The Great Depression of 1929 was the result of the overuse of debt to buy stocks on margin. The Great Recession was the result of rampant greed and default in the mortgage market. This current situation is the result of an entire shut down of world economies.
We have never seen the complete shutdown of world economies as we have during the coronavirus pandmic.
The injection of over $6 trillion into the economy and the layoff of over 20-million Americans within a month's time is a catalyst for economic wreckage. The stock market is surging, but is this a true reflection of market conditions?
We may see a bearish market pattern emerge as millions of Americans do not have jobs to return to when the lockdown ends. We have unemployment levels above 13% currently, and as time goes on, the damage will ripple through our system.
As Central Banks print more currency, debt piles up and people on lockdown fight to stay afloat amidst default, will be see another depression? We shall see.
Picture from Pixabay.
I couldn't agree more. I just wish that so many people would open their ees to this. The U.S does not want to lose any power no doubt. So every dollar turned into crypto takes a chunk out of it. So what really annoys me is they try to make it difficult for some of the best websites, and say trading platforms to engage with U.S customers like myself. Also cmon I can short stocks all day to diversify risk. But for crypto that's a crime. It's all to try to push it away. But we will stand, and we will fight it. It's the solution that provides the most utility for consumers. Banks, big business and the government are just gonna have to get over it, and kick rocks!!!