Press "Enter" to skip to content

Big Bank Experts Predict Global Economic Crisis Like 2008 Crash

Professionals at investment bank JPMorgan say the next global economic crisis will start in 2020.

Experts say the recession due to occur in two years will be less impactful than the 2008 crash, which sent the globe into recession and has been named the worst recession ever.

The bank says U.S. shares could plummet by 20 percent, far less than the 54 percent drop in the S&P 500 index ten years ago after the collapse of Lehman Brothers 10 years ago last week.

Significant drops would be seen in energy costs, the price of base metals and shares in developing markets, such as China, Russia, Brazil, and India.

JPMorgan administrators Federico Manicardi and John Normand described this situation as “probably unalarming” compared to the average of former disasters.

Their examination is based on a model that considers the length of the economic expansion, the likely duration of the ensuing recession, the level of support, asset-price estimates and the degree of deregulation and financial reform ahead of the crash.

Another JPMorgan analyst, Marko Kolanovic, predicts that the next economic crisis could be started by “flash crashes” – unexpected stock sell-offs by computerized trading systems.

“Basically, right now, you have large groups of investors who are purely mechanical,” Kolanovic said. “They sell on certain signals and not necessarily on fundamental developments. Meaning if the market goes down two percent, then they need to sell.”

This “great liquidity crisis”, as described by Kolanovic, would need central banks to avert a spiral into a financial depression.

“The next crisis is also likely to result in social tensions similar to those witnessed 50 years ago in 1968,” added Kolanovic.

The newest recession prediction comes as Mark Carney, the governor of the Bank of England, advised that a no-deal Brexit might lead to an economic crisis as damaging as the 2008 crash. Great Britain is set to withdraw from the European Union in March of 2019.

8 Comments

  1. Result nic.in 2019 March 17, 2019

    Pretty nice post. I just stumbled upon your blog and wanted to say that I’ve really enjoyed surfing around your blog posts. In any case I will be subscribing to your feed and I hope you write again soon!

  2. my singing monsters March 27, 2019

    I have read several excellent stuff here. Definitely price bookmarking for revisiting. I wonder how much attempt you set to make such a fantastic informative web site.

  3. Corinne Riveros April 8, 2019

    Up to now, you require to term of hire an absolute truck or van and will also be removal equipments to valuable items plus check out the new destination. From the long run, which end up with are few things except anxiety moreover stress and anxiety. removals stockport

  4. minecraft April 11, 2019

    Hello, I enjoy reading all of your article post. I like
    to write a little comment to support you.

  5. tinyurl.com April 13, 2019

    It is actually a nice and useful piece of information. I am
    happy that you just shared this useful info with us. Please keep
    us informed like this. Thanks for sharing.

  6. minecraft April 18, 2019

    Hi there, I discovered your blog by the use of Google while
    searching for a comparable subject, your site came up, it seems great.
    I have bookmarked it in my google bookmarks.
    Hi there, simply turned into aware of your weblog thru Google, and located
    that it is really informative. I am gonna be careful
    for brussels. I’ll appreciate should you proceed this in future.

    A lot of people will likely be benefited from your writing.
    Cheers!

  7. minecraft April 23, 2019

    Hello there I am so delighted I found your blog, I really found you
    by accident, while I was researching on Aol for something else, Nonetheless I am here now and would just like to say
    thank you for a incredible post and a all round interesting blog (I
    also love the theme/design), I don’t have time
    to read it all at the minute but I have bookmarked
    it and also included your RSS feeds, so when I
    have time I will be back to read more, Please do keep up the excellent b.

  8. minecraft April 23, 2019

    Hello there! Do you use Twitter? I’d like to follow you if
    that would be ok. I’m definitely enjoying your blog and look forward to new posts.

Comments are closed.

Mission News Theme by Compete Themes.