Global economy

The Next Financial Crisis Is Not So Far TAGS: | | | | |

After 2008 crisis, exponential growth peaked in financial markets. S&P 500 Index, Dow Jones Industrial Average, NASDAQ Composite, FTSE 100 Index rose dramatically. It seems like this is a bubble and will burst and cause a new financial crisis and I think it is not so far. “The “perpetual money machine” will suddenly broke. I made a research and found that graphs are so similar just before Great Recession and at some point, early 2000 recession.

Photos below illustrate correlations among daily high prices, standard deviations and forecast prices. Price versus time

FTSE historical chart

Another symptom of financial crisis is LIBOR rate. LIBOR rate is moderately rising.

Unemployment is the United States of America is between 4-5% which is almost the same just before 2008 crisis.

UK unemployment rate is also similar to 2007-2008.

As well as, EU unemployment rate.

In conclusion, there are a number of potential triggers to a new crisis. Equity prices, Brexit, US Presidential Elections, slowing down of Chinese economy and some overvalued rates. Maybe one of these reasons will trigger a new financial crisis.

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