Is it going to happen again?
https://forexpro.community/en/blog/2016/06/another-wave-of-crisis-risk-is-rising
There is a huge debate what really happened in 2008, and what was the reason of the crises which we still are ¨paying¨? Most of the people are thinking that is was the fault of real estate? or there was something much more powerful?
In fact, there was: when on August 9th, 2007, BNP Paribas stopped withdrawals from 3 investment funds, because in a statement issued that day they just couldn't value their holdings, and in particular their subprime-mortgage assets.This are those words which were the ¨engine¨ to crush world economy: “The complete evaporation of liquidity in certain market segments of the US securitisation market has made it impossible to value certain assets fairly regardless of their quality or credit rating,”.
If the Bank doesn't know the value of what they have, how can ¨simple¨ people like us, know it?! It was a fear put in human brains. Emotions which took us to the point we are....
But what about now? Look at TVs news channels, read the internet, everything is repeating. World´s ¨Brains¨ are making the same steps like in 2007, putting gloomy about our futures.
Basically, doesn't even matter today the decision on Thursday, will it be A or B... The shadow is already put in our brains... What really matter is if this shadow will ¨touch¨ like a summer breeze, or it will be a tornado once again?
I really don't want to seem pessimistic... And I really hope that it will be just a ¨summer breeze¨, because I don't want to see my friends losing their jobs... Losing their manufactories and stopping exporting or importing... Don't want to see high numbers of unemployment rates and hear stories about people who can't buy the medicine, or just seeing people with no food at their homes... See how the government is ¨killing¨ people with their high taxes ¨to go on¨....
But still the reality is how it is.. And I hope that each of you will be able to make ¨smart¨ steps to go on no matter what will be, because thanks God we already lived similar situation, and most of us did learn a lot.