Why 2022 Will Be Worse Than 2008 and What You Need to Know
Time to call your momma
The Federal Reserve will, as they have always done, do everything in its power to kick the can down the road regardless of the economic consequences.
It happened in 2008. It happened during the pandemic.
And it will happen again.
The problem with this strategy is that this only works for so long before we reach a point of no return. What’s even more concerning is that many of the same factors that led to the 2008 financial crisis are present today.
Inflated home prices, high levels of consumer debt, and a stock market that is ripe for a correction. The difference this time is that the Fed has less ammunition to fight an economic downturn. So, in the wake of this “New Great Recession” here are the five challenges that Americans, and you as an investor, will face over the next year.
1. Crash of all crashes will come soon
To get an idea of why things will get worse, you first have to understand the “Repo Markets.”
The Repo Market is like the pawnshop for major financial institutions. Banks go there to pawn off assets like treasury bonds in exchange for cash to pump into equities or crypto. Unfortunately, the…
