The strategist of the consultant Mint Partners, Bill Blain recently asserted that 10 years after the financial crisis very little has been repaired and the next bubble is about to explode.
Blain said that this time the bond markets will be the ones that trigger the chaos.
"The feeling that a crisis is about to come is very similar to that of June 2007, when the first funds backed by mortgages in the United States. they began to falter, "the analyst described, adding that, although the problems regarding consumer debt continue, the next financial crisis is likely to emerge from corporate debt.
"We are seeing difficulties in the highly leveraged sector of the junk bond markets [high risk investments financed with high levels of debt], and the companies that correlate with highly leveraged clients - such as health and telecommunications - also have problems" , he added.
In this sense, the strategist points to the recent move of the People's Bank of China, which some days ago injected 47,000 million dollars in its financial system, which propelled the global securities market. For Blain, however, the stock market does not matter.
"Central banks have little to worry about in 2018, because if markets become unruly, they can simply throw a lot of money at them," the analyst explained. "But the truth is in the bond markets, and that's where I'm looking at the breaking of the dam. The great crisis of 2018 will begin in the darkest depths of the market.
i think the write up is right
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit