Financial Crisis Ahead ? -
World Bank Head Sees "Quiet" Financial Crisis Brewing As Pandemic Lingers : World Bank Head Sees "Quiet" Financial Crisis Brewing As Pandemic Lingers | ZeroHedge
My Comment : It's just a matter of time. Will the PMs be a safe haven ?. The Fed will most certainly try to prevent a crisis, but at some point it becomes more than they can control. In the meantime both monetary and fiscal stimulus are running at full speed which forces the market bubble ever larger.
Excerpts:
She also said, "there's been a problem that has been delayed but not avoided" - that is the households' ability to repay their mortgage and service any other debt. During the virus pandemic, financial institutions worldwide agreed to grace periods for businesses and households, so they don't have to repay their debts.
Reinhart then asks the trillion-dollar question: What happens when those grace periods come to an end?
To sum up, Reinhart suggests the world faces a financial crisis if the pandemic continues to ravage the global economy.
This was a similar message that SoftBank CEO Masa Son warned about a couple of months ago of an impending "disaster" that could tank global markets.
More recently, GMO's co-founder Jeremy Grantham's latest research note suggested "this bubble will burst in due time, no matter how hard the Fed tries to support it, with consequent damaging effects on the economy and on portfolios. Make no mistake – for the majority of investors today, this could very well be the most important event of your investing lives."
And with 10Y nominal yields surging in recent days, maybe the bursting of the bubble is much closer than we think
