. Redleaf is an authority on the subject since he accurately predicted the U.S. financial crisis in 2008.
Mr. Redleaf told to CNBC… “People have no place else to put their money, and the stock market is getting more than its share. It’s very likely that something has to give here. I don’t remember any time in my career where there have been as many wildcards floating out there…”
Sam Zell, the real estate mogul, has echoed Mr. Redleafs concerns stating that there is instability in the markets and that a crisis can occur at any time. Carl Icahn in a recent interview agreed that the over printing of money and the volatility of the equity markets pose a danger for the U.S. economy. Lastly, hedge fund investor Crispin Odey adamantly warns that we are in a bubble. When the bubble bursts it will be too late to do anything to fix the problem.
These billionaires have been extremely successful in their respective business ventures and are right to question the sense of safety that has been created. For starters, there is still a great deal of danger and instability in the housing market. If this was not enough we also have to worry about an increasing 15 trillion dollar debt. To put it in perspective, just to pay off China and Japan who hold a sizeable 2.2 trillion of that debt, each american would have to shell out close to 7,000 dollars.
The financial crisis we endured was a difficult one. We need to be aware of the potential dangers and pitfalls of a system that has yet to revamp its financial structure. Until there is a serious and pragmatic restructuring of these mechanisms there will still be a danger of future economic crises. If we are to avoid another catastrophe, it would behoove us to pay attention to these experts who have been successful in their field and to watch for early warning signs.
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