The financial world is still collapsing.
The financial crash of 2008 is due to the consequences of very complex banking products whose risks were not seen by the bankers. The managers who were responsible for the staff all saw the potential profit factor, but as the products made by the quants were so complex they did not understand what the risks involved.
Until today, these products still have very complicated systems to cover, for example, home market loans. Every day, we live with our current financial system at the edge of the abyss because, if a complex product collapses and makes huge losses, this can have disastrous consequences for a bank.
When there is a large bank, we get a domino effect like in 2008 when Lehman Brothers overturned.
Solution: CRYPTOCURRENY
The problem is that our current financial system is managed by banks and not by the people. A decentralized system such as bitcoin can solve this problem and still (through smart contracts) provide loans and others (simple) financial products.
Decentrilized systems will be the future!
If you would like to understand the 08 crash ,probably the easiest way would be to watch a movie named The big short on netfilx, the actual "perfect storm" that created the enviroment for the crash was not so perfect, it was just greed at an alarming level and every bank and mortgage company had a hand in it. unfortunately we didnt learn and the "perfect storm" is on the horizon and quickly blowing in. If you can pay your home off do it. if you canset aside a little currency, i.e crypto,silver ,gold do it, i recomend silver, it trades at a lesser value than gold and would be easier to do commerece with. and i dont mean contracts i mean actual holding silver. cant hurt to have some laying around it will always be worth something. We have stretched this rubber band as far as it can go and pretty soon it is going to snap and it will be that quick, dont think it can happen? i guarantee there were millions of americans that thought the same thing on oct 27 1929 and then on Oct 28 when their banks were closed and there was nobody to ask for some of your dollars for they started to become believers! and now if the bank folds you are personally responsible for its debt because now you are not a depositor anymore which means you can participate in the loss but not the profit because you are an investor in whatever bank you have your money sitting in,Under Dodd-Frank, depositors are an unsecured creditor to the bank. The federal government under “Orderly Liquidation Authority” outlined in the legislation can seize any financial firm, not simply the largest ones, if the Federal Reserve, the secretary of the Treasury and the FDIC determine a particular bank failure may cause instability in the U.S. financial system.
A creative alternative to giving account holders bank equity after confiscating their deposits to “bail-in” a troubled financial institution may be to offer a special-issue U.S. Treasury instrument that may only be sold over a five-year period.
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In 2008 the bankers in The City (London) were calling there wife’s and told that they had to exchange all there savings into gold, pack there bags and had to go to the countryside with the kids. They believed that the world was on the edgs of a world crisis. This true story reflect again the treats we have in our world today. The system is to complex to foresee the risks involved.
Don’t you think blockchain and specially cryptocurreny can have a solution for this banking problem? Because with the use of blockchain the world has a decentralized financial system and we (the people) have all the influence.
The centralized system that we know will be out of business within 10 years in my thoughts.
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Beautiful post
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In an ideal world, currency of any kind would be obsolete. But since that seems to be an utopia, cryptocurrency is the next best alternative, because at least it cuts out a lot of corruption by removing the banks that abuse the financial freedom of men.
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I hope it will be a soft switch to a new blockchain economy. Yet the blockchain & cryptos integrate quietly and without big disruptions, if it goes on for some more years it could work.... But you can never know what happens if the big old money gets nervous... fun fact: Bitcoin startet in 2008, the year of the big crisis....
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There is something called as debt cycle which is reason for recessions.
You should watch this video which will shed a lot of light:
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