|
|
Investment Giants Warn! The U.S. May Face an "Unprecedented Credit Bubble" with Exploding Risks.
Recently, there's a quietly emerging topic on Wall Street, and the protagonist this time is those adept at reaping benefits when the market is most dangerous—the "black swans." You guessed it right; we're talking about Mark Spitznagel, the founder of Universa Investments, a prominent figure in the financial market known for his significant bearish positions.
Just heard that the maestro Spitznagel issued a warning about market sentiment, stating that the U.S. is currently in the "largest credit bubble in human history," and a market collapse is quietly approaching. Heavy, isn't it? Let me quickly give you an overview. We know that the Federal Reserve (Fed) announced a pause in interest rate hikes in recent months, seemingly aiming to give the market some breathing room. However, this big bear doesn't see it that way. He says the formation of this bubble is due to artificially suppressing interest rates and manipulating liquidity in the economy. What's going on? According to Spitznagel, the credit bubble is caused by artificially lowering interest rates and manipulating liquidity in the economy. Moreover, since the financial crisis, the economic landscape has undergone a drastic change. This is no small matter; he says once this bubble bursts, like a balloon being popped, it can't be stopped. Debts need to be repaid, and if not, defaults will occur, and the current debt burden has reached an unsustainable level. Does it feel a bit dangerous?
Of course, we also know that current economic data still shows strong growth, but Spitznagel is not very optimistic about it. He calls it a "pyrrhic victory." In other words, you may get some benefits now, but you'll have to pay even more interest later. Federal debt is also like this, becoming a problem for our future generations. In fact, it's not just Spitznagel sounding the alarm; some other Wall Street financial institutions are also expressing concerns about the U.S. credit and debt issues. Bank of America states that over the past decade, the U.S. has accumulated a large amount of debt due to ultra-low credit rates, and this debt could lead to difficulties for the U.S. economy, with an expected $1 trillion in private debt defaults. JPMorgan Asset Management and Goldman Sachs have also made similar remarks, believing that the number of debt defaults by high-risk enterprises is increasing, and the total number of corporate defaults and bankruptcies may peak in the coming quarters. It seems that not only our big bear is worried; even these financial giants are starting to feel a bit nervous. |
|
Post time 3-1-2024 18:07:28