Economic crash

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I have a feeling we are overdue for an 08 style crash, or an even worse one. The past 50 years in the financial industry has built up a house of cards that is bound to collapse. Their naked short selling and blatant misuse of leverage has gotten so complex and interconnected that it has to fall apart, its simply unsustainable. Everything is inflating at rapid rates, this was bound to happen but the COVID-19 crisis saw things speed up at a very insane rate. Housing is reaching levels of 2006-2007, and the actual causes of the housing crash in 2008 where never actually fixed, just rebranded.

We've seen the market just plain irrational the past year. We've seen how financial institutions are blatantly trying to murder companies for profit, and now we're seeing retail traders fight back with GME and AMC. That situation is crazy in of itself and still ongoing, as the institutions doubled down and the retail traders aren't selling.

The landscape of everything and the markets are disconnected from reality. People's negligence has to catch up with them, there are economists who think the USA is too big to experience inflation. This is just insanity and it has to lead to a correction that's going to be insane. It feels like the house of cards is about to fall.

This is the time where money can be made though, during the 08 crash there where outsiders who saw it coming, they shorted the housing market and made billions. I don't have that kind of capitol, but I do know there are instruments retail traders can use to their advantage. A well timed UVXY call could net you 125k.

What do you guys think? I didn't even mention cryptocurrency but that is a whole other beast that I believe is as significant an invention as the internet. I've been using it to secure wealth lately because of what I've said above.
 
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reynad5150

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I have steered clear of the market and day trading and moved strictly into crypto. the 7 BTC that I had left over have been broken down into other cryptos and my portfolio is looking quite good. My biggest concern at this point is the market manipulation from nation states and hedge funds on the other side of the fences trying to slide the crypto market to bring people back to the fold.

My recommendation is save the crypto market and invest there, our stock market is dying.
 
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Crypto

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I have steered clear of the market and day trading and moved strictly into crypto. the 7 BTC that I had left over have been broken down into other cryptos and my portfolio is looking quite good. My biggest concern at this point is the market manipulation from nation states and hedge funds on the other side of the fences trying to slide the crypto market to bring people back to the fold.

My recommendation is save the crypto market and invest there, our stock market is dying.
I agree, I love crypto and I invest in it as well. Was too young to buy years ago. Almost convinced my parents to buy me some but they got sketched out by Mt Gox (rightfully so).
 
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reynad5150

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I agree, I love crypto and I invest in it as well. Was too young to buy years ago. Almost convinced my parents to buy me some but they got sketched out by Mt Gox (rightfully so).
Fortunately for us now, there are so many legitimate exchanges, that we don't have to worry (too much) about getting the rug pulled out from underneath us.
 
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Crypto

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Fortunately for us now, there are so many legitimate exchanges, that we don't have to worry (too much) about getting the rug pulled out from underneath us.
yeah and decentralized exchanges exist now. I find it useful to onramp via stablecoins then trade on dex's. Unfortunately I can't trade perpetual futures right now because I live in the US, so I'm looking into duel citizenship.
 
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reynad5150

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yeah and decentralized exchanges exist now. I find it useful to onramp via stablecoins then trade on dex's. Unfortunately I can't trade perpetual futures right now because I live in the US, so I'm looking into duel citizenship.
Just funnel your money into the country via other means, fren. It's the only way to win the game.
 
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AMC_Squared

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There's rumors of construction being made here in California to allow low income and minorities to buy their homes, only problem is that most won't check credit and are gonna start giving them away carelessly to create a second housing bubble. Even CDOs are starting to get formed as the pandemic passes. They tell us to not be critical of the people getting the homes no matter what credit score they've got so we're most likely seeing the start of a new housing crash like in 2008 except that it'll happen with minorities because of Equal Housing Act that Trump tried to remove but then Biden stabilized it and had it strengthened as well as a lot of BLM protests causing these CDO loans to favor minorities that'll fuck Em in the ass after the pandemic is over plus the foreclosures and evictions in California being pushed back will create more housing for these minorities too. Best info I can give since I love you Anons and I want you all to make it

The Community Development Financial Institutions (CDFI) Fund, part of the U.S. Treasury Department, plays a vital role to help lesser-served U.S. business owners by increasing access to capital. Many Black-owned businesses have been helped by CDFIs because these institutions specifically "provide loans, investments, financial services and technical assistance to underserved populations and communities." On top of this, the CDFI Fund offers tax credits to spur investment.

$54 billion in tax credits if you make a loan which you would not otherwise make. I know that 54 billion dollars seems like nothing in a time where the deficit increases by a trillion dollars a month, but you're taking out 54 billion from what would otherwise be money to fund government spending, and use it to invest in unviable businesses. If the businesses were viable, they would already have attracted investment capital. This drives up prices, because the government is still going to print money to meet the budget, and the businesses invested in will get their money anyway, driving up rents and prices.
Oh wait, it gets better - they're bonds, so will be used to collateralize other loans. So the government misses out on 54 billion (but prints it anyway), the unviable businesses get 54 billion to lose, and the banks just take the tax credit then roll the bond into a larger bond and sell it off to some other sucker, and don't care whether the loan gets repaid or not. Isn't this 2008 all over again? :pepoG:
 
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We're always due for a crash. The system has been unsustainable since the dawn of agriculture - profit is against the law of entropy. A system cannot produce, not even remain neutral - all systems are in a constant state of degradation. As the saying goes, bears have predicted fifty of the last three crashes - and the bears are right to be worried, at any point in human history you can point to something's unsustainability.
Yet the sun still rises, doesn't it? Predicting a crash in such vague terms is like predicting the weather by saying "starting in December, it will get cold & snowy". Of course a crash will happen. Anything that lives is a house of cards perpetually burning off energy towards heat death.
I'm curious what you think the exact mechanism is going to be & what's your position for taking advantage of it? You mentioned naked selling & inflation but how do you think those things will work to cause turmoil?
 
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s0ren

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The next global ticking time bomb is probably the corporate debt bubble. It's basically 2008 but with corporations being severely over leveraged. A lot of the symmetry comes from things like the regulators doing a bad job rating the debt which is uncanny; first as tragedy then as farce as they say. Monetary and fiscal policy levers that the US government and most states around the world are going to have to pull to correct for their avid COVID response spending and getting the money supply back in order will probably set it off.

I suggest looking into it if you haven't, there's a good chance that a lot of multinational corporations are going to implode when the curtain drops and taking employment with them. It's starting to get more laymen coverage now because firms are starting to go bankrupt, but it's been on the horizon for years.
 
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