The U.S. household wealth has surged to a high never seen in history: $100 trillion. The pump has been fueled by rising stock and property values. And when thing are pumped so high, they are being valued more than they are actually worth. Everything has been over valued for the past few years, from stocks to commodities. This growth is not sustainable, and the inflated bubble will result in a crash.
Source
Maybe this year will be when it happens, as foretold in The Economist of 1988 with 2018 being the year of the world currency. When this crash happens though, will more people be running to get into Bitcoin and crypto as a result?
The U.S. household wealth may be at $100 trillion, which seems good for the markets, but household income has been stagnating by comparison. The growing household wealth is not matching reality and won't be sustained, and a big correction is coming at some point to smack everything back down closer to reality. AJ Bell investment director Russ Mould told Business Insider:
Household net worth cannot sustainably grow this much faster than incomes. Assets have been bid up and at some stage there has to be chance that they correct, just as happened in 2000 and 2007.
The U.S. market is in a bull run, and apparently the strongest in history. Real estate is continuing to increase in value, making some people money by selling, and others getting into more debt to buy in. This increase in the real estate market shot up the household wealth value, but if it can't be matched by stable household income, then the market is poised for a huge correction.
The difference is likely to be accounted for by the surge in the value of financial and other assets — equities, bonds, property and rankly everything from vintage cars to art to wine to baseball cards. And this is one warning that at some stage another collapse in financial markets will sweep around the globe.
Another economic expert Nouriel Roubini expects a financial criss by 2020, saying the market has been showing "bubble-like behaviors". To boot, the global debt is rising to $250 trillion. These factors combine to set conditions favorable for a market correction. It could just be a minor correction as the financial sorcerers try to work their number-magic games and manipulations to keep the bubble afloat. But this could be the beginning of world-changing times ahead.
As such, Bitcoin and crypto might be the sight for a financial rescue for many. It's already being used in current financially imploding areas like Venezuela and others. With Bitcoin and gold operating more independently of traditional assets and commodities, people can store their value as the traditional economic model implodes.
But, it's no guarantee that Bitcoin will surge or not experience a crash if everything else crashes either. Yet, more people are aware of Bitcoin, with 80% in the U.S., and surveys show 1/3 of millennials are planning to invest in crypto in the next few years. If a financial crisis occurs, some of us may be in good positions as more people try to put their money into Bitcoin as a trusted store of value.
Thank you for your time and attention. Peace.
If you appreciate and value the content, please consider: Upvoting, Sharing or Reblogging below.
me for more content to come!
My goal is to share knowledge, truth and moral understanding in order to help change the world for the better. If you appreciate and value what I do, please consider supporting me as a Steem Witness by voting for me at the bottom of the Witness page.
Crypto is like a time bomb just past its time to explode, but for some reasons unknown, it has not exploded. Just a slight shake or vibration and "boom"
Hehe, nice analogy. Yeah, at some point it's going to burst and flood the world ;)
These financial times are certainly going to be interesting. All of this ungodly inflation of stock prices and everyone spending more and more money they don't have, it's bound to come crashing the hell down. I just hope that it comes crashing down big enough to clean a hell of a lot out. A lot of it stems from various big areas like banking and lending practices but consumers are also heavily to blame. People that I used to game with are spending their extra money on the stupid game instead of paying off bills, saving for a better car or even just saving money for the future. This is just a small sector of the foolish spending market but I think that there is going to be a massive change. I would just like to know when so I can bust out my bag of popcorn and watch it!
Well, usually it cleans the poor and sends more riches to the rich :/ I hope it does a proper implosion to the ground though as well. Gaming is a plague of hte 21st century, eroding time and brains to engage in futile endeavors that don't advance life in the short or long term. We seek to escape and waste so much of our time :/
Yes unfortunately that is true, the citizens take the damage.
I think crypto will be a safe haven during recessions. The recessions are caused by manipulation, debt-based offsets, and outright greed. Many of the factors that cause the economy to crash are untouchable in the cryptoshpere.
I think a lot of people at the top will be looking for a place to mitigate their losses, and crypto will be right there waiting. This will create a chain reaction effect of FOMO/FUD pump/dump action just like we saw last winter.
Yup, sounds right ;) Fomo pumps will be big then, as ppl scramble to mitigate the losses from traditional monetary system as quickly as possible once they realize their options ;)
I think the best option to store wealth really is via cryptos because banks and government can never take it away from you especially in times of hyperinflation, bank holiday, and such. @krnel
Really important point, what value does on put on the ability to have complete control over their assets? Priceless in my opinion.
Well, maybe through a threat of sending you to jail, but they can't force the banks to take your assets, that's for sure ;)
these are just a few of the signs of an impending crash. take the massive student loans as well, trade wars do not help either.
Cryptocurrencies might well be the big saving grace for the common people and especially for all that are in the space now, we are still very early days.
Yup, it's all building up, we can see, what will it take to pop... time I guess ;)
History repeats itself. I question how much is being borrowed against this worth, and at what point the possessions will be yanked from many just like with the farms when Volcker at the Fed devalued assets.
Oh, yeah, next time it's bail ins by customers of banks from the new bank laws, and bail out for banks and companies by all tax payers.
should there be a market correction simply don't sell , just HODL and then in a few years your investments will be worth more than before. Now would be a good time to take profit so you could buy at a discount if and when there is a market correction.
if the stock market has a correction the FUD chuckers will call it a crisis and a collapse and everything else and that probably will be good for things like gold and Bitcoin. that would be a nice time to have bought STEEM for 82 cents.
Yeah who knows what to buy, STEEM would probably be higher, but other coins even higher, like BTC ;)
If bitcoin were to double I think STEEM would be well over $5 if not more, so you would get a much better return on the STEEM in that case.
I agree with you whole heartedly. I'm waiting for the next fall to buy a house with the crypto I will hodl. May not be much but it can be a downpayment on that house when it happens.
I like it. Good plan ;)
Curated for #informationwar (by @wakeupnd)
Our purpose is to encourage posts discussing Information War, Propaganda, Disinformation and other false narratives. We currently have over 8,000 Steem Power and 20+ people following the curation trail to support our mission.
Join our discord and chat with 250+ fellow Informationwar Activists.
Join our brand new reddit! and start sharing your Steemit posts directly to The_IW, via the share button on your Steemit post!!!
Connect with fellow Informationwar writers in our Roll Call! InformationWar - Leadership/Contributing Writers/Supporters: Roll Call
Ways you can help the @informationwar