Recession Incoming

askme
askme

The derivatives market is the biggest bubble in economic history of mankind. The derivatives market is literally big banks placing bets on every aspect of the world economy. And these banks don't give a shit how risky their bets are because of the high profitability and they think that The Federal Reserve will bail them out, just like in 2008. But this time, no one will be there to bail them out, the market is worth too much. All the classic signs of a bubble getting ready to burst are here.
1. FED interest rate hike
2. The experts claiming everything is okay
3. The real economy slowing down
4. The bubble has inflated to an unsustainable size

Good-Bye World Economy, it was nice knowing ya!

Other urls found in this thread:

bis.org/statistics/derstats.htm
veekyforums.com/thread/1876935/business
youtube.com/watch?v=IrB8rXhO0_0
inquisitr.com/135667/any-society-is-three-square-meals-away-from-anarchy-suggests-researchers/

iluvmen
iluvmen

Please post some numbers. Given pricing models wouldn't that mean the underlying assets are in a bubble?

BinaryMan
BinaryMan

read the numbers yourself

bis.org/statistics/derstats.htm

Nojokur
Nojokur

How to make money off this crash?

Supergrass
Supergrass

veekyforums.com/thread/1876935/business

SomethingNew
SomethingNew

Sell bullets.

Illusionz
Illusionz

If the dollar itself crashed then you'd want to have gold & silver. Or the mining stocks. Or maybe some crypto.

Sir_Gallonhead
Sir_Gallonhead

owning stocks in anything would be worthless because they were bought with money that is now worthless

Carnalpleasure
Carnalpleasure

Time to get into the trades

Harmless_Venom
Harmless_Venom

so... its a good moment to buy kneepads? no? o.O

idontknow
idontknow

Yfw the price of blowjobs goes down as the sex market becomes saturated

Emberfire
Emberfire

Actually the reverse is true. The market will dry up and more people will offer services dirt cheap. Invest in alcohol.

Fried_Sushi
Fried_Sushi

and weed

massdebater
massdebater

I'm new to Veeky Forums and too stupid to understand what information I'm supposed to get out of this.

Could anyone explain it to me?

w8t4u
w8t4u

OP is informing you of the impending demise of the world economy, not much you can do but pray

SniperWish
SniperWish

I it got so far.

I'd just like to know a bit better why.

Is it because the FED interests are hiking while there is nothing underlying that's worth it?

Sorry that I'm probably stupid but I'd like to understand the situation better.

Gigastrength
Gigastrength

those numbers shown in the link are how much the derivatives market is worth (roughly 1.2 quadrillion) which is pretty scary considering that the world GDP is only roughly 75 trillion. The bubble bursting would cause all the "too big to fail" banks to collapse and they would take the world economy with them because there's no one that can bail out all those massive banks. Not even the FED has that much power.

BinaryMan
BinaryMan

Thanks for clearing it up to me.

That looks very bad actually.

WebTool
WebTool

very bad indeed

Spazyfool
Spazyfool

Think how many baby boomers are going to start cashing out on annuities and other stock market based retirement funds. If your parents have these funds, and have retired but not collected, tell them to get out now.

Raving_Cute
Raving_Cute

if the $ crashes, does that mean the paper money and the ones stored in the bank no longer function as tradable money?

is it back to the gold and silver?

Sir_Gallonhead
Sir_Gallonhead

Will it be the derivatives market that makes it blow though? I know its a huge issue but i think there are some bubbles more directly related to consumer markets ready to pop.

What is it that will send us over the edge?

I think the derivatives will be the thing that makes sure when it does go it will never be able to come back.

anyone have some rough time estimates?

I think everything is going to be toast by the next rate hike

happy_sad
happy_sad

how to maintain my capital?
i'm holding cash (euros) right now
am i fucked if shit goes down?

dollar is fucked as well?

Poker_Star
Poker_Star

So buy Gold and other precious metals and wait for the crash? Then buy up cheap stocks and foreclosed properties? What else?

TreeEater
TreeEater

i honestly thought we were toast when the FED hiked the rates last week, looks like we were bought a little bit more time

StonedTime
StonedTime

I'd like some input from Veeky Forums on this. Largest generation of Americans all about to collect those billions from the stock market and they have already started. What damage will this do? I feel like it's reason alone to pull out now.

eGremlin
eGremlin

I thought we were too, I was expecting a full point or more, but then I realized if they did that it would become apparent they deliberately wrecked the economy overnight.

I think they're too afraid of the rope, they're going to make it slow and painful this time

Sir_Gallonhead
Sir_Gallonhead

that's usually the idea, but idk if a recovery from something like this is possible

viagrandad
viagrandad

Essentially, yes. If the dollar collapses/is no longer backed by the US Treasury, then that piece of green paper in your wallet will become worthless beyond its potential value as a curio/collector's item.

Snarelure
Snarelure

The BIS is the central bank of all central banks. If it says a big shit is coming down the tubes you can bet its going to be a bad case of explosive diarrhea.

The entire premise of infinite growth in finite world is a logical fallacy so probably wasn't a wise thing to lets them build their tower of usury babel, it can't end well. Almost like some big inside joke when they designed the building...

Skullbone
Skullbone

i'd rather we have a massive recession now than an unrecoverable one later. The FED should get it over with so we can all start investing with market lows

PurpleCharger
PurpleCharger

OP is most likely refering to this video

youtube.com/watch?v=IrB8rXhO0_0

CodeBuns
CodeBuns

see the comment above yours and you'll realize the next massive recession will likely be unrecoverable

Snarelure
Snarelure

true... i hate feeling like the people preaching doomsday though, even though every day it seems more and more likely

WebTool
WebTool

not trying to preach doomsday man; we've identified problems and are just trying to share them. we've been doing it for years, unfortunately things have gotten so bad and the problems have been left to fester that at this point it kinda points to doomsday. I don't want it, but it might happen

though you could argue the first great depression was a doomsday of its own.

CodeBuns
CodeBuns

not trying to preach doomsday man
proceeds to preach doomsday
you niggers have been doing this every year since 2009 when will you just accept the fact that nobody can predict the market

Lord_Tryzalot
Lord_Tryzalot

LOLOLOL!!!!

wtf!=!"

in a world of abselute chaos YOU THINK people want FUCKING "PRECIOUS" GOLD?

it ain't worth shit at that time you shitbag.

OMG OMG OMG.

Fucking Veeky Forums when will you ever learn

Playboyize
Playboyize

This. Since we're all going to be living in Mad Max soon, shouldn't we be buying guns and non perishables? What the fuck am I gonna do with a bunch of gold and silver when martial law gets declared?

Fuzzy_Logic
Fuzzy_Logic

that and shitloads of canned food

girlDog
girlDog

Brah. We're over the 8 year cycle. That just tells you something about to happen.

Nojokur
Nojokur

Well I'm not gonna enjoy this at all.

TreeEater
TreeEater

so what are we back to bartering goods and services when this happens? Surely the world governments will do something to preserve whatever's left of the economy

takes2long
takes2long

If the stock market collapses, how would Veeky Forums make shure they can survive the crash?

What would be the best thing to do?

Buy gold or are there other ways than just buying up assets and gold?

hairygrape
hairygrape

All the classic signs of a bubble getting ready to burst are here.

You mean we can't just keep spending money forever and hope our kids pay off our debt?

Skullbone
Skullbone

FED interest rate hike

I don't think a quarter of a point is going to send us spinning off into oblivion. Honestly it's kind of retarded to me that people are even worried about sub 5% interest rates.

King_Martha
King_Martha

What the fuck am I gonna do with a bunch of gold and silver when martial law gets declared?
buy yourself a ticket on a boat.

happy_sad
happy_sad

truth is most of the world went through periods of insane economic crisis and hyperinflation without much problem regarding public safety. murricans always imagine there will be looting and people killing each other over scraps. and i think they are right. that's what they do chimp the fuck out from every hurricane or just about anything unusual.

meanwhile the rest of the world will weather this storm. it will not be pretty sure, but people would stick together and restart the economy.

no in the us tho. that will be a lawless wasteland.

iluvmen
iluvmen

The rest of the world tries to invest in a decent social safety net or infrastructure

lostmypassword
lostmypassword

Cultivating stray cats is not a social safety net.

PackManBrainlure
PackManBrainlure

have 3500 in the bank, only assets are a $150 bicycle and a $3000 car

Well, at least I have nothing to lose. Hit me, Johnny.

I will gain so much pleasure if the normies get fucked by this. Similar reasons I can't wait for the real estate market to crash. Thought you had an $800,000 house, you insufferable middle class nobody? Get fucked, the value is $150,000 now. Have a fun retirement.

Having nothing means my suffering will be minimal. Really, only the middle class will get fucked on this, and good. They deserve it.

Sharpcharm
Sharpcharm

Really, only the middle class will get fucked on this, and good.
yeah that's about it. the rich will get only richer. if that's what you want you gonna get it.

LuckyDusty
LuckyDusty

Already started buying. I've told my closest ones and I believe this is coming in about 2-3 months.

DeathDog
DeathDog

I know it's not much but at least I won't have to fight Tyrone at Walmart when shit gets wild. Get ready brothers, be safe.

BunnyJinx
BunnyJinx

High oil prices are the only thing that would cause a recession right now.

High oil prices will return soon, and will decimate our economy again, because our economy is still reliant on oil to function.

people still live spread out and rely on cars to get to work and go about their daily lives.

Instead of invading iraq and reflating a housing bubble, we could have used that money to build mega cities to prepare for high oil prices.

We are screwed guys.

Crazy_Nice
Crazy_Nice

The fuck is an "export soda" ??

SomethingNew
SomethingNew

derivatives

there's literally hundreds of kinds of "derivatives" that are publicly(exchange) traded and private/institutional contracts.

you saying "derivatives" market is as vague as saying "there will be a vehicle accident in the world tomorrow"

iluvmen
iluvmen

How old are you? 08 was a recession and life went on normal for most.

Nothing wrong with keeping that around but you sound like you're mentally ill.

lostmypassword
lostmypassword

And how much of banks assets are in derivatives?

Carnalpleasure
Carnalpleasure

ANY SOCIETY IS THREE SQUARE MEALS AWAY FROM ANARCHYā€¯ SUGGESTS RESEARCHERS

inquisitr.com/135667/any-society-is-three-square-meals-away-from-anarchy-suggests-researchers/

Well even if the next recession/depression isn't as bad a he thinks it's still an extremely good idea to be prepared.

There's no telling what kinda stuff could happen to disrupt civilization in horrific ways.

Super volcanoes, killer flus, wars, terrorism, Chelsea Clinton 2020, asteroid strikes, another Carrington Event, etc.

kizzmybutt
kizzmybutt

I imagine this. The armies and governments of the world aren't just going to disband because nomonieskthnxbye, just as they didn't in the Great Depression.

If we do nosedive like never before, it will be a nasty, terrible time, and society and the nations will come out looking somewhat different in the end, as will the economy, but it's not going to be Mad Max except in places it nearly already is.

Rioting, theft, starvation, murder in the streets, rape gangs, and so on? Likely in inner cities. Less so in rural communities. But it's not like people are going to fire of the nukes because the peasants are revolting.

The fact that people have to raise a Mad Max scenario, where any sane person would choose to be among the first wave of casualties anyway rather than being either raped to death or the equivient of an alcoholic wandering hobo, before having precious metals and stored resources become a losing proposition should tell you how historically powerful and potent these things are.

A farmer in a drought might sell his land for a gold coin that will feed and water his family in the short term, but if you have more gold where that came from, you now also have land when things start recovering.

whereismyname
whereismyname

seek psychiatric help

LuckyDusty
LuckyDusty

kekd

ZeroReborn
ZeroReborn

Kek. Thanks, gives me even more reason to increase my long positions.

eGremlin
eGremlin

assuming the world economy crashes u definetly dont want any form of money euros or dollars

AwesomeTucker
AwesomeTucker

i have seen this a couple of times btw.
if the cats were fed but not neutered there was an infestation of them in a few years. but birth rates in developed nations decline. humans don't have 3-6 kids each year and stuff... so probably a useless comparison.

also you just wish you had the unemployment rates of say sweden. and sweden doesn't do social safety net by half measures.

Booteefool
Booteefool

stocking food for hard times is a sign of the mentally ill

wow.

StonedTime
StonedTime

I thought that derivatives insulate financial markets. How do derivatives pose risk to the financial system? Aren't the risks only posed to the counter parties?

As far as my understanding goes derivatives don't make the markets move, they only dampen the moves because these instruments are based on the markets while they don't actually compose the markets themselves.

Garbage Can Lid
Garbage Can Lid

OP is misunderstanding macroeconomics. You're right, as a contract between two parties, derivatives just shifts money around. There's also the converse derivatives which rise in value as the other falls. It's only a problem if banks take a large one sided bet.

JunkTop
JunkTop

Life will eventually come back to normal, but the first hours/days of any crisis will surely be chaotic.

PackManBrainlure
PackManBrainlure

Largest generation of Americans
Not anymore
Hasn't been for a year or two

cum2soon
cum2soon

No faggot I said

Nothing wrong with keeping that around

And implied he was mentally ill because hes going around telling people Mad Max is coming.

Gigastrength
Gigastrength

That's it pal. You're no longer invited to the bunker. Have fun fighting road warrior gangs on the surface world.

SniperGod
SniperGod

wait till its near the bottom buy some S&P500

Sharpcharm
Sharpcharm

no major terrorist attacks this year

Pls let it happen to boost my gun stocks